Ambika Cotton Breakout

akashbothra Updated   
1. Buy or Sell at your own risk
2. Don't risk more than 1%-2% of your capital as stop loss
3. Position Size formula:- Stop Loss/(Buy Price-Initial Stop Loss Price)
4. Either sell on initial stop loss hit or when closes below daily supertrend

After increasing quarterly sales by 31% and quarterly profits by 146% AMBIKCO given a gap up opening and ended near day high after a consolidation of 3 months. Volumes were 10 times higher than average. Buy with a stop below Rs. 2450.

Other Fundamentals: -

1. Main overseas clients are Quannitex Enterprise Corporatio, Pacific Textiles and Winnitex Investment Company
2. Main domestic customers are Arvind Mills, Raymond, Aashima Textiles and Morarjee
3. ACML specializes in manufacturing of premium quality compact and Eli Twist yarn. The company uses extra-long staple cotton in its yarn manufacturing by importing high-quality Giza and Pima cotton from Egypt and the US respectively
4. ACML has an established market leadership position in the industry
5. Borrowings came down to zero since Mar'20
6. Low debtor days of 8
7. FII holdings increased from 0.11 in Sep'21 to 2.30 in Dec'21
8. TTM Sales, OPM and TTM EPS increased hugely
9. Dividend Yield 1.28 % (consistent dividend payer since 2010)
10. Current ratio 9.50, Debt to equity 0.00, Int Coverage 107, FCF to CFO 67.5 %
Trade closed: stop reached


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