ScoreWhy is Bannari Amman Spinning Mills Ltd ?
1
Weak Long Term Fundamental Strength with a -11.06% CAGR growth in Operating Profits over the last 5 years
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.62 times
- The company has been able to generate a Return on Equity (avg) of 2.94% signifying low profitability per unit of shareholders funds
2
Positive results in Jun 26
- OPERATING CF(Y) Highest at Rs 116.83 Cr
- ROCE(HY) Highest at 7.59%
- DEBT-EQUITY RATIO(HY) Lowest at 0.84 times
3
With ROCE of 6.7, it has a Attractive valuation with a 0.7 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -14.48%, its profits have risen by 120.7% ; the PEG ratio of the company is 0.1
4
52.47% of Promoter Shares are Pledged
- In falling markets, high promoter pledged shares puts additional downward pressure on the stock prices
- The proportion of pledged holdings has increased by 52.47% over the last quarter
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Bannari Amm Spg. should be less than 10%
- Overall Portfolio exposure to Garments & Apparels should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Garments & Apparels)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Bannari Amm Spg. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Bannari Amm Spg.
-14.48%
-0.30
47.81%
Sensex
-4.69%
-0.36
13.39%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-5.25%
EBIT Growth (5y)
-11.06%
EBIT to Interest (avg)
0.93
Debt to EBITDA (avg)
8.92
Net Debt to Equity (avg)
0.83
Sales to Capital Employed (avg)
1.22
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
0
Pledged Shares
52.47%
Institutional Holding
0.20%
ROCE (avg)
5.58%
ROE (avg)
2.94%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
9
Industry P/E
28
Price to Book Value
0.43
EV to EBIT
11.22
EV to EBITDA
7.29
EV to Capital Employed
0.69
EV to Sales
0.69
PEG Ratio
0.07
Dividend Yield
0.97%
ROCE (Latest)
6.73%
ROE (Latest)
3.09%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
Bullish
No Signal
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend20What is working for the Company
OPERATING CF(Y)
Highest at Rs 116.83 Cr
ROCE(HY)
Highest at 7.59%
DEBT-EQUITY RATIO(HY)
Lowest at 0.84 times
PAT(9M)
Higher at Rs 18.34 Cr
EPS(Q)
Highest at Rs 1.71
-12What is not working for the Company
OPERATING PROFIT TO NET SALES(Q)
Lowest at 8.67%
PBT LESS OI(Q)
Lowest at Rs 0.87 cr.
DPS(Y)
Lowest at Rs 0.00
DPR(Y)
Lowest at 0.00%
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.24 times
PBDIT(Q)
Lowest at Rs 18.77 cr.
NON-OPERATING INCOME(Q)
is 62.82 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Bannari Amm Spg.
Profit After Tax (PAT) - Quarterly
At Rs 13.69 cr has Grown at 274.0% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 3.66 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Debt-Equity Ratio - Half Yearly
Lowest at 0.84 times and Fallen
each half year in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Operating Cash Flow - Annually
Highest at Rs 116.83 Cr
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 13.69 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 1.71
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Bannari Amm Spg.
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 0.87 cr has Fallen at -78.8% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 4.11 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Operating Profit Margin - Quarterly
Lowest at 8.67% and Fallen
each quarter in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs 0.87 cr. and Fallen
each quarter in the last five quartersMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Lowest at Rs 18.77 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Non Operating Income - Quarterly
is 62.82 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Debtors Turnover Ratio- Half Yearly
Lowest at 5.24 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
Dividend per Share (DPS) - Annually
Lowest at Rs 0.00
in the last five yearsMOJO Watch
Company is distributing lower dividend than previous years
DPS (Rs)
Dividend Payout Ratio (DPR) - Annually
Lowest at 0.00%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
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