CMP: 185

Ambika Cotton Mills Ltd. manufactures and distributes yarn.

Ambika Cotton Mills is a 108 Crore penny cap stock. Its a low P/E stock with P/E as low as 2.40 with decent dividend yields of 1.63%. Liabilities are little on the higher side. But that's compensated by strong Revenue growth from 185 Crores to 326 Crores in the last 2 years. In the same period profits have picked up from 9 Crores to 42 Crores in the same period. NPM has picked up from 5% to 13% in the last 2 years which is a major positive. It has good support at 170. Buy for long term gains.