Ambika Cotton Mills Ltd: Key Updates and Market Developments
Ambika Cotton Mills Ltd, a prominent player in the textiles, apparel, and luxury goods sector, has recently announced several key developments. The company, listed on the National Stock Exchange of India, is engaged in manufacturing compact and Eli twist cotton yarn for hosiery and weaving. Its operations include a significant installed spindle capacity and a knitting facility, with a focus on both domestic and international markets.
Dividend and AGM Announcements
On August 28, 2025, Ambika Cotton Mills Ltd filed the record date for dividend and book closure for its 37th Annual General Meeting (AGM) for the fiscal year 2024-25. The company announced a final dividend of Rs. 37 per equity share, subject to shareholder approval. The record date for the dividend and the book closure for the AGM is set from September 21 to September 27, 2025. The AGM is scheduled to take place on September 27, 2025.
In a related filing, the company also submitted the notice of the 37th AGM along with its annual report for FY 2024-25. The annual report and AGM notice have been sent to the Listing Department of the National Stock Exchange of India and BSE Limited for acknowledgment.
Additionally, a newspaper advertisement was filed on August 26, 2025, notifying members about the 37th AGM and requesting updates to email addresses and bank account details. This notice was published in Financial Express and Dinamani (Tamil) newspapers.
Market Impact of US Tariff Hike
The broader textile sector, including Ambika Cotton Mills Ltd, has been affected by recent US tariff hikes. On August 28, 2025, the US doubled tariffs on Indian textile imports, raising duties on textiles and garments to 50%. This move has led to a decline in share prices for several textile companies, with Ambika Cotton Mills Ltd experiencing a similar impact. The tariff hike has caused significant concern among investors, leading to a drop in textile shares by up to 3% in intraday trade.
The US tariff increase, effective from August 27, 2025, has prompted Indian textile hubs such as Tiruppur, Surat, and Noida to halt or scale down production due to the adverse impact on exports. This development follows an executive order by US President Donald Trump imposing an additional 25% duty on Indian imports, affecting garments and fabrics among other categories.
Despite these challenges, the Indian government has provided some relief by waiving an 11% cotton import duty to support textile exporters amid the tariff pressures.
Company Overview
Ambika Cotton Mills Ltd operates with a total installed spindle capacity of approximately 108,288 in a compact facility across four units and a knitting facility converting 40,000 kilograms of yarn per day into fabrics. The company has also installed approximately 27.4 megawatts of wind power capacity for captive consumption in its spinning segment. Its spinning plants are located in Kanniyapuram, Dindigul, and its windmills in Tirunelveli, Dharapuram, and Theni, all in Tamil Nadu.
As of August 25, 2025, the company’s close price was INR 1387.5, with a 52-week high of INR 1869 and a low of INR 1273.05. The market capitalization stands at INR 8,630,000,000, and the price-to-earnings ratio is 14.35.