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Axita Cotton
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Axita Cotton Limited was incorporated as private limited company with the name 'Axita Cotton Private Limited' at Ahmedabad on July 16, 2013. Consequent up on the conversion of the Company from Private Limited Company to Public Limited Company, the name of the Company was changed to 'Axita Cotton Limited' on October 15, 2018.
Before incorporating the company, the Promoters, Mr. Nitinbhai Govindbhai Patel and Mr. Amitkumar Govindbhai Patel along with other relatives started business under a Partnership Firm named, Aditya Oil Industries ('firm') in the year 2007. It was formed to start business of production and trading of Seed cotton ('Kapas'), Cotton Seed, Cotton Seed Oil, Cotton cake etc and for which land admeasuring area of 5708 Square Meters was acquired at Chattral, Kadi Road, Mehsana. There were 6 oil expeller installed for producing cotton seed oil in Aditya Oil Industries and the firm has an annual capacity of producing approximately 3153.6 MT/ Per annum of cotton seed oil. After two years, firm was successful in making good profits from production and selling cotton seed oil, promoters expanded business by adding corn oil to their product portfolio by installing machineries for corn oil production in the same space of land. In the year 2011, firm acquired land adjacent to existing land at Kadi and set up the cotton Ginning and Pressing Plant, having installed capacity of processing 26280 MT/ Per annum of seed cotton.
After gaining experience of 2 years in cotton industry, the promoters acquired land admeasuring area of 9961 Square Meteres at Survey No. 324, 357, 358, Kadi Thol Road, Borisana, Kadi, Mahesana and floated the company in the year 2013. The company was established with the main aim of conducting business of Ginning and Pressing of seed cotton ('Kapas'). The Company has installed 48 Ginning and Pressing machines which is having capacity of processing 87,600 MT/Per annum of seed cotton. This plant is equipped with modern and automatic plant and machinery.
The Company is producing cotton bales and cotton seeds. It is producing mainly two varieties of cotton bales namely Shankar-6 and MCU-5/MECH. The production facility of the Company is situated at Kadi in Mahesana District of Gujarat state which is close to the rich cotton growing areas of Maharashtra, Saurashtra and other regions of Gujarat. The Company is also engaged in the business of trading of Kapas, cotton bales and cotton seeds. It is also doing ginning and pressing of Kapas on job work basis. It is ISO 9001:2015 certified company by OCI (Optimum Certifications INC.). It is also member of Better Cotton Initiatives (Independent Organization) which promotes better standards in cotton farming and practices across various countries. The Company is also registered under Textile Certification Global Organic Textile Standard (GOTS) Standard.
Then after in 2015, under leadership of one of the Promoter - Mr. Kushal Nitinbhai Patel started exporting its products through merchandise exporters. From Financial year 2016-2017 onwards, the company also commenced exporting its products directly to few countries namely Pakistan, Bangladesh and Vietnam. During the FY 2016, the promoters again floated a new private limited company named, Axita Exports Private Limited ('AEPL'), a group company, which was incorporated with the aim of exporting of cotton bales to various countries. AEPL exports cotton bales in Bangladesh, Vietnam, China and Pakistan, purchased from Axita Cotton and also exports locally purchased cotton bales from other suppliers.
Axita Cotton share price reflects investor sentiment toward the company and is impacted by various factors such as financial performance, market trends, and economic conditions. Share price is an indicator which shows the current value of the company's shares at which buyers or sellers can transact.
Market capitalization of Axita Cotton indicates the total value of its outstanding shares. Marketcap is calculated by multiplying share price and outstanding shares of the company. It is a helpful metric for assessing the company's size and market Valuation. It also helps investors understand how Axita Cotton is valued compared to its competitors.
Axita Cotton PE ratio helps investors understand what is the market value of each stock compared to Axita Cotton 's earnings. A PE ratio higher than the average industry PE could indicate an overvaluation of the stock, whereas a lower PE compared to the average industry PE could indicate an undervaluation.
The PEG ratio of Axita Cotton evaluates its PE ratio in relation to its growth rate. A PEG ratio of 1 indicates a fair value, a PEG ratio of less than 1 indicates undervaluation, and a PEG ratio of more than 1 indicates overvaluation.
Return on Equity (ROE) measures how effectively Axita Cotton generates profit from shareholders' equity. A higher ROE of more than 20% indicates better financial performance in terms of profitability.
Return on Capital Employed (ROCE) evaluates the profitability of Axita Cotton in relation to its capital employed. In simple terms, ROCE provides insight to investors as to how well the company is utilizing the capital deployed. A high ROCE of more than 20% shows that the business is making profitable use of its capital.
Total debt of Axita Cotton shows how much the company owes to either banks or individual creditors. In simple terms, this is the amount the company has to repay. Total debt can be a very useful metric to show the financial health of the company. Total debt more than equity is considered to be a bad sign.
The Debt-to-Equity (DE) ratio of Axita Cotton compares its total debt to shareholders' equity. A higher Debt to Equity ratio could indicate higher financial risk, while a lower ratio suggests that the company is managing its debt efficiently.
CAGR shows the consistent growth rate of Axita Cotton over a specific period, whether it is over a month, a year, or 10 years. It is a key metric to evaluate the company’s long-term growth potential. Main metrics for which CAGR is calculated are net sales, net profit, operating profit, and stock returns.
Technical analysis of Axita Cotton helps investors get an insight into when they can enter or exit the stock. Key components of Axita Cotton Technical Analysis include:
There are usually multiple support levels, but the main support levels for a stock are S1, S2, S3. Support levels indicate price points where stock might get support from buyers, helping the stock stop falling and rise.
There are usually multiple resistance levels, but the main resistance levels for a stock are R1, R2, R3. Resistance levels represent price points where Axita Cotton shares often struggle to rise above due to selling pressure.
Dividends refer to the portion of the company’s profits distributed to its shareholders. Dividends are typically paid out in cash and reflect Axita Cotton ’s financial health and profitability.
Bonus shares are usually given by companies to make the stock more affordable, increase liquidity, boost investor confidence, and more.
Stock split increases the number of its outstanding shares by dividing each existing share into multiple shares. When the company offers a stock split, the face value of the stock reduces in the same proportion as the split ratio.
The financials of Axita Cotton provide a complete view to investors about its net sales, net profit, operating profits, expenses, and overall financial health. Investors can analyze financial data to assess the company’s stability and also understand how the company has been growing financially.
The profit and loss statement of Axita Cotton highlights its net sales, net profit, total expenditure, and operating profits in the current financial year. This Profit and Loss statement is crucial for evaluating the profitability and financial stability of Axita Cotton .
The balance sheet presents a snapshot of Axita Cotton ’s assets, liabilities, and equity of shareholders, providing insights into the financials of the company.
Cashflow statements track the company's cash inflows and outflows over a period. It is an essential tool for understanding how well the company manages its liquidity and finances.
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