Why is Bannari Amman Spinning Mills Ltd ?
1
Weak Long Term Fundamental Strength with a -2.11% 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
2
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -43.66% 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.
-43.71%
-0.85
51.46%
Sensex
4.83%
0.41
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
-2.11%
EBIT Growth (5y)
54.49%
EBIT to Interest (avg)
1.04
Debt to EBITDA (avg)
9.22
Net Debt to Equity (avg)
0.95
Sales to Capital Employed (avg)
1.23
Tax Ratio
28.94%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.19%
ROCE (avg)
5.42%
ROE (avg)
4.02%
Valuation Key Factors 
Factor
Value
P/E Ratio
16
Industry P/E
22
Price to Book Value
0.50
EV to EBIT
11.24
EV to EBITDA
7.82
EV to Capital Employed
0.74
EV to Sales
0.77
PEG Ratio
0.11
Dividend Yield
NA
ROCE (Latest)
6.61%
ROE (Latest)
3.05%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
Bullish
Bollinger Bands
Mildly Bullish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
No Trend
No Trend
Technical Movement
20What is working for the Company
OPERATING PROFIT TO INTEREST(Q)
Highest at 2.30 times
ROCE(HY)
Highest at 7.14%
DEBT-EQUITY RATIO(HY)
Lowest at 0.96 times
PAT(Q)
Highest at Rs 5.25 cr.
EPS(Q)
Highest at Rs 0.69
-1What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
Here's what is working for Bannari Amm Spg.
Operating Profit to Interest - Quarterly
Highest at 2.30 times and Grown
each quarter in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Debt-Equity Ratio - Half Yearly
Lowest at 0.96 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
Profit After Tax (PAT) - Quarterly
Highest at Rs 5.25 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 0.69
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)






