Bannari Amman Spinning Mills Ltd (BASML) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Bannari Amm Spg.

Maral Overseas

Saraswati Saree

Shahlon Silk

R&B Denims

Brand Concepts

Shiva Texyarn

RRIL

Zodiac Cloth. Co

Rudra Ecovation

Shreedhar Spinne

Why is Bannari Amman Spinning Mills Ltd ?

Weak Long Term Fundamental Strength with a -3.10% 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 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

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

With ROCE of 6.7, it has a Very 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 -3.01%, its profits have risen by 580% ; the PEG ratio of the company is 0

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

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -3.01% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How 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, Medium Return

Absolute

Risk Adjusted

Volatility

Bannari Amm Spg.

-3.04%

-0.06

46.92%

Sensex

-1.65%

-0.12

13.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-3.10%

EBIT Growth (5y)

5.37%

EBIT to Interest (avg)

1.00

Debt to EBITDA (avg)

8.92

Net Debt to Equity (avg)

0.83

Sales to Capital Employed (avg)

1.22

Tax Ratio

31.14%

Dividend Payout Ratio

Pledged Shares

52.47%

Institutional Holding

0.20%

ROCE (avg)

5.58%

ROE (avg)

2.94%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.48

EV to EBIT

10.62

EV to EBITDA

7.19

EV to Capital Employed

0.71

EV to Sales

0.71

PEG Ratio

0.03

Dividend Yield

0.88%

ROCE (Latest)

6.73%

ROE (Latest)

3.09%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

20What 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(Q)

Highest at Rs 13.69 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

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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 Cr

MOJO 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 periods

MOJO 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 years

MOJO 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 quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 1.71

in the last five quarters

MOJO 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 Cr

MOJO 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 quarters

MOJO 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 quarters

MOJO 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 quarters

MOJO 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 periods

MOJO 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 years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (Rs)

Dividend Payout Ratio (DPR) - Annually

Lowest at 0.00%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)