Recent Price Movement and Market Context
On 8 December 2025, Ambika Cotton Mills opened with a gap up of 2.43%, reaching an intraday high of Rs.1264. Despite this initial positive momentum, the stock closed at Rs.1220, representing a day-on-day decline of 1.13%. This closing price establishes a fresh 52-week low for the company, underscoring the persistent downward trend observed over the last nine sessions, during which the stock has recorded a cumulative return of -6.41%.
The stock’s current trading level is below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning indicates a broad-based weakness in price action over multiple time horizons.
In comparison, the broader market has shown relative resilience. The Sensex opened flat but later declined by 222.57 points, or 0.36%, closing at 85,402.27. Notably, the Sensex remains within 0.89% of its 52-week high of 86,159.02 and is trading above its 50-day moving average, which itself is positioned above the 200-day moving average, signalling a generally bullish trend for the benchmark index.
Long-Term Performance and Sector Comparison
Ambika Cotton Mills operates within the Garments & Apparels industry, a sector that has faced varied headwinds over the past year. The stock’s 1-year performance shows a decline of 23.75%, contrasting sharply with the Sensex’s positive return of 4.50% over the same period. This divergence highlights the stock’s underperformance relative to the broader market benchmark.
Over the last three annual periods, Ambika Cotton Mills has consistently lagged behind the BSE500 index, reflecting challenges in maintaining competitive growth and profitability within its sector. The stock’s 52-week high was Rs.1824, indicating a substantial reduction of approximately 33% from that peak to the current 52-week low.
Financial Metrics and Growth Trends
Examining the company’s financial trajectory over the past five years reveals a modest expansion in net sales, with an annual growth rate of 4.22%. Operating profit has followed a similar pattern, registering a growth rate of 3.90% annually during the same period. These figures suggest a relatively slow pace of growth in core business operations.
Profitability metrics show a return on equity (ROE) of 6.6%, which indicates a moderate level of efficiency in generating returns from shareholders’ equity. The company’s price-to-book value stands at 0.8, suggesting that the stock is valued at a slight premium compared to its book value, yet remains within a reasonable range relative to its peers.
Operating cash flow for the fiscal year reached Rs.129.05 crores, marking the highest level recorded in recent periods. Additionally, the operating profit to interest coverage ratio for the latest quarter was 7.87 times, reflecting a comfortable buffer to meet interest obligations. The company reported a profit after tax (PAT) of Rs.15.94 crores in the most recent quarter, the highest quarterly figure in recent times.
Balance Sheet and Dividend Yield
Ambika Cotton Mills maintains a low average debt-to-equity ratio, effectively at zero, indicating a capital structure with minimal reliance on debt financing. This conservative leverage position may provide some stability amid market fluctuations.
The stock currently offers a dividend yield of approximately 3%, which is considered relatively attractive within the Garments & Apparels sector. This yield reflects the company’s capacity to return cash to shareholders despite the subdued price performance.
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