Cheap for a reason?

Apr 24, 2020

∙ Paid

First disclosure - I am long on Ambika Cotton Mills and sitting on a decent paper loss. As the market cap of the company has nearly halved from its peak in Jan 2018

If someone looks at the company today it will look optically cheap

- 7 times earnings - 75% of book value - 50% of Annual Sales

with decent first level economics

- Mid teen ROCE - Sales CAGR / P…

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