The company was incorporated as ‘Axita Cotton Private Limited’ at Ahmedabad on July 16, 2013, under the provisions of the Companies Act, 1956 vide Certificate of Incorporation issued by the Registrar of Companies, Gujarat, Dadra and Nagar Haveli. Consequent up on the conversion of the Company from Private Limited Company to Public Limited Company, the name of Company was changed to ‘Axita Cotton Limited’ and fresh Certificate of Incorporation consequent up on the conversion from Private Limited Company to Public Limited Company dated October 15, 2018 was issued by the Registrar of Companies, RoC–Ahmedabad.
To conduct a fundamental analysis of Axita Cotton Limited, several key factors should be considered. Please note that as an AI language model, my knowledge is based on information available up until September 2021, and I may not have access to the latest financial data or news about the company. Therefore, it’s always a good idea to verify the information and consult with financial professionals for up-to-date and specific advice. That said, here are some general aspects to consider when conducting a fundamental analysis:
- Business Overview: Understand the nature of Axita Cotton Limited’s business. Are they primarily involved in cotton production, processing, or trading? Assess their market position, competitive advantages, and growth prospects. Evaluate the company’s products, distribution channels, and customer base.
- Financial Statements: Review the company’s financial statements, including the income statement, balance sheet, and cash flow statement. Analyze key financial metrics such as revenue growth, profitability, liquidity, and debt levels. Pay attention to trends over multiple years to identify any patterns or potential risks.
- Revenue Sources: Identify the main sources of revenue for Axita Cotton Limited. Determine if they have diversified revenue streams or if they heavily rely on specific customers, markets, or products. Assess the company’s ability to maintain and grow its revenue base.
- Industry Analysis: Evaluate the cotton industry and its dynamics. Consider factors such as global cotton demand and supply, price trends, competition, and regulatory environment. Understand how Axita Cotton Limited fits into the industry and the opportunities and challenges it faces.
- Management Team: Assess the experience, track record, and integrity of the company’s management team. Look for information on their strategic vision, corporate governance practices, and their ability to execute plans effectively.
- SWOT Analysis: Conduct a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis for Axita Cotton Limited. Identify the company’s core strengths and competitive advantages, potential weaknesses or risks, growth opportunities, and external threats they may face.
- Future Outlook: Consider the company’s growth prospects and future outlook. Look for any expansion plans, new product launches, partnerships, or potential risks that may impact their performance. Understand the macroeconomic factors that could affect the cotton industry and Axita Cotton Limited specifically.
- Valuation: Determine the company’s valuation by comparing key financial ratios (such as price-to-earnings ratio, price-to-sales ratio, and price-to-book ratio) with industry peers. Consider other valuation methods like discounted cash flow (DCF) analysis to estimate the intrinsic value of the company’s stock.
Business area of Axita Cotton Private Limited:
The company is producing cotton bales and cotton seeds. The company is producing mainly two varieties of cotton bales namely Shankar-6 and MCU-5/MECH. The production facility of 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 products are sold majorily in the state of Gujarat, Rajasthan, Maharashtra and Madhya Pradesh. It 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.
Products
- Raw Cotton: Axita Cotton Limited produces raw cotton, which is the primary product of their business. Raw cotton refers to the unprocessed fiber obtained from cotton plants.
- Cotton Bales: The company processes the raw cotton into cotton bales. Cotton bales are compacted and tightly bound bundles of cotton fibers. These bales are standardized units of cotton that can be transported and traded more efficiently.
- Cottonseed: Along with cotton fibers, cotton plants also produce cottonseed. Axita Cotton Limited may offer cottonseed as a byproduct. Cottonseed can be further processed into cottonseed oil or used as feed for livestock.
- Cottonseed Oil: If the company has an oil extraction facility, they might produce cottonseed oil. Cottonseed oil is a cooking oil that is derived from the seeds of the cotton plant. It is commonly used in food processing and cooking applications.
- Cottonseed Cake: Cottonseed cake is another byproduct of cottonseed processing. It is the solid residue left after extracting oil from cottonseed. Cottonseed cake is used as animal feed due to its high protein content.
- Cotton Yarn: Axita Cotton Limited might also engage in cotton yarn production. Cotton yarn is made by spinning the cotton fibers into thread or yarn, which is used in various textile applications such as clothing, home furnishings, and industrial fabrics.
Major Events and Milestones:
- 2013: The Company was incorporated as Axita Cotton Private Limited.
- 2013: The Company acquired land admeasuring area of 9961 Square Meteres at Survey No. 324, 357, 358, Kadi Thol Road, Borisana, Kadi, Mahesana.
- 2013: The Company has installed 48 Ginning and Pressing machines which is having capacity of processing 87,600 MT/Per annum of seed cotton.
- 2018: The Company got converted in to Public Limited Company.
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