Stock Price Movement and Market Context
The stock has been on a declining trajectory for the past two trading sessions, registering a cumulative loss of 12.05%. Today’s drop of 3.64% further extended this slide, with the share price slipping below all key moving averages – including the 5-day, 20-day, 50-day, 100-day, and 200-day averages – signalling sustained bearish sentiment. This underperformance is notable against the backdrop of a broadly positive market, where the Sensex rose by 0.21% to close at 83,450.96, inching closer to its 52-week high of 86,159.02, just 3.25% away.
Despite the broader market’s gains, Super Spinning Mills Ltd lagged its sector peers, underperforming the Garments & Apparels sector by 2.99% today. Over the past year, the stock has delivered a negative return of 34.58%, in stark contrast to the Sensex’s positive 9.81% gain over the same period. The stock’s 52-week high was Rs.12.88, underscoring the extent of the decline from its peak.
Fundamental Performance and Financial Metrics
Super Spinning Mills Ltd’s financial profile continues to reflect challenges. The company’s long-term net sales have contracted at a compounded annual growth rate (CAGR) of -35.10% over the last five years, indicating a persistent decline in revenue generation. Profitability metrics remain subdued, with the company reporting losses and a negative return on equity (ROE). The latest quarterly profit before tax (PBT) excluding other income stood at a modest Rs.0.59 crore, the lowest in recent periods.
The company’s ability to service its debt is constrained, as evidenced by a weak average EBIT to interest ratio of 0.67, signalling limited earnings relative to interest obligations. Return on capital employed (ROCE) is reported at 5.1%, which, when combined with an enterprise value to capital employed ratio of 0.8, suggests a valuation that is relatively expensive compared to the company’s capital efficiency.
Despite the negative returns, the company’s profits have shown a notable increase of 59.6% over the past year, a factor that has not yet translated into positive stock performance or improved investor sentiment.
Patience pays off here! This Micro Cap from Fertilizers sector has delivered steady gains quarter after quarter. Now proudly part of our Reliable Performers list.
- - New Reliable Performer
- - Steady quarterly gains
- - Fertilizers consistency
Comparative Performance and Market Position
Over the last three years, Super Spinning Mills Ltd has consistently underperformed the BSE500 index, reflecting below-par returns in both the near and long term. The stock’s current Mojo Score stands at 16.0, with a Mojo Grade of Strong Sell, an upgrade from the previous Sell rating as of 2 July 2025. This grading reflects the company’s weak fundamental strength and deteriorating financial health.
The company’s market capitalisation grade is rated 4, indicating a micro-cap status with limited market liquidity and scale. Majority shareholding is held by non-institutional investors, which may influence trading volumes and price volatility.
Valuation and Sector Comparison
While the stock trades at a discount relative to its peers’ average historical valuations, its valuation metrics remain elevated when considering capital employed and returns generated. The enterprise value to capital employed ratio of 0.8 is high given the company’s modest ROCE, suggesting that the market is pricing in expectations that have yet to materialise in operational or financial improvements.
Sector peers in Garments & Apparels have generally exhibited stronger performance and more favourable financial metrics, contributing to the relative underperformance of Super Spinning Mills Ltd within its industry segment.
Super Spinning Mills Ltd or something better? Our SwitchER feature analyzes this micro-cap Garments & Apparels stock and recommends superior alternatives based on fundamentals, momentum, and value!
- - SwitchER analysis complete
- - Superior alternatives found
- - Multi-parameter evaluation
Summary of Key Concerns
The stock’s fall to Rs.6.73, its lowest level in 52 weeks, is underpinned by a combination of weak revenue growth, constrained profitability, and limited debt servicing capacity. The company’s financial ratios and valuation metrics highlight challenges in generating adequate returns on capital and sustaining earnings growth. These factors have contributed to the stock’s sustained underperformance relative to both its sector and broader market indices.
Despite a recent increase in profits, the overall trend remains subdued, with the stock trading below all major moving averages and continuing to lose ground over consecutive sessions. The market’s cautious stance is reflected in the Strong Sell Mojo Grade, signalling ongoing concerns about the company’s financial health and growth prospects.
Market Environment
While Super Spinning Mills Ltd faces headwinds, the broader market environment remains relatively buoyant. The Sensex’s recovery from a flat opening to a 0.21% gain today, led by mega-cap stocks, contrasts with the micro-cap’s struggles. The Sensex’s position below its 50-day moving average but above its 200-day moving average indicates a mixed but generally positive market momentum, which Super Spinning Mills Ltd has not yet been able to capitalise on.
In summary, the stock’s new 52-week low reflects a confluence of financial and market factors that have weighed on its performance over the past year and beyond.
Unlock special upgrade rates for a limited period. Start Saving Now →
