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

Binayaka Tex Pr

Indian Terrain

Maral Overseas

Bannari Amm Spg.

VIP Clothing

Filatex Fash.

Fractal Industri

Avi Ansh

Forcas Studio

S D Retail

Shri Techtex

Why is Bannari Amman Spinning Mills Ltd ?

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 9.12 times
The company has been able to generate a Return on Equity (avg) of 4.02% signifying low profitability per unit of shareholders funds

Flat results in Dec 25

OPERATING PROFIT TO INTEREST (Q) Lowest at 1.77 times
NET SALES(Q) At Rs 203.90 cr has Fallen at -7.8% (vs previous 4Q average)
INTEREST(Q) Highest at Rs 11.35 cr

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -39.45% 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 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.

-39.45%

-0.79

49.77%

Sensex

6.16%

0.52

11.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

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

Pledged Shares

Institutional Holding

0.14%

ROCE (avg)

5.42%

ROE (avg)

4.02%

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

0.36

EV to EBIT

10.31

EV to EBITDA

7.08

EV to Capital Employed

0.67

EV to Sales

0.70

PEG Ratio

0.06

Dividend Yield

ROCE (Latest)

6.61%

ROE (Latest)

3.05%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

13What is working for the Company

PAT(Latest six months)

At Rs 8.52 cr has Grown at 159.46%

ROCE(HY)

Highest at 7.14%

DEBT-EQUITY RATIO(HY)

Lowest at 0.96 times

-10What is not working for the Company

OPERATING PROFIT TO INTEREST (Q)

Lowest at 1.77 times

NET SALES(Q)

At Rs 203.90 cr has Fallen at -7.8% (vs previous 4Q average

INTEREST(Q)

Highest at Rs 11.35 cr

PBDIT(Q)

Lowest at Rs 20.10 cr.

PBT LESS OI(Q)

Lowest at Rs 2.94 cr.

PAT(Q)

At Rs 3.27 cr has Fallen at -8.5% (vs previous 4Q average

NON-OPERATING INCOME(Q)

is 54.21 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is working for Bannari Amm Spg.

Debt-Equity Ratio - Half Yearly

Lowest at 0.96 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

Here's what is not working for Bannari Amm Spg.

Operating Profit to Interest - Quarterly

Lowest at 1.77 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales - Quarterly

Lowest at Rs 203.90 cr

in the last five quarters

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 203.90 cr has Fallen at -7.8% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 221.09 Cr

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Interest - Quarterly

Highest at Rs 11.35 cr

in the last five quarters and Increased by 15.58 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 20.10 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 2.94 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 3.27 cr has Fallen at -8.5% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 3.57 Cr

MOJO Watch

Near term PAT trend is negative

PAT (Rs Cr)

Non Operating Income - Quarterly

is 54.21 % 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

Non Operating Income - Quarterly

Highest at Rs 3.48 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income