Ambika Cotton Mills


(Santoshmk) #624

Q3 and nine month results

Looks decent to average to me.


(Growth_without Debt) #625

What will be impact of following factor on Ambika considering >80% of total sales from export -

(1) Stronger INR against US $ (Forex loss)
(2) Threat of Trump on imposing import duty on products imported from India
(3) overall lower demand of cotton yarn


(Vishal Agrawal) #626

Its not clear from the article if cotton yarn is one of the products covered under GSP.


(Chandragupta) #627

Ambika exports were 57% last year and exports to North America just 3%. Not sure where you got the 80% figure.


(Kumar Saurabh) #628

Approx 45-55% export has happened in last 5 years as a range. Bulk of export happens to Asia and to some extent to Europe if a remember. Here is a small extract from one of notes I had posted few months back “Geographical distribution of revenue includes 50% domestic, 46% APT and 4% Europe where in 2016-17 Europe showed 40% Yoy growth, 10 % growth in domestic and 5% degrowth’m API business”. So, I dont see how you got first 80% and number and second , its export dependence on USA. Could you highlight source of information?


(sarthak kumar) #629

Hello,

I hold Ambika cotton. I have confidence in the management, but there seem to be very few updates on the company. Don’t you think that while some promoters market their companies excessively, Ambika Cotton is on the other extreme.

Also, could you suggest where I could get more updates on the company.

Thanks


(Vivek Mashrani, CFA) #630

Sarthak,

This is very typical for such dull and boring businesses, particularly when management doesn’t like to come on media.

However, they have been pro-actively providing updates on capex plans, utilization etc. in the quarterly results. You can also write to management and they generally reply quickly (I had asked them couple of questions earlier and they had published press release for benefit of other shareholders).

Alternatively, you can go to AGM and interact with them to understand various aspects.

Disclaimer: Invested


(Kumar Saurabh) #631

Adding to Vivek’s point , I would like to highlight this point that more than count of update, the quality of update n the relevance of information also matters. What I want to highlight is in comparison to lot of coloured PR driven annual reports with big jargons n filings on some petty news etc, what I ve seen in those brief 100 pages of AR , Ambika provides lot of qualitative n operational information around product quantities , price , raw material quantities , price , execution n CapEx plan etc . Some of these information points are very useful to connect operational data with financial data to bring the story out. Many small size companies miss these important aspects . So, though yes, they are not active on concalls n regular updates , they do provide some really useful stuff in AR n as Vivek said , feel free to write to them.
One more thing which has helped me is going through peer concalls like Vardhman to get sense of industry at least if not specific to Ambika . We can always be hopeful and may be in AGM can request for concalls as suggestion