The conventional cotton industry has harmful impact on environment as its production involves use of chemicals, fertilizers due to this organic cotton industry is developing very fast as public know that conventional cotton production can damage environment at huge scale. In 2020, the market size of cotton at worldwide level was valued at $1.3 billion and it is projected to reach $2.5 billion by 2025.
There are many reasons due to which organic cotton industry is increasing. First, organic cotton is grown naturally and does not involve use of pesticides and fertilizers which can contaminate water and affect health of humans. Second, if farming of organic cotton is implemented it helps to prevent soil and water pollution which are very important natural resources. Third, the growth of organic cotton is very beneficial for farmers as they are paid heavy prices for their crops and it safeguards the health of farmers and their communities.
The production of organic cotton shows positive impact on environment and farmers. Moreover, there are many hurdles that must be highlighted. One issue is that organic cotton is costly, which becomes troublesome for some brands and retailers to provide organic cotton products at reasonable price. Another concern is that there is shortage of organic cotton. The worldwide demand of cotton is more than its supply, which leads to scarcity and fluctuations in price. Though, there are many challenges the cotton indutsry is on positive track. As consumer requirements increases, the cotton industry will also expand. This will help to assure that organic cotton becomes main choice for public once the benefits of organic cotton are understood by them. The demand of organic cotton is growing by helps to enhance soil fertility, preservation of water, helps to reduce air pollution, and protect health of farmers by staying away from pesticides. It also helps in protecting climate.
The Axita Cotton Ltd started its operations in 2013 and is one of the top producer and exporter of high quality cotton. The company commenced its business in 2007 as manufacturer and exporter of cotton seed oil as partnership firm known as “Aditya Oil Industries”. Additionally, as company generated good profits, the new company was established on 16th July, 2013 as “Axita Cotton Private Limited”. After 5 years, on October 2018, a fresh Certificate of Incorporation was issued for converting private limited company to public limited company and company name was “Axita Cotton Limited”.
The manufacturing plant of company is located at Kadi in Mehsana district of Gujarat. The factory is located close to cotton producing areas of Saurashtra and other areas of Gujarat, encourages us to procure one of the best quality raw materials and assure best quality of products. The company is proud to be member of Better cotton Initiatives, a non-profit program at worldwide level ensures proper practices followed in cotton farming. The connection with this program assures that we are commited to sustainability, quality, and genuine business practices which is highlighted by Global Organic Textile Standards (GOTS) and the Organic Content Standards (OCS) cerifications.
Visiona and Mission of company
Vision – At Axita Cotton, the motive of company is to build the road for farming methods which can survive for long time and carbon-neutral. The role of the company is to identify the result of climate improvement and has lot of interest by making contribution to preserve future by accurately working to reduce carbon pollutions.
The purpose is to utilize very less chemicals, renewable energy, preserve the land with techniques such as usage of organic fertlizers, no-till farming, cover cropping, crop rotation to manage proper environment friendly approach. the company has strong determination to fulfill the goal to expand the network and export our products, ideals to many countries.
Mission – Implementing organic rules and framework for production of cotton to encourage the better health of consumers and farmers.
Mastering sustainable growth that protects the environment and helps to protect greener and healthy future.
Axita Cotton Ltd – Past Journey
In FY 2013-14, the company was started as private limited company and the production of cotton began.
In FY 2015-16, the company entered into organic cotton sector and started exporting its first product.
In FY 2018-19, the company’s turnover reached Rs 100 crores and in the same year converted into public limited company. The company went for IPO and was listed on Bombay Stock Exchanges (BSE) with generating sales of Rs 200 crores.
In year 2020, the revenue received from exports was Rs 200 crores and stepped into Sustainable Cotton Farming.
In FY-21, the company made amazing achievement by generating revenue of Rs 500 crores from selling organic cotton. In year 2022, the company introduced cotton yarn to its business for expansion purpose. The company attained highest revenue in 2022 of Rs 823 crores.
Investing in growth and efficiency
At present, the manufacturing plant of the company is located in Kadi in Mehsana district of Gujarat and its operations are done for 8 months in a year. The success of company depends on its ability to fulfill customer requirements. The company is making efforts to take maximum advantage of production capacity and can reach at huge level.
The company is smart investing in infrastructure, technology, reducing downtime, safety precausions, rising production capacity, properly managed accounts.
In order to safeguard hurdles faced in production and fulfill the rising demands, the company is making efforts to improve supply chain to assure proper availability of raw materials and findihed product distribution to customers in systematic way.
In Axita Cotton, the first importance is given to employees and their families. latest machinery is integrated with safety gear equipment that will encourage huge workloads while ensuring safety of labour.
Moreover, the company will take steps to provide support and safety to employees family. This includes offering health related services and supporting children by providing education.
Business highlights
ERP software upgrade – The data received from ERP software is very useful as it helps to know closing inventory, purchase, sales, net profit, loan outstanding in proper way.
Insurance of employee – The company provides insurance cover to employees to protect from any unpredictable events may happen in future.
Leader in managing environment – The company has reduced carbon footprint by utilizing energy e client machinery and make sure to use resources properly. The steps take by company to protect environment is helpful for environment and also becomes top leader in industry.
No accidents or injuries – The company carries safety programs to spread awareness regarding use of machinery and provide safe atmosphere for employees.
Debt free – In past 2 years, the Axita Cotton has properly manage debt structure without any issue. This helps stakeholders and company to protect future.
Shareholding pattern
Promoters
62.77%
FIIs
0.52%
Public
36.71%
Axita Cotton Ltd – Revenue and net profit
Particlulars
FY-2024 ( In crores)
Sales
1102
Expenses
1075
EBIDTA
27
other income
2
interest
1
depreciation
1
Profit before tax
27
-tax (%)
(25%)
Net profit
20
EPS in Rs
0.78
Axita Cotton Ltd – Watch Full Video
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Axita Cotton Ltd Share Price Target – 2024 to 2040
Year
Minimum price (Rs.)
Average price (Rs.)
Maximum price (Rs.)
2024
22.15
23.74
25.34
2025
26.35
28.31
30.26
2026
31.70
34.63
37.56
2027
39.42
40.88
42.35
2028
45.46
47.36
49.25
2029
51.08
54.88
58.67
2030
65.71
69.08
72.45
2040
263
271
278
Axita Cotton Ltd Share Price Target – 2024
If market faces bearish sentiments, the minimum projected price is anticipated to reach Rs 22.15. The average trading price is projected to hit Rs 23.74 at the end of the year. If market observes bullish signals, the maximum forecasted price is expected to reach Rs 25.34. The main contributor to India’s economy is cotton.
Axita Cotton Ltd Share Price Target – 2025
If market observes downward trends, the minimum projected price is estimated to reach Rs 26.35. The average trading price is projected to hit Rs 28.31 at the end of the year. If market observes upward trends, the maximum projected price is estimated to reach Rs 30.26. As the population will grow in future, the demand of clothes will increase and this will have impact on increase in demand of cotton.
Axita Cotton Ltd Share Price Target – 2026
If market faces bearish sentiments, the minimum projected price is estimated to reach Rs 31.70. The average trading price is projected to hit Rs 34.63 at the end of the year. If market observes bullish sentiments, the maximum projected price is estimated to reach Rs 37.56. The biggest producer of cotton is India, out of which total global production 23% is produced in India. The Indian cotton industry provides help to 6 crores people in country. The total production of cotton in FY 23-24 is 30.6 million bales.
Axita Cotton Ltd Share Price Target – 2027
If market observes downward signals, the minimum forecasted price is expected to hit Rs 39.42. The average trading price is forecasted to reach Rs 40.88 at the end of the year. If market observes bullish sentiments, the maximum projected price is anticipated to hit Rs 42.35. Cotton is easily exported from India, the main countries which purchase cotton from India are Bangladesh, China, US. The cotton is very crucial source for foreign exchange in India. The cotton industry provides huge employment after agriculture and it ranks second in providing job.
Axita Cotton Ltd Share Price Target – 2028
If market faces bearish sentiments, the minimum projected price is estimated to reach Rs 45.46. The average trading price is projected to hit Rs 47.36 at the end of the year. If market faces bullish signals, the maximum projected price is estimated to reach Rs 42.35. If company focuses to increase its turnover then its is possible that business of company may increase. The cotton industry has seen huge hike due to increase in export and demand from people.
Axita Cotton Ltd Share Price Target – 2029
If market faces bearish sentiments, the minimum projected price is anticipated to reach Rs 51.08. The average trading price is projected to hit Rs 54.88 at the end of the year. If market observes bullish sentiments, the maximum predicted price is anticipated to reach Rs 58.67. Cotton is one of the amazing discovery made by humans and it is available anywhere in world. The cotton industry generates huge variety of products such as home furnishings, clothes, textiles.
Axita Cotton Ltd Share Price Target – 2030
If market faces downward sentiments, the minimum projected price is expected to reach Rs 65.71. The average trading price is projected to hit Rs 69.08 at the end of the year. If market observes bullish sentiments, the maximum projected price is anticipated to hit Rs 72.45. Cotton is one of the most crucial fibre used in the whole world. The market size of cotton is anticipated to hit $50.22 billion by 2029. As per latest reports of RBI, exports of cotton in India crossed USD 13.5 billion.
Axita Cotton Ltd Share Price Target – 2040
If market faces bearish sentiments, the minimum projected price is anticipated to hit Rs 263. The average trading price is projected to hit Rs 271 at the end of the year. If market observes bullish sentiments, the maximum predicted price is estimated to hit Rs 278. If company reduces its debt and focus more on social media platforms it is possible that business of company will increase. The company should concentrate more in India as there are many regions which needs cotton bales.
FAQs
Q1) Who is the owner of Axita Cotton Ltd?
Ans – Theowner of Axita Cotton Ltd is Mr Mr. Nitinbhai Patel. He is also Chairman and MD of the company.
Q2) What business does Axita Cotton Ltd do?
Ans – The Axita Cotton Ltd is engaged in business of Cotton Bales manufacturing. The company also exports and trade raw Cotton Bales and Cotton Seeds.
Q3) Is Axita Cotton Ltd a debt free company?
Ans – No, the Axita Cotton Ltd has short term borrowing of Rs 19 crores in FY-24 which company will pay off within 5 years. The net profits made by company is enough to pay its debt. The company does not have any Long term loan.
Q4) Is Axita Cotton Ltd a good stock to buy?
Ans – Yes, Axita Cotton Ltd is a good stock to buy. The turnover of the company in FY-24 was Rs 1102 crores which was almost doubled compared to FY-23 where sales achieved was Rs 553 crores. The net profit of the company compared to FY-24 saw growth of 17.65% whereas in FY-23 the net profit was Rs 17 crores. From year 2018 to 2024, the company has shown consitent growth in sales from Rs 123 crores to Rs 1102 crores.
Q5) What is the bonus issue of Axita Cotton Ltd?
Ans – The last bonus declared by Axita Cotton is 1:3 with ex-date on 22nd Dec. 2023.
