EN DE

Ambika Cotton Mills Limited (AMBIKCO) Fair Value & Analysis

Consumer Cyclical · IN · Market cap ₹9.9B

AC Ambika Cotton Mills Limited AMBIKCO · NSE
Price₹1,588
Fair Value₹2,092
Upside+31.7%
Quality64/100
Watch Ambika Cotton Mills Limited for free, get notified when fair value or trend changes. Watch for free
Healthy Growth
Thin margins · 9.2% net margin
Low debt · generates free cash flow
2.09% dividend yield
Ranks above peers (13/14)
Moderate moat 52/100
Evidence: High Range ₹1,446 – ₹2,936 Share as image

Fair value as of: Aug 2, 2026

From 26 valuation models · updated 11 days ago

Fair value updated Aug 2, 2026, revised from ₹2,465 to ₹2,092 (−15.1%) since Jun 29, 2026. Share price −8.5% over the past month.

A solid business, screening 32% undervalued on our models.

What matters now

  • Solid quality (64/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (₹1,446 to ₹2,936) leaves room in how you read the outcome.
Share this valuation: 𝕏 WhatsApp

Price vs Fair Value (5 years)

₹2,514 ₹764.96 Fair Value ₹2,092 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 2, 2026.

How to read this chart

60‑month range ₹764.96 – ₹2,514 · fair‑value band ₹1,446 – ₹2,936 · the ₹1,588 price screens below the ₹2,092 fair value. Dashed = 300-day average. As of Aug 2, 2026.

Full chart & analysis →

Which stocks are undervalued right now? Check free Discover now →

Analysis

Ambika Cotton Mills Limited (AMBIKCO) currently trades at ₹1,588, while our model-based Fair Value estimate is ₹2,092, implying the stock looks roughly 31.7% undervalued today. The Quality Score stands at 64/100 (solid quality), in the Consumer Cyclical sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Ambika Cotton Mills Limited generated revenue of ₹7.8B at a net margin of 9.2%. Revenue grew 57.8% year over year. It earns a return on equity of 7.7%. The balance sheet holds a net cash position of ₹1.7B. Fundamentals as of Aug 2, 2026

Our scenario range runs from ₹1,446 (bear case) to ₹2,936 (bull case); at ₹1,588, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 13% below its 52-week high and 44% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -3% fair-value upside, at 32%, AMBIKCO screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model 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. Evidence
Highest evidence
Growth DCF ₹1,373 ₹1,842 ₹2,479 80
Residual Income ₹1,348 ₹1,423 ₹1,536 76
Rev-Margin DCF ₹1,371 ₹2,002 ₹2,716 74
All 26 models by family
DCF Models
FCF DCF ₹1,355 ₹1,883 ₹2,643 38
Owner Earnings ₹787.65 ₹1,033 ₹1,387 31
5Y Revenue Exit ₹1,371 ₹1,999 ₹2,793 39
5Y EBITDA Exit ₹1,690 ₹2,589 ₹3,626 41
5Y P/E Exit ₹1,840 ₹2,866 ₹3,931 38
10Y Revenue Exit ₹1,322 ₹1,882 ₹2,618 36
10Y EBITDA Exit ₹1,552 ₹2,279 ₹3,233 37
10Y P/E Exit ₹1,646 ₹2,466 ₹3,458 35
Earnings-Based
Graham-Dodd ₹849.97 ₹2,491 ₹3,292 54
Lynch FV ₹519.73 ₹742.47 ₹965.22 50
PEG = 1.0 ₹519.73 ₹742.47 ₹965.22 46
EPV ₹1,390 ₹1,563 ₹1,712 59
Dividend Discount
Gordon GGM ₹324.92 ₹647.42 ₹980.38 70
DDM Multi-Stage ₹324.92 ₹514.46 ₹683.40 61
Multiples
P/E Multiple ₹2,062 ₹2,750 ₹3,437 63
P/S Multiple ₹1,228 ₹1,637 ₹2,046 58
P/B Multiple ₹1,594 ₹2,125 ₹2,656 55
EV/EBIT ₹2,502 ₹3,238 ₹3,974 53
EV/EBITDA ₹2,089 ₹2,688 ₹3,286 54
EV/Revenue ₹1,440 ₹1,931 ₹2,422 43
Asset-Based
NCAV (Graham) ₹833.46 ₹1,117 ₹1,667 50
Growth DCF
Growth DCF ₹1,373 ₹1,842 ₹2,479 80
Rev-Margin DCF ₹1,371 ₹2,002 ₹2,716 74
Economic Profit
Residual Income ₹1,348 ₹1,423 ₹1,536 76
ROIC Compounder ₹1,390 ₹1,563 ₹1,755 72
Growth Earnings
Growth-Adj P/E ₹1,663 ₹2,376 ₹3,089 68

Widest divergence: Growth Earnings (₹2,376) versus Dividend Discount (₹514.46). Highest evidence: Growth DCF (80).

Notify me when AMBIKCO reaches fair value

Free. You confirm by email (double opt-in) and can unsubscribe anytime in one click.

Key figures & financial health

Revenue (TTM) ₹7.8B
Revenue growth (YoY) +57.8%
Net margin 9.2%
Return on equity 7.7%
Free cash flow ₹571M FY2026
P/E ratio 13.8
More key figures
Operating margin 14.0%
EPS (TTM) ₹125.05
Dividend yield 2.1%
EPS growth (YoY) +54.7%
Net cash ₹1.7B FY2026

Figures from reported company fundamentals · as of Aug 2, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 64/100

Of which business quality 62 · Market factors (momentum, volatility) 61

Profitability 43
Margins and returns on capital today
Quality Growth 55
Are margins and returns improving?
Cashflow 50
Earnings quality: real cash, not paper profit
Fin. Strength 78
Balance sheet, leverage, solvency risk
Investment 73
Disciplined investing over empire-building
Low Volatility 77
Calm price path (market factor)
Momentum 54
Price trend over the last 3–12 months (market factor)
52W Momentum 56
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

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.

Full company description

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.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

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.

Growth Quality 64/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
₹7.8B
Latest YoY
+11.2%
Avg. growth/yr (3Y) 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.
−1.5%
Avg. growth/yr (5Y) 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.
+4.9%
Avg. growth/yr (20Y) 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.
+10.6%
Revenue −2.9%/yr
FY22 ₹8.8B
FY23 ₹8.2B
FY24 ₹8.2B
FY25 ₹7.0B
FY26 ₹7.8B
Net income −20.6%/yr
FY22 ₹1.8B
FY23 ₹1.1B
FY24 ₹630M
FY25 ₹657M
FY26 ₹716M
Character of growth · EPS growth decomposed (2015-2026) +3.4 % p.a.
Revenue per share +5.0 pp

of which total revenue +4.8 pp · buybacks/dilution +0.3 pp

EBIT margin +2.7 pp
Tax rate −0.6 pp
Residual (interest, one-offs) −3.7 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

Watch AMBIKCO: get an alert when its fair value changes →

Share or link this analysis
For bloggers & editors: embed code + live data

For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.

Cite: Fair Value Calculator (2026). "Ambika Cotton Mills Limited Fair Value". https://www.fairvalue-calculator.com/stock/AMBIKCO

Peer Group

Textile Manufacturing · 315 stocks

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.

Quality Score 64 · Top 25%
Fair Value upside +32% · Above median
Return on equity (TTM) 8% · Above median
Return on assets 5% · Top 25%
Net margin (TTM) 9% · Top 25%
Operating margin (TTM) 14% · Top 25%
Revenue growth 58% · Top 25%
Dividend yield (TTM) 2.1% · Above median

Valuation Multiples vs Textile Manufacturing median · lower = cheaper

P/E (TTM) 13.8× · Cheaper than median
P/B 1.03× · Cheaper than median
P/S (TTM) 1.26× · Pricier than median
P/FCF 0.2× · Cheaper than median
EV/EBITDA 7.2× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 76 · sector 7
FUTURE 100 · sector 0
PAST 31 · sector 15
HEALTH 100 · sector 95
DIVIDEND 42 · sector 34

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Textile Manufacturing stocks, each showing price versus our Fair Value estimate (as of Aug 2, 2026).

Stock Price Fair Value vs Fair Value
Shenzhou International Group 2313 HK$44.40 HK$75.65 +70%
Tongkun Group 601233 ¥23.56 ¥14.53 -38%
Inner Mongolia ERDOS Resources Co 600295 ¥12.04 ¥14.35 +19%
Far Eastern New Century Corporation 1402 27.55 TWD 28.72 TWD +4%
K.P.R. Mill Limited KPRMILL ₹1,083 ₹467.49 -57%
HMT (Xiamen) New Technical Materials Co 603306 ¥78.00 ¥11.85 -85%
Zhejiang Orient Holdings 600120 ¥5.18 ¥2.21 -57%
Vardhman Textiles Limited VTL ₹602.20 ₹437.53 -27%
Isiklar Enerji ve Yapi Holding IEYHO 174.20 TRY 323.84 TRY +86%
Bros Eastern.,Ltd 601339 ¥8.08 ¥7.87 -3%

Compare Ambika Cotton Mills Limited with another stock

Price, fair value, quality and upside side by side.

Free, no sign-up

Explore undervalued stocks

More undervalued Consumer Cyclical stocks →

All undervalued stocks TechnologyFinancial ServicesHealthcareConsumer CyclicalConsumer DefensiveCommunication ServicesIndustrialsEnergyBasic MaterialsReal EstateUtilities Deeply Undervalued StocksUndervalued Blue-Chip StocksUndervalued Small-Cap StocksUndervalued Dividend Stocks

Frequently asked questions

Is Ambika Cotton Mills Limited (AMBIKCO) overvalued or undervalued?
As of Aug 2, 2026, our model estimates a fair value of ₹2,092 versus a price of ₹1,588, about +32% (undervalued).
What is the fair value of AMBIKCO?
Our model-based fair value for Ambika Cotton Mills Limited is ₹2,092 (as of Aug 2, 2026), built from audited fundamentals. The current price is ₹1,588.
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 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 Aug 2, 2026).
What is the net profit margin of AMBIKCO?
The net profit margin of Ambika Cotton Mills Limited is about 9.2%, meaning it keeps roughly 9.2% of revenue as net income. Based on the latest reported figures.
Does Ambika Cotton Mills Limited pay a dividend?
Ambika Cotton Mills Limited currently shows a dividend yield of about 2.09% relative to its recent price (as of Aug 2, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

14 days Pro free · no card

Track Ambika Cotton Mills Limited and try Pro for 14 days

One email gets you 14 days of full Pro (review alerts, the 35,000+ stock screener, the diversification check) plus the monthly Top-25 report of the most undervalued quality stocks. No card, cancel anytime.

Zero risk: nothing is ever charged. After 14 days you decide whether to stay.