U.S. Markets closed

Ambika Cotton Mills Limited (NSE:AMBIKCO): A Fundamentally Attractive Investment

Simply Wall St

Ambika Cotton Mills Limited (NSE:AMBIKCO) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of AMBIKCO, it is a financially-sound , dividend-paying company with a a great track record of performance. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Ambika Cotton Mills here.

Flawless balance sheet with proven track record and pays a dividend

AMBIKCO is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that AMBIKCO manages its cash and cost levels well, which is a crucial insight into the health of the company. AMBIKCO's has produced operating cash levels of 0.3x total debt over the past year, which implies that AMBIKCO's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

NSEI:AMBIKCO Income Statement, April 18th 2019

For those seeking income streams from their portfolio, AMBIKCO is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 3.1%, making it one of the best dividend companies in the market.

NSEI:AMBIKCO Historical Dividend Yield, April 18th 2019

Next Steps:

For Ambika Cotton Mills, I've put together three important aspects you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for AMBIKCO’s future growth? Take a look at our free research report of analyst consensus for AMBIKCO’s outlook.
  2. Valuation: What is AMBIKCO worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether AMBIKCO is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of AMBIKCO? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.