5-Stage ROE TreeSector: Textiles - Non Apparel

Ambika Cotton Mills Limited (AMBIKCO) DuPont ROE Analysis

Deconstructing Return on Equity into Operating Profitability, Asset Efficiency, Tax Retention, and Financial Leverage.

Return on Equity (ROE)

7.5%

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5-Stage DuPont Decomposition Framework

1. Tax Burden75.0%

Net Profit / EBT (Tax Efficiency)

2. Interest Burden94.0%

EBT / EBIT (Debt Drag)

3. Operating Margin9.2%

EBIT / Revenue (Pricing Power)

4. Asset Turnover0.71x

Revenue / Total Assets

5. Equity Multiplier1.16x

Total Assets / Net Worth

Mathematical Formula: ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Leverage

Implied ROE = 7.5%

DuPont ROE Benchmark vs Sector Peers (Textiles - Non Apparel)

Sorted by Market Cap

Company	P/E Ratio	P/B Ratio	Market Cap (₹ Cr)
★ Ambika Cotton Mills LimitedActive	13.11	0.98	0
Ashima Limited(ASHIMASYN)	—	1.30	0
Shree Tirupati Balajee Agro Trading Company Limited(BALAJEE)	—	—	0
Amarjothi Spinning Mills Limited(AMARJOTHI)	11.51	0.55	0
Addi Industries Limited

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Frequently Asked Questions: Ambika Cotton Mills Limited DuPont ROE

What is the DuPont Analysis of Ambika Cotton Mills Limited?▼

DuPont Analysis breaks down Ambika Cotton Mills Limited's Return on Equity (7.5%) into core operational and financial drivers: Tax Burden (75.0%), Interest Burden (94.0%), EBIT Margin (9.2%), Asset Turnover (0.71x), and Financial Leverage (1.16x).

Is Ambika Cotton Mills Limited's ROE driven by operational efficiency or debt leverage?▼

With a Debt-to-Equity of 0.19x and a Financial Leverage multiplier of 1.16x, Ambika Cotton Mills Limited's ROE is predominantly driven by core operating profitability and pricing power (high quality earnings).

How does AMBIKCO's ROCE compare to its ROE?▼

Ambika Cotton Mills Limited generates a Return on Capital Employed (ROCE) of 9.5% versus an ROE of 7.5%, indicating efficient total capital utilization across both equity and debt capital.

For informational and educational purposes only. Not investment advice. Data may be delayed or incomplete. Consult a SEBI-registered investment adviser before making investment decisions.