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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. ibrahim Says:
    May 27th, 2009
    Posted at: 12:55 am

    as ur advice friday esaroil ivrclinfra icsa videocon 75% of in all these stock i book profit monday they all gone up 3 t0 4 % but no probs whatever i got that is my luck .some of these stock iam holding for 2 to 3 month period so in this period can i get 30% to 40% profit

  2. CB Says:
    May 27th, 2009
    Posted at: 12:59 am

    Hi ibrahimnafeesaadil, markets likely to be positive till expiry..maybe some profit booking comes back after expiry. its good you booked profits in Videocon , ICSA, Essar..we cannot be sure of market direction and its always safe to book profits whenever one gets some.. they are good med term bets.. hold them for 2-3 months

  3. ibrahim Says:
    May 27th, 2009
    Posted at: 1:43 am

    cb what do think about voltas at this rate it is good or wait for some correction

  4. ibrahim Says:
    May 27th, 2009
    Posted at: 1:53 am

    ya cb you given me a near target of ivrprime 95 after 95 there is any chances of crossing 100 level

  5. Yusuf shaikh Says:
    May 27th, 2009
    Posted at: 8:51 am

    Good morning BiB B ,good to see asian market also goes high,today hoping bst

  6. CB Says:
    May 27th, 2009
    Posted at: 9:10 am

    Hi ibrahimnafeesaadil, as of now don't buy it.. facing resistance at 100..also wait till next week before buying stocks.. If markets remain positive IVR will see 100+

    Hi Yusuf shaikh, Yep :)

  7. rk Says:
    May 27th, 2009
    Posted at: 10:18 am

    hi cb yes the textile showing recovey, if industry holds, this stock will give good returns
    same way KPR mills i beleive shall give good returns( but no sellers now)

    May 31st, 2009
    Posted at: 8:11 pm


  9. CB Says:
    May 31st, 2009
    Posted at: 8:29 pm

    Hi rk, yes.. wait for a dip in KPR..


  10. Akki Says:
    June 2nd, 2009
    Posted at: 3:56 pm

    at what levels to enter the stock as of now and how how long?? whats the time duration needed?????:)

  11. CB Says:
    June 2nd, 2009
    Posted at: 4:08 pm

    Hi Akki, one can buy it now.. its a 3-4 month call..it can see 120+

  12. Akki Says:
    June 2nd, 2009
    Posted at: 6:47 pm

    Thanks got it any stop loss in the share?

  13. CB Says:
    June 2nd, 2009
    Posted at: 7:20 pm

    HI AKKi, no.. no sl.. just give it some time..

  14. ramsingh Says:
    June 2nd, 2009
    Posted at: 7:31 pm

    Hai CB!
    Today Ennore coke ltd., price to close above 35.05 level.Further what level we can exit.

  15. CB Says:
    June 2nd, 2009
    Posted at: 7:34 pm

    Hi ramsingh, it can touch 38.. hold it

  16. ramsingh Says:
    June 2nd, 2009
    Posted at: 7:40 pm

    Hai CB!
    Please suggest Ifci target and after 55 level how much we expected.
    And also Glory poly film - what is the short term and mid term target for these scripts.

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