Bannari Amman Spinning Mills Ltd Hits 52-Week Low Amid Continued Downtrend

Stock Price Movement and Market Context

On 21 Jan 2026, Bannari Amman Spinning Mills Ltd recorded an intraday low of Rs.19.86, representing a 13.2% drop within the trading session. This new low also stands as the company’s all-time lowest price level. The stock has underperformed its sector, the Garments & Apparels industry, by 5.3% today, while the textile sector itself declined by 2.26%. Over the past three trading days, the stock has consecutively fallen, delivering a cumulative negative return of 16.4% during this period.

Volatility has been notably high, with an intraday volatility of 7.77% calculated from the weighted average price, indicating significant price fluctuations throughout the day. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained downward momentum.

In comparison, the broader market has also faced headwinds. The Sensex opened 385.82 points lower and is trading at 81,767.27, down 0.5%. The index has been on a three-week losing streak, shedding 4.66% over this period. Notably, the Sensex is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, suggesting some underlying resilience in the longer term.

Long-Term Performance and Relative Weakness

Over the last year, Bannari Amman Spinning Mills Ltd has delivered a return of -57.00%, a stark contrast to the Sensex’s positive 7.82% gain over the same period. The stock’s 52-week high was Rs.50.21, highlighting the extent of the decline from its peak. This underperformance is consistent with the company’s track record over the past three years, where it has lagged behind the BSE500 benchmark in each annual period.

The company’s Mojo Score currently stands at 32.0, with a Mojo Grade of Sell, downgraded from Strong Sell on 17 Feb 2025. The Market Cap Grade is rated 4, reflecting its relative market capitalisation within its sector and peer group.

Financial Metrics and Fundamental Analysis

The company’s long-term financial performance has been subdued. Net sales have experienced a compound annual growth rate (CAGR) of -2.11% over the last five years, indicating a contraction in revenue. Profitability metrics also reflect modest returns, with an average Return on Equity (ROE) of 4.02%, suggesting limited efficiency in generating profits from shareholders’ funds.

Debt servicing capacity remains a concern, as evidenced by a high Debt to EBITDA ratio of 9.12 times. This elevated leverage ratio points to significant financial obligations relative to earnings before interest, taxes, depreciation, and amortisation.

Despite these challenges, the company has reported positive results for five consecutive quarters. The operating profit to interest coverage ratio reached a peak of 2.30 times, indicating some ability to meet interest expenses from operating profits. The Return on Capital Employed (ROCE) for the half-year period was recorded at 7.14%, while the debt-to-equity ratio stood at a relatively moderate 0.96 times.

Valuation metrics suggest the stock is trading at a discount compared to its peers’ historical averages. The ROCE of 6.6 and an enterprise value to capital employed ratio of 0.7 highlight a valuation that may be considered attractive relative to the company’s capital base. Additionally, the company’s profits have increased by 163.7% over the past year, despite the stock’s negative price performance, resulting in a low PEG ratio of 0.1.

Shareholding Pattern and Sectoral Position

The majority of Bannari Amman Spinning Mills Ltd’s shares are held by non-institutional investors, which may influence trading dynamics and liquidity. The company operates within the Garments & Apparels sector, which has faced headwinds alongside the broader textile industry’s decline of 2.26% today.

Summary of Key Indicators

To summarise, Bannari Amman Spinning Mills Ltd’s stock has experienced a significant decline to Rs.19.86, its lowest in 52 weeks and all-time low. The stock’s performance has been weaker than both its sector and the broader market indices. Financially, the company faces challenges in growth and leverage, although recent quarters have shown some improvement in profitability and interest coverage. Valuation metrics indicate the stock is trading at a discount relative to peers, while the shareholding pattern remains predominantly non-institutional.

These factors collectively provide a comprehensive view of the stock’s current position within the market and its financial standing as of January 2026.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →