Why is Bannari Amman Spinning Mills Ltd ?
1
Weak Long Term Fundamental Strength with a -36.06% 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 11.14 times
- The company has been able to generate a Return on Equity (avg) of 3.41% signifying low profitability per unit of shareholders funds
2
Stock is technically in a Bearish range
- The technical trend has deteriorated from Sideways on 23-Jan-25 and has generated -30.79% returns since then
- Multiple factors for the stock are Bearish like MACD, Bollinger Band and KST
3
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -23.44% returns in the last 1 year, the stock has also underperformed BSE 500 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 Textile )
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.
-23.44%
-0.46
51.49%
SENSEX
0.45%
0.03
14.48%
Quality key factors
Factor
Value
Sales Growth (5y)
-4.63%
EBIT Growth (5y)
-36.06%
EBIT to Interest (avg)
0.80
Debt to EBITDA (avg)
10.17
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
1.27
Tax Ratio
28.67%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.01%
ROCE (avg)
5.11%
ROE (avg)
3.41%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
18
Price to Book Value
0.52
EV to EBIT
88.36
EV to EBITDA
19.15
EV to Capital Employed
0.77
EV to Sales
0.72
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
0.35%
ROE (Latest)
-5.53%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
No Trend
Technical Movement
12What is working for the Company
PAT(HY)
Higher at Rs 3.28 cr
OPERATING PROFIT TO INTEREST(Q)
Highest at 1.85 times
DEBT-EQUITY RATIO(HY)
Lowest at 1.15 times
PBDIT(Q)
Highest at Rs 20.24 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 9.50%
PBT LESS OI(Q)
Highest at Rs 3.65 cr.
-1What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
Here's what is working for Bannari Amm Spg.
Profit After Tax (PAT) - Half Yearly
At Rs 3.28 cr has Grown at 120.92%
Year on Year (YoY)MOJO Watch
PAT trend is very positive
PAT (Rs Cr)
Operating Profit to Interest - Quarterly
Highest at 1.85 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Profit After Tax (PAT) - Half Yearly
Higher at Rs 3.28 cr
than preceding 12 month period ended Dec 2024 of Rs -36.39 crMOJO Watch
In the half year the company has already crossed PAT of the previous twelve months
PAT (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 20.24 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 9.50%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 3.65 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Debt-Equity Ratio - Half Yearly
Lowest at 1.15 times
in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio