Sambandam Spinning Mills Ltd (SAMBANDAM) 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

Bang Overseas

SVP Global

Shekhawati Inds

Wires & Fabriks

Mohite Industrie

Tuni Text. Mills

Sambandam Spg.

Vinny Overseas

Celebrity Fash.

Garment Mantra

Avax Apparels

Why is Sambandam Spinning Mills Ltd ?

Weak Long Term Fundamental Strength with a -33.51% 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

Negative results in Mar 26

PBT LESS OI(Q) At Rs -4.63 cr has Fallen at -337.8% (vs previous 4Q average)
OPERATING PROFIT TO INTEREST (Q) Lowest at 0.20 times
DEBT-EQUITY RATIO(HY) Highest at 1.73 times

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -26.50% 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 Sambandam Spg. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sambandam Spg.

-26.5%

-0.42

62.45%

Sensex

-8.21%

-0.63

13.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.67%

EBIT Growth (5y)

-33.51%

EBIT to Interest (avg)

0.42

Debt to EBITDA (avg)

12.08

Net Debt to Equity (avg)

1.70

Sales to Capital Employed (avg)

1.24

Tax Ratio

23.27%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

3.21%

ROE (avg)

2.62%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.58

EV to EBIT

69.31

EV to EBITDA

15.94

EV to Capital Employed

0.85

EV to Sales

0.70

PEG Ratio

Dividend Yield

ROCE (Latest)

1.22%

ROE (Latest)

-7.04%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Bearish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

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

3What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 14.53 times

NET SALES(Q)

Highest at Rs 67.93 cr

-12What is not working for the Company

PBT LESS OI(Q)

At Rs -4.63 cr has Fallen at -337.8% (vs previous 4Q average

OPERATING PROFIT TO INTEREST (Q)

Lowest at 0.20 times

DEBT-EQUITY RATIO(HY)

Highest at 1.73 times

INTEREST(Q)

Highest at Rs 3.04 cr

PBDIT(Q)

Lowest at Rs 0.62 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 0.91%

EPS(Q)

Lowest at Rs -6.92

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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 periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Net Sales - Quarterly

Highest at Rs 67.93 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Here's what is not working for Sambandam Spg.

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -4.63 cr has Fallen at -337.8% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs -1.06 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Operating Profit to Interest - Quarterly

Lowest at 0.20 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest - Quarterly

Highest at Rs 3.04 cr

in the last five quarters and Increased by 10.14 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 0.62 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 0.91%

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 -4.63 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs -6.92

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Debt-Equity Ratio - Half Yearly

Highest at 1.73 times

in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio