Why is Sambandam Spinning Mills Ltd ?
1
Weak Long Term Fundamental Strength with a -38.26% 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 12.07 times
- The company has been able to generate a Return on Equity (avg) of 2.62% signifying low profitability per unit of shareholders funds
2
Flat results in Jun 26
- DEBT-EQUITY RATIO(HY) Highest at 1.73 times
- NET SALES(Q) Lowest at Rs 59.98 cr
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 Sambandam Spg. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Sambandam Spg.
23.99%
0.39
61.02%
Sensex
-5.38%
-0.40
13.50%
Quality key factors
Factor
Value
Sales Growth (5y)
-0.68%
EBIT Growth (5y)
-38.26%
EBIT to Interest (avg)
0.28
Debt to EBITDA (avg)
12.08
Net Debt to Equity (avg)
1.70
Sales to Capital Employed (avg)
1.24
Tax Ratio
19.67%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
3.21%
ROE (avg)
2.62%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
52
Price to Book Value
0.67
EV to EBIT
67.07
EV to EBITDA
16.68
EV to Capital Employed
0.88
EV to Sales
0.73
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
1.22%
ROE (Latest)
-7.04%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
Bearish
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
No Trend
Mildly Bearish
Technical Movement
3What is working for the Company
DEBTORS TURNOVER RATIO(HY)
Highest at 14.53 times
PBT LESS OI(Q)
Highest at Rs 0.33 cr.
-4What is not working for the Company
DEBT-EQUITY RATIO(HY)
Highest at 1.73 times
NET SALES(Q)
Lowest at Rs 59.98 cr
Loading Valuation Snapshot...
Here's what is working for Sambandam Spg.
Debtors Turnover Ratio- Half Yearly
Highest at 14.53 times and Grown
each half year in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 0.33 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Here's what is not working for Sambandam Spg.
Net Sales - Quarterly
Lowest at Rs 59.98 cr
in the last five quartersMOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 59.98 cr has Fallen at -9.0% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 65.92 CrMOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
Debt-Equity Ratio - Half Yearly
Highest at 1.73 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio






