Sangam (India) Faces Financial Struggles Despite Positive Technical Indicators
Sangam (India), a small-cap company in the Garments & Apparels sector, has recently seen a change in its evaluation score, indicating a shift to a mildly bullish technical trend. However, the company continues to face financial challenges, including nine consecutive quarters of negative performance and concerns over its debt servicing capacity.
Sangam (India), a small-cap player in the Garments & Apparels industry, has recently undergone an adjustment in its evaluation score. This revision reflects a shift in the technical trend from a sideways movement to a mildly bullish stance. Key technical indicators such as MACD and Bollinger Bands are showing bullish signals, while the KST also aligns with this positive trend. Despite these technical indicators, the company has faced challenges in its financial performance, particularly in the recent quarter, which has seen negative results for nine consecutive quarters. The Return on Capital Employed (ROCE) stands at 9.34%, indicating weak long-term fundamental strength. Additionally, the company's ability to service debt is under scrutiny, with a Debt to EBITDA ratio of 3.82 times.
Sangam (India) has experienced modest growth in net sales and operating profit over the past five years, but these figures may not be sufficient to attract significant interest from domestic mutual funds, which currently hold no stake in the company.
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