Ambika Cotton Mills Limited (AMBIKCO) fair value: what the stock is really worth
As of Sep 25, 2026: fair value of Ambika Cotton Mills Limited ₹1,848, price ₹1,546, upside +19.5%, quality 64 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 27, 2026.
How to read this chart
60‑month range ₹1,029 – ₹2,514 · fair‑value band ₹1,337 – ₹2,509 · the ₹1,546 price screens below the ₹1,848 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 27, 2026.
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Ambika Cotton Mills Limited engages in the manufacturing and sale of cotton yarns, waste cotton, and knitted fabrics in India, Europe, Africa, North America, and other Asian countries.
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Ambika Cotton Mills Limited engages in the manufacturing and sale of cotton yarns, waste cotton, and knitted fabrics in India, Europe, Africa, North America, and other Asian countries. It operates windmills with an installed capacity of 27.4 MW in Tirunelveli, Dharapuram, and Theni in the State of Tamil Nadu; and roof top solar power with installed capacity of 8.33 MW in Dindigul and Kanniyapuram for renewable energy. The company serves the manufacturers of shirts and T-shirts. Ambika Cotton Mills Limited was incorporated in 1988 and is headquartered in Coimbatore, India.
Stock analysis
Ambika Cotton Mills Limited (AMBIKCO) currently trades at ₹1,546, while our model-based Fair Value estimate is ₹1,848, implying the stock looks roughly 16.3% undervalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of ₹2,376 per share, and 17 of the 26 models we run sit above the ₹1,546 price.
Bear case: the Dividend Discount group reads lowest at ₹377.79, and 9 of the 26 models stay below the price. Evidence for this calculation is high.
Scenario range: ₹1,337 (bear) to ₹2,509 (bull), the price of ₹1,546 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 64/100 (solid quality), in the Consumer Cyclical sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Ambika Cotton Mills Limited reported revenue of ₹7.8B in FY2026 versus ₹8.8B in FY2022, a compound −2.9%/yr. Reported net income was ₹716M in FY2026, compounding −20.6%/yr from FY2022.
Key figures
Market cap ₹9.9B (≈ $103M) · P/E ratio 12.4 · P/S ratio 1.13 · EPS (TTM) ₹125.05 · Dividend yield 2.4% · Net margin 9.2% · Return on equity 7.7% · Return on assets (EBIT) 15.3%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 51 out of 100 (medium confidence).
What moves the price
The share trades about 19% below its 52-week high and 37% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Consumer Cyclical peers we cover trades at −19% fair-value upside, at 20%, AMBIKCO screens cheaper than that median.
Fair Value models
Bear ₹1,337Fair Value ₹1,848Bull ₹2,509
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2026 figures (about 6 months old). Earnings retained since then (₹43.42 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.64/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+11.2%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−1.5%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+4.9%
Start year 2021 (pandemic). Over 10 years: +4.7% a year
Revenue growth 20 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+10.6%
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What shareholders gained per year (last 5 years), in INR ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+3.4%
Earnings growth per share plus dividend.
Earnings per share, growth per year+1.0%
Dividend (yield on the price)2.4%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.1.0% vs 3.7%, steady
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.14% → 12%
Start year 2021 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+8.7%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (India: IMF forecast 4.1% a year to 2030, 4.7% from 2016 to 2025) that is about +4.4% a year for the price.
Compare Ambika Cotton Mills Limited with another stock
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Textile Manufacturing · 341 stocks
Beats the industry median on 12/13 measures
Overall it ranks above its industry peers.
Valuation
Quality Score64 · Top 25%
Fair Value upside+19.5% · Above median
Profitability
Return on equity (TTM)7.7% · Above median
Return on assets5.2% · Top 25%
Net margin (TTM)9.2% · Top 25%
Operating margin (TTM)14.0% · Top 25%
Growth and dividend
Revenue growth57.8% · Top 25%
Dividend yield (TTM)2.4% · Above median
Valuation Multiplesvs Textile Manufacturing median · lower = cheaper
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Is Ambika Cotton Mills Limited (AMBIKCO) overvalued or undervalued?
As of Sep 27, 2026, our model estimates a fair value of ₹1,848 versus a price of ₹1,546, about +20% upside (undervalued).
What is the fair value of AMBIKCO?
Our model-based fair value for Ambika Cotton Mills Limited is ₹1,848 (as of Sep 27, 2026), built from audited fundamentals. The current price: ₹1,546.
What is the quality score of AMBIKCO?
Ambika Cotton Mills Limited has a Quality Score of 64/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Ambika Cotton Mills Limited (AMBIKCO)?
Our model-based price target is the fair value of ₹1,848 (as of Sep 27, 2026) from 26 valuation models. Cautious scenario ₹1,337, optimistic scenario ₹2,509. It is a calculation from audited fundamentals, not an analyst target.
What is the Ambika Cotton Mills Limited stock forecast for 2026?
Our models put fair value at ₹1,848, about +20% upside versus a price of ₹1,546 (undervalued). Cautious scenario ₹1,337, optimistic scenario ₹2,509. The calculation is refreshed regularly with new filings.
What is the revenue of Ambika Cotton Mills Limited (AMBIKCO)?
Ambika Cotton Mills Limited reported trailing-twelve-month revenue of about ₹7.8B (latest available figure, as of Sep 27, 2026).
Does Ambika Cotton Mills Limited pay a dividend?
Ambika Cotton Mills Limited currently shows a dividend yield of about 2.39% relative to its recent price (as of Sep 27, 2026).
What growth is priced into Ambika Cotton Mills Limited (AMBIKCO)?
For today's price to be fair in a discounted-cash-flow model, Ambika Cotton Mills Limited would have to grow free cash flow by +8.7 % per year for five years (discount rate 13.9 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +4.9 % per year. As of Sep 27, 2026.
What discount rate (WACC) does the fair value of AMBIKCO use?
Our models discount Ambika Cotton Mills Limited at 13.9 %: a base by market capitalisation (micro), damped by beta 0.46, country premium for India. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Ambika Cotton Mills Limited that is +8.7 % per year a year over ten years, using the same discount rate (13.9 %) and the same formula as our fair value.
How much growth has Ambika Cotton Mills Limited (AMBIKCO) delivered so far?
Over the past 5 years revenue at Ambika Cotton Mills Limited grew +4.9 % a year. The price currently implies +8.7 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Ambika Cotton Mills Limited (AMBIKCO) growing?
The median revenue growth in the sector is +2.3 % a year. That is the yardstick for the growth priced into Ambika Cotton Mills Limited (+8.7 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Ambika Cotton Mills Limited (AMBIKCO)?
The free-cash-flow yield on the price is 6.45 %: that much free cash flow Ambika Cotton Mills Limited produces per unit of market value. When it exceeds the discount rate of our models (13.9 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Ambika Cotton Mills Limited (AMBIKCO)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Ambika Cotton Mills Limited it is ₹1,848 per share (as of Sep 27, 2026), against a price of ₹1,546. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Ambika Cotton Mills Limited stock overvalued or undervalued in 2026?
As of Sep 27, 2026, AMBIKCO trades below its calculated fair value: price ₹1,546, fair value ₹1,848, a gap of about +20% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of AMBIKCO?
No. The price is what the market pays today (₹1,546); the fair value is what the company's own numbers justify (₹1,848). For Ambika Cotton Mills Limited the two are ₹301.85 per share apart. That gap is exactly why we show both numbers side by side.
How much is Ambika Cotton Mills Limited worth?
The market values Ambika Cotton Mills Limited at about ₹9.9B (market capitalisation, as of Sep 27, 2026). Per share that is ₹1,546; our models calculate a fair value of ₹1,848 per share.
What do the bullish and bearish scenarios say about AMBIKCO?
Our models span a range for Ambika Cotton Mills Limited: cautious scenario ₹1,337, base ₹1,848, optimistic ₹2,509 per share (as of Sep 27, 2026, price ₹1,546). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of AMBIKCO?
Ambika Cotton Mills Limited trades at a price-to-earnings ratio of 12.4 (as of Sep 27, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹1,848 is built from several models across several years. Other multiples: P/B 1.0, P/S 1.3, EV/EBITDA 7.2.
How solid is the balance sheet of Ambika Cotton Mills Limited (AMBIKCO)?
Balance-sheet figures for Ambika Cotton Mills Limited (as of Sep 27, 2026): return on equity 7.7%. They feed the Quality Score of 64/100, which measures business quality independently of the share price.
How far is AMBIKCO from its 52-week high?
Ambika Cotton Mills Limited trades at ₹1,546, about 19% below its 52-week high of ₹1,904 and 37% above the low of ₹1,125 (as of Sep 25, 2026). Distance from the high says nothing about value: that is what the fair value of ₹1,848 is for.
Which stocks are comparable to Ambika Cotton Mills Limited?
From the same area (Consumer Cyclical) we also value Tongkun Group, Shenzhou International Group, Inner Mongolia ERDOS Resources Co, K.P.R. Mill Limited, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Ambika Cotton Mills Limited stock attractive at the current price?
The data as of Sep 27, 2026: price ₹1,546, calculated fair value ₹1,848 (+20%), Quality Score 64/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of AMBIKCO calculated?
We run Ambika Cotton Mills Limited through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of ₹1,848, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.9 % above its aggregate fair value. Ambika Cotton Mills Limited currently trades 20 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Ambika Cotton Mills Limited (AMBIKCO)?
The closing price on Sep 25, 2026 was ₹1,546. Our model-based fair value is ₹1,848, about +20% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Ambika Cotton Mills Limited right now?
A fairly wide model range (₹1,337 to ₹2,509) leaves room in how you read the outcome. The price sits in the lower half of our model range, the side with the larger margin of safety. The data supports the verdict: every model runs on fully documented inputs.
Where does the earnings growth of Ambika Cotton Mills Limited (AMBIKCO) come from?
Earnings per share at Ambika Cotton Mills Limited grew +3.4 % a year from 2015 to 2026. Broken into its drivers: revenue per share +5.0 %, EBIT margin +2.7 %, tax rate −0.6 %, residual (interest, one-offs) −3.5 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Ambika Cotton Mills Limited
How large is the market capitalisation of Ambika Cotton Mills Limited (AMBIKCO)?
The market capitalisation of Ambika Cotton Mills Limited is ₹9.9B (≈ $103M). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Ambika Cotton Mills Limited (AMBIKCO)?
The price-to-sales ratio of Ambika Cotton Mills Limited is 1.13 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Ambika Cotton Mills Limited (AMBIKCO)?
Earnings per share at Ambika Cotton Mills Limited are ₹125.05 (price ÷ EPS = P/E 12.4). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Ambika Cotton Mills Limited (AMBIKCO)?
The dividend yield of Ambika Cotton Mills Limited is 2.4% (payout 29.6%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Ambika Cotton Mills Limited (AMBIKCO)?
The net margin of Ambika Cotton Mills Limited is 9.2% (fiscal year 2026). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Ambika Cotton Mills Limited (AMBIKCO)?
The return on equity (ROE) of Ambika Cotton Mills Limited is 7.7% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Ambika Cotton Mills Limited (AMBIKCO)?
On an EBIT basis the return on assets of Ambika Cotton Mills Limited is 15.3% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Ambika Cotton Mills Limited (AMBIKCO)?
The operating margin of Ambika Cotton Mills Limited is 14.0% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Ambika Cotton Mills Limited (AMBIKCO)?
Revenue at Ambika Cotton Mills Limited is growing +57.8% versus a year earlier (3y avg −1.5%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Ambika Cotton Mills Limited (AMBIKCO)?
Earnings per share at Ambika Cotton Mills Limited are growing +54.7% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Ambika Cotton Mills Limited (AMBIKCO) hold?
Ambika Cotton Mills Limited holds more cash than debt, ₹1.7B net (fiscal year 2026). The company holds more cash than debt, a safety cushion.
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