ScoreWhy is Axita Cotton Ltd ?
1
Poor long term growth as Net Sales has grown by an annual rate of -7.83% and Operating profit at -174.55% over the last 5 years
2
The company has declared Negative results for the last 6 consecutive quarters
- PAT(9M) At Rs -0.21 cr has Grown at -28.86%
- ROCE(HY) Lowest at -1.75%
- CASH AND CASH EQUIVALENTS(HY) Lowest at Rs 0.62 cr
3
Risky - Negative EBITDA
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -12.57%, its profits have fallen by -117.4%
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -12.57% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Axita Cotton should be less than 10%
- Overall Portfolio exposure to Garments & Apparels should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Garments & Apparels)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Axita Cotton for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Axita Cotton
-6.27%
-0.56
22.64%
Sensex
8.49%
0.44
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-14.26%
EBIT Growth (5y)
-51.97%
EBIT to Interest (avg)
12.17
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0.19
Sales to Capital Employed (avg)
10.43
Tax Ratio
37.76%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
5.01%
ROCE (avg)
21.18%
ROE (avg)
40.07%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
143
Industry P/E
20
Price to Book Value
5.20
EV to EBIT
185.03
EV to EBITDA
138.59
EV to Capital Employed
4.52
EV to Sales
0.79
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-7.49%
ROE (Latest)
3.65%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend18What is working for the Company
PBDIT(Q)
Highest at Rs 4.88 cr.
PBT LESS OI(Q)
Highest at Rs 4.04 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 5.46%
PAT(Q)
Highest at Rs 2.60 cr.
EPS(Q)
Highest at Rs 0.07
-12What is not working for the Company
NET SALES(Q)
At Rs 89.40 cr has Fallen at -39.2% (vs previous 4Q average
ROCE(HY)
Lowest at -1.75%
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 0.62 cr
Loading Valuation Snapshot...
Here's what is working for Axita Cotton
Operating Profit (PBDIT) - Quarterly
Highest at Rs 4.88 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 4.04 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 5.46%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit After Tax (PAT) - Quarterly
Highest at Rs 2.60 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 0.07
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Axita Cotton
Net Sales - Quarterly
At Rs 89.40 cr has Fallen at -39.2% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 146.97 CrMOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 0.62 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
