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Buy Ambika Cotton Mills – Call closed – 148% returns as on 09-04-10

Posted on: May 24th, 2009 at 7:45 pm

CALL CLOSED (LONG TERM INVESTORS – HOLD IT) Buy Ambika Cotton mills. Current market price: 74.90. Long term target: 149.80. Book value: 189.30. P/E ratio: 3.57

The Company’s principal activity is to manufacture and market cotton yarn. Its cotton yarns are used for manufacturing of shirts and T Shirts. Its plant is located in Kanniyapuram, Dindigul district of Tamil Nadu. The Company operates only in India.

The company has been working on value added products which yield better margins. To reduce power costs, Ambika has planned to increase the present installed capacity for wind energy from 13.8MW to 17.8MW by installing five windmills of 800kW each at an estimated cost of Rs21.48 crore.

Year      Month Dividend (%)
2008     Jun             20
2007     Jun             25
2006     Jun             20
2005     Jun             20
2004     Jun             16
2003     Jun             16
2002     Jun             12
2001     Jun             12
2000     Jun             12
1999     Jul              18
1998     Jul              18
1997     Jul              18

YEAR EVENTS 1988 – The Company was originally incorporated as Ambika Cotton Mills Private Ltd as a Private Limited Company on 6th October , in the State of Tamil Nadu, and subsequently converted into a Public Limited Company on 5th September, 1994.

– The Company was promoted by Shri P K Ganeshwar, Shri M Rathanasamy and Shri P V Chandran, for setting up a cotton spinning mill. The mill, located in Dindigul, Tamil Nadu, commenced operations in January 1990. The project, with an initial capacity of 6048 spindles was part-financed by a term loan from State Bank of India. The Company carried out an expansion scheme to add certain back-process machinery in February 1991, which was also funded by the State Bank of India.

1992 – The company began implementation of an expansion project to double its spindlage to 12096 spindles by the addition of 6048 spindles. This project which was financed by means of a medium term loan from State Bank of India and the State Bank of Mysore on a consortium and through a Deferred Payment Guarantee limit from IDBI. The project was successfully completed in March 1993.

1994 – The Company added Comber machines to its production line and humidification system. This was funded by SIPCOT through a term loan of Rs. 90.86 lacs.

– The Company currently manufactures combed and carded cotton yarn of counts ranging from 30’s to 40’s. These are used by hosiery manufacturers to convert the same into fabric or garments.

2000 – The Company has chalked out a Rs 14-crore expansion-cum-modenrisation programe.

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98 Responses

Comment pages: 1234567Show all

  1. CB Says:
    May 26th, 2009
    Posted at: 8:51 am

    Hi abdurahiman mattai muringamunda>, buy Alok Textile above 21.40 for a target of 23.. HDIL is witnessing some profit booking after the run up..hold it. it will move higher after consolidation

  2. SIVA Says:
    May 26th, 2009
    Posted at: 3:00 pm

    Hi CB

    what about market for today is there no any recovery for today

  3. SIVA Says:
    May 26th, 2009
    Posted at: 3:01 pm

    Hi CB

    what about market for today

  4. Ranga Says:
    May 26th, 2009
    Posted at: 5:28 pm

    guru todays close is 83, can I buy tomorrow this one?

  5. CB Says:
    May 26th, 2009
    Posted at: 6:11 pm

    Hi SIVA, Sorry was not online before..

    Hi Ranga, Its a med term play.. buy and hold for a target 120+

  6. Ranga Says:
    May 26th, 2009
    Posted at: 6:31 pm

    ok I can hold for minimum 2 months.

  7. CB Says:
    May 26th, 2009
    Posted at: 8:17 pm

    Hi Ranga, ok..sounds good

  8. sndpsk Says:
    May 26th, 2009
    Posted at: 9:00 pm

    Hi CB, can you pls suggest in which price can i enter in this script tomoro?

  9. Swanand Deo Says:
    May 26th, 2009
    Posted at: 9:18 pm

    Hi, I want to know about SAL Steel. It is growing fast. Is there any news, can I hold, I have 1500 shares.

  10. CB Says:
    May 26th, 2009
    Posted at: 9:51 pm

    Hi sndpsk, it was a buy on Monday.. tomorrow you may buy around 85 levels.

    Hi Swanand Deo, hold SAL steel.. it is a strong company and will do well in short term.. it can add 20% in short term

  11. Ranga Says:
    May 26th, 2009
    Posted at: 9:56 pm


  12. sndpsk Says:
    May 26th, 2009
    Posted at: 10:15 pm

    Sirjee, oh i missed the call of ambika mills. how can we get this kind of call alert?

  13. CB Says:
    May 27th, 2009
    Posted at: 12:03 am

    Hi Ranga, yes..its also run up a lot..but markets likely to open gap up tomorrow..not sure of going short

    Hi sndpsk, you could subscribe to investment ideas here: http://nseguide.com/subscribe-to-nseguide-via-email/ or visit http://nseguide.com/investment-ideas/ regularly..

  14. ibrahim Says:
    May 27th, 2009
    Posted at: 12:41 am

    hi cb today i bought ivrprime QTY 550 @ 82 now what to do should i wait or tomorrow exit yes one more thing ivrclinfra this is having some problem bcoz its not crossing @ 300
    when this stock is comming to its resistance point, that time only corection is going in the market give me some idea in brief not one sentance please....................

  15. CB Says:
    May 27th, 2009
    Posted at: 12:44 am

    Hi ibrahimnafeesaadil, hold IVR Prime.. it can touch 95 in short term.. yes.. IVRCL is facing some resistance at 300 and has support 257.. hold it. fundamentally a strong one and will do well in short term

  16. ibrahim Says:
    May 27th, 2009
    Posted at: 12:46 am

    today market fall what it is ,it is just intraday correction or bear are back

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