Why is Bannari Amman Spinning Mills Ltd ?
1
Weak Long Term Fundamental Strength with a -2.41% CAGR growth in Net Sales over the last 5 years
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 5.18 times
- The company has been able to generate a Return on Equity (avg) of 4.02% signifying low profitability per unit of shareholders funds
2
Flat results in Mar 26
- PAT(Q) At Rs 1.38 cr has Fallen at -65.4% (vs previous 4Q average)
- PBT LESS OI(Q) Lowest at Rs 2.30 cr.
- EPS(Q) Lowest at Rs 0.17
3
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -27.45% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Garments & Apparels)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Bannari Amm Spg. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Bannari Amm Spg.
-27.45%
-0.60
45.91%
Sensex
-8.4%
-0.65
12.97%
Quality key factors
Factor
Value
Sales Growth (5y)
-2.41%
EBIT Growth (5y)
22.56%
EBIT to Interest (avg)
1.02
Debt to EBITDA (avg)
9.22
Net Debt to Equity (avg)
0.95
Sales to Capital Employed (avg)
1.23
Tax Ratio
27.82%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.14%
ROCE (avg)
5.42%
ROE (avg)
4.02%
Valuation Key Factors 
Factor
Value
P/E Ratio
13
Industry P/E
23
Price to Book Value
0.44
EV to EBIT
10.95
EV to EBITDA
7.52
EV to Capital Employed
0.71
EV to Sales
0.74
PEG Ratio
0.07
Dividend Yield
NA
ROCE (Latest)
6.61%
ROE (Latest)
3.05%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
Mildly Bearish
Technical Movement
3What is working for the Company
PAT(9M)
At Rs 9.90 cr has Grown at 66.24%
-5What is not working for the Company
PAT(Q)
At Rs 1.38 cr has Fallen at -65.4% (vs previous 4Q average
PBT LESS OI(Q)
Lowest at Rs 2.30 cr.
EPS(Q)
Lowest at Rs 0.17
Loading Valuation Snapshot...
Here's what is not working for Bannari Amm Spg.
Profit After Tax (PAT) - Quarterly
At Rs 1.38 cr has Fallen at -65.4% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 3.98 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs 2.30 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Earnings per Share (EPS) - Quarterly
Lowest at Rs 0.17
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)






