Axita Cotton Limited was listed on the BSE on January 10, 2019. In the last five years, its stock has given a massive return of around 400%. Will Axita Cotton continue to provide such great returns in the future as well? Let’s explore Axita Cotton’s growth potential and the Axita Cotton share price target 2025 to 2050 in this article.
About Axita Cotton
Axita Cotton Limited was founded on July 16, 2013, in Ahmedabad, Gujarat. It manufactures and trades cotton bales and cotton seeds. The company primarily operates in the ginning and pressing of raw cotton to produce high-quality bales for the domestic and international markets. Axita Cotton procures raw cotton directly from farmers and processes it using modern ginning technology to ensure consistent quality. The company also exports its products to countries like Bangladesh, Vietnam, and China.
Axita Cotton Business Model
- Cotton Processing and Trading Business: Axita Cotton processes raw cotton to produce cotton bales and cotton seeds. It purchases raw cotton from local markets, processes it at its ginning and pressing units, and sells the finished products to textile mills and traders across India. Cotton seeds, a by-product, are sold for uses like oil extraction and cattle feed.
- Export Business: Axita Cotton also exports cotton bales to international markets, including countries like Bangladesh, China, and Vietnam, which contributes to its overall revenue and global presence.
Axita Cotton Fundamental Analysis
| Stock Name | Axita Cotton Ltd. |
|---|---|
| NSE Symbol | AXITA |
| Market Cap | ₹ 315 Cr. |
| 52W High | ₹ 21.3 |
| 52W Low | ₹ 8.95 |
| Stock P/E | 900 |
| Book Value | ₹ 1.80 |
| Dividend Yield | 1.44 % |
| ROCE | – % |
| ROE | – % |
| Face Value | ₹ 1.00 |
| Industry PE | 24.9 |
| Price to book value | 5.02 |
| Debt to equity | 0.03 |
| PEG Ratio | – |
| Quick ratio | 4.83 |
| Shareholders | March 2023 | March 2024 | March 2025 |
|---|---|---|---|
| Promoters | 69.65% | 62.77% | 41.93% |
| FIIs | 12.45% | 0.47% | 2.04% |
| Public | 17.90% | 36.76% | 56.04% |
| No. of Shareholders | 21,808 | 1,28,135 | 1,92,636 |
Key Factors Driving Axita Cotton Future Growth
- Rising Global Demand for Cotton and Yarn: With increasing demand for natural fiber textiles globally, especially in markets like China, Bangladesh, and Vietnam, Axita Cotton stands to benefit through higher export volumes of cotton bales and yarn.
- Government Support for Cotton Industry: The Government of India has introduced initiatives such as the Cotton Corporation of India procurement, Technology Mission on Cotton, and subsidies under the Textile PLI Scheme. These initiatives ensure stable prices for farmers and smoother raw material supply for ginners like Axita Cotton.
- Expansion into Yarn Manufacturing: Axita Cotton has diversified its product portfolio by venturing into cotton yarn manufacturing. This move not only adds value to raw cotton but also enhances margins and reduces dependence on low-margin ginning operations, supporting long-term profitability.
- Strong Export Focus: The company generates a significant share of its revenue from exports. With a focus on quality standards and international certifications, Axita is well-positioned to scale its presence in overseas markets.
- Robust Demand from Domestic Textile Industry: India’s growing apparel and home furnishing industries are driving strong domestic demand for cotton and yarn. This structural demand growth supports Axita Cotton’s core business and offers stable revenue streams beyond exports.
Pros of Axita Cotton
- Debt Free Company: Axita Cotton is almost a debt-free company with a debt-to-equity ratio of 0.03, which shows its financial stability.
- Increase in FIIs Holding: Foreign Institutional Investors (FIIs) have increased their holding to 2.04% in March 2025 from 1.80% in December 2024, which indicates growing confidence in the Axita Cotton future potential by the FIIs.
Cons of Axita Cotton
- Overvaluation Concern: Axita Cotton stock is trading at a PE ratio of 900 and a (P/B) ratio of 5.02, which shows that its stock is significantly overvalued compared to its earnings and assets.
- Low Interest Coverage Ratio: The interest coverage ratio of Axita Cotton is 1.43, which shows that the company is struggling to pay interest.
Axita Cotton Ltd Balance Sheet
| Particulars | March 2025 |
|---|---|
| Equity Capital | 35 |
| Reserves | 28 |
| Borrowings | 2 |
| Other Liabilities | 12 |
| Total Liabilities | 77 |
| Fixed Assets | 6 |
| CWIP | 0 |
| Investments | 8 |
| Other Assets | 64 |
| Total Assets | 77 |
By the end of 2025, the Axita Cotton share price is expected to be around ₹11.3 in normal conditions. In a bear market, it might be ₹8.1, and in a bull market, it may go up to ₹14.0.
| Axita Cotton Share Price Target 2025 | Rupees (₹) |
|---|---|
| Bear Market | 8.1 |
| Normal Market | 11.3 |
| Bull Market | 14.0 |
In 2026, the Axita Cotton share price is expected to be around ₹13.5 in a normal situation. In a bear market, it might be ₹8.9, and in a bull market, it may cross ₹18.2.
| Axita Cotton Share Price Target 2026 | Rupees (₹) |
|---|---|
| Bear Market | 8.9 |
| Normal Market | 13.5 |
| Bull Market | 18.2 |
According to our analysis, the Axita Cotton share price is expected to be around ₹16.3 in 2027. In a bear market, it might be ₹9.8, and in a bull market, it may cross ₹23.7.
| Axita Cotton Share Price Target 2027 | Rupees (₹) |
|---|---|
| Bear Market | 9.8 |
| Normal Market | 16.3 |
| Bull Market | 23.7 |
According to our analysis, the Axita Cotton share price may trade near ₹19.5 by 2028; bearish conditions could pull it down to ₹10.8, while a strong bull run might lift it to ₹30.8.
| Axita Cotton Share Price Target 2028 | Rupees (₹) |
|---|---|
| Bear Market | 10.8 |
| Normal Market | 19.5 |
| Bull Market | 30.8 |
Under normal conditions, the Axita Cotton share price might hit ₹23.4 by 2029. A bearish trend could lower it to ₹11.9, whereas a bullish surge could raise it to ₹40.1.
| Axita Cotton Share Price Target 2029 | Rupees (₹) |
|---|---|
| Bear Market | 11.9 |
| Normal Market | 23.4 |
| Bull Market | 40.1 |
In a normal situation, the Axita Cotton share price is projected to be approximately ₹30 in 2030. In a bear market, the value may be as low as ₹13.1, while in a bull market, it may rise to ₹50.
| Axita Cotton Share Price Target 2030 | Rupees (₹) |
|---|---|
| Bear Market | 13.1 |
| Normal Market | 30 |
| Bull Market | 50 |
By 2035, the Axita Cotton share price is projected to be around ₹60 under normal conditions. In adverse markets, the price could fall to ₹20, while favorable conditions might push it up to ₹150.
| Axita Cotton Share Price Target 2035 | Rupees (₹) |
|---|---|
| Bear Market | 20 |
| Normal Market | 60 |
| Bull Market | 150 |
Under normal conditions, the Axita Cotton share price might hit ₹120 by 2040. A bearish trend could lower it to ₹30, whereas a bullish surge could raise it to ₹450.
| Axita Cotton Share Price Target 2040 | Rupees (₹) |
|---|---|
| Bear Market | 30 |
| Normal Market | 120 |
| Bull Market | 450 |
In 2050, the Axita Cotton share price is expected to be around ₹480 in a normal situation. In a bear market, it might be ₹90, and in a bull market, it may go up to ₹2700.
| Axita Cotton Share Price Target 2050 | Rupees (₹) |
|---|---|
| Bear Market | 90 |
| Normal Market | 480 |
| Bull Market | 2700 |
Disclaimer
This article is for educational purposes only. It is not a stock recommendation and should not be treated as such. Please ask your financial advisor before making any investment decision.
