Axita Cotton ltd business daitels
Axita Cotton Ltd. produces cotton bales and cotton seeds. The company mainly produces two varieties of cotton: Shankar-6 and MCU-5/MECH.
Axita Cotton Ltd. also deals in cotton bales and cottonseed. It also does the work of pressing cotton. Axita Cotton Limited was earlier a private limited company, but in 2018, the company was made public limited.
If we have a look at the financial condition of the company, then there is good growth in sales year after year. The company's sales have increased from Rs 123 crore to Rs 823 crore in the last five years.
But the net profit margin of the company is only 2%, which can be a matter of concern for the company. By the way, in the last five years, the net profit of the company has increased from Rs 1 crore to Rs 15 crore.
Axita Cotton ltd company debt
The company's management has tried to reduce the company's debt to a great extent in the last few years. At present, the company has a debt of Rs 6 crore, while it also has a cash reserve of Rs 22 crore. That's why you can also call the company almost debt-free.
Looking at the performance of Axita Cotton Ltd. in the last five years and seeing the increasing demand for the company's products, the company can be expected to perform well in the future.
If you like the information given by us, then continue reading the post. Further, in this article, through the fundamentals of the company and the technical analysis of the company's stock, we will try to estimate what could be the axita cotton stock price forecast in the future.
Axita Cotton share price target 2023
If we talk about the axita cotton share price target of 2023, then a good rally is being seen in the company's stock at this time, but in the coming time, profit booking from the upper levels can also be seen in the company's stock. due to which the price of the company's stock may also come up and down.
Axita Cotton Ltd. has received two orders from Bangladesh worth $2.5 million for Indian Ra-Cotton. due to which there will be a tremendous jump in the sales of the company in the coming time and due to which the Axita Cotton share price target in 2023 can be seen from Rs. 55 to Rs. 60.
Although the market cap of the company is very low, operators are also seen operating the akhita cotton stock. And when this type of penny stock falls, small investors like us face a lot of difficulty selling our stocks because there are huge volumes of sell orders and the stock keeps going down every day.
If there is a downtrend in the stock, then according to the chart analysis of the stock, the price of the stock can go from Rs. 33 to Rs. 20.
Axita Cotton share price target 2024
Only 30% of the company's total revenue comes from India, and the remaining 70% comes from exports. The demand for the company's products is increasing in foreign countries. The company exports its products to countries like China, Vietnam, Indonesia, Thailand, Bangladesh, and Pakistan.
The company's exports to foreign countries are continuously increasing. The company used to get 50% of its revenue from exports in 2020, which has now increased to 70%. The increasing demand for the company's products in foreign countries can be considered good news for the company and its shareholders.
If we talk about the axita cotton share price target for 2024, then due to increasing sales growth, Axita Cotton share price target can go up to Rs 75 in 2024. If the stock hits this target, then you can hold the company's stock for another price target of Rs. 80.
Axita Cotton share price target 2025
Along with the production of cotton seeds, the company also trades in cottonseed by processing cotton bales. In the coming months, the company's management may also be seen adding some new products to its product portfolio.
In the coming time, the company management will be seen producing other quality cotton seeds as well. Presently, the company produces 87600 MTPA per year and is increasing its production year by year.
If we talk about Axita Cotton share price target 2025, then the company's sales have seen a tremendous jump in the last five years due to the constant efforts by the company management to increase the production capacity of its products.
Due to the efforts of the company management and the possibility of good growth in the company's business model in the future, the Axita Cotton share price target in 2025 can be seen in the range of Rs 110 to Rs 125 amid market volatility.
Axita Cotton share price target 2030
If we talk about the future share price target of the axita cotton stock in 2030, then the demand for cotton and cotton products will be seen increasing in the coming years. Due to this, good growth will be seen in the sales of the company.
The company's business is doing well in India as well as abroad, and the company will see continuous good orders from abroad. If the company's management is successful in improving its OPM in the coming years, then there can be a good increase in the net profit of the company.
The company is currently looking to be a strong company, both fundamentally and financially, and the promoter's holding of 72.37% in the company is also looking very good. At present, the company's business is mostly limited to Gujarat and Maharashtra, but in the future, the company's management will be seen working on plans to spread its business across the country.
If we talk about the future share price target of the axita cotton stock, then in the long run, the Axita Cotton share price target can range from Rs 210 to Rs 240.
Is it the right time to buy axita cotton stock?
Presently, the stock of the company is trading around its high price, and a good rally has been seen in the stock of the company in the last six months, due to which the P/E ratio of the company's stock has reached 75.6 and the stock is trading at a premium to its book value price of Rs 2.14.
If you are planning to invest in the company's stock for a long time, then you can wait for a slight decline in the stock. At present, the market cap of the company is very low, and operators are often seen operating this type of penny stock, hence the company's stock may see a fall after a good rally.
FAQS
1. What is the market cap of the company?
At the time of writing this article, the market cap of the company was hovering around Rs 500 crore.
2. What are the ROE and ROCE of the company?
The ROE of the company is 49.5%, and the ROCE is 58.7%.
3. Does the company also offer dividends to its shareholders?
The company also offers dividends to its shareholders, but the dividend yield is very low. The dividend yield of the company is 0.09%.
4. What is the face value and book value of the company's stock?
The face value of the company's stock is Rs 1, and the book value price is Rs 2.14.
5. What is the promoter's stake in the company?
Promoter holding in the company is 72.37%, and FIIS holding is 10.93%.
Friends, we hope that the information given in this article will definitely help you understand the company's business model and future share price target. For more information about the company, you can also visit the company's website at www.axitacotton.com.
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