Ambika Cotton soars on Reliance stake

DALAL STREET SPIKES

The share price of Ambika Cotton rose by 6.79 per cent and closed at Rs 140.05 per share. The scrip opened at Rs 130 and after announcement of hike in Reliance Capital Asset Management stake in the company, it touched to day's high of Rs 142.

Reliance Capital acquired 4,130 shares from the secondary market, taking its stake to 4. 654 per cent. Ambika Cotton is engaged in the manufacture of premium quality Cotton Yarn for Hosiery, and high quality cotton shirting.

The company is an established player in the international and domestic yarn market. The company recorded net sales of Rs 104.9 crore, as against Rs 108.48 crore. net sales for the twelve month ended FY06.

Net profit for the nine months ended December 2006 increased to Rs 22.2 crore, as against the whole year profit of Rs 18.97 crore last year. The stock is trading at P/E of 4.23 on FY06 earnings.