Rs 35/Share Dividend Recommended: Are You Eligible For The Payout By This Textile Stock?

Based in Coimbatore, Southern India, Ambika Cotton Mills Limited (ACML) produces high-grade compact and elitwist cotton yarn for weaving and hosiery. The firm was founded in 1988, and it has five manufacturing facilities with a combined capacity of 1,08,288 spindles for knitting and compact spinning in Dindigul, Tamil Nadu.

Ambika Cotton Mills Dividend

"The Board of Directors have recommended payment of Final dividend of Rs.35/- (350%) per equity share ( face value of Rs.10 each) for FY 2023-24 subject to the approval of shareholders at the Annual general meeting," said Ambika Cotton Mills in a stock exchange filing.

Ambika Cotton Mills Financials

The company reported a net profit of Rs 205.79 crore in the March 2024 quarter up 10.51% from Rs. 186.22 crore in the March 2023 quarter. Its net profit stood at Rs. 16.09 crore in Q4FY24 down 11.25% from Rs. 18.13 crore in Q4FY23. EBITDA reached Rs. 34.21 crore in the quarter under review down 3.22% from Rs. 35.35 crore in the year-ago quarter.

Ambika Cotton Mills Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said, "AMBIKCO is currently trading at 1551.05 levels, exhibiting a sideways trading pattern within the range of 1500-1650 for the past 8 weeks. This prolonged period of consolidation indicates a well-defined support at the lower boundary of 1500 and a strong resistance near the upper boundary at 1650. The stock's proximity to its short-term (20 Day) and medium-term (50 Day) Exponential Moving Average (EMA) levels further corroborates the sideways movement observed on the daily chart. The sustained trading within this range suggests that AMBIKCO is in a phase of sideways move, where buying and selling pressures are balanced."

"Investors holding the stock from lower levels should maintain a trailing stop loss at 1500 levels to protect their gains, considering this is a critical support level. A decisive breakout above the 1650 resistance could signal the beginning of a new upward trend, potentially attracting fresh buying interest. Conversely, a breakdown below 1500 could lead to a downside correction. Therefore, monitoring these key levels is crucial for making informed investment decisions. Investors looking to enter the stock might consider waiting for a breakout above 1650 for a clearer indication of upward momentum or a dip towards 1500 for potential buying opportunities, provided the support holds," the analyst further added.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.