Sangam India

Market Cap: Small Cap
Industry: Textile
ISIN: INE495C01010
NSEID: SANGAMIND
BSEID: 514234

INR

385.50

4.55 (1.19%)

BSENSE

Apr 11, 12:53 PM

BSE+NSE Vol: 19.3 k

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Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

K P R Mill Ltd

Jaykay Enter.

Vardhman Textile

Filatex India

SP Apparels

Welspun Living

Trident

Swan Energy

Sangam India

Himatsing. Seide

Kothari Indl

Why is Sangam (India) Ltd ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 9.34%

Poor long term growth as Net Sales has grown by an annual rate of 8.51% and Operating profit at 13.64% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.82 times

The company has declared Negative results for the last 9 consecutive quarters

PAT(HY) At Rs 10.12 cr has Grown at -42.06%
INTEREST(9M) At Rs 69.21 cr has Grown at 20.32%
CASH AND CASH EQUIVALENTS(HY) Lowest at Rs 20.01 cr

Stock is technically in a Mildly Bearish range

The technical trend has deteriorated from Sideways on 07-Apr-25 and has generated 3.09% returns since then
The stocks Bollinger Band and KST technical factors are also Bearish

Despite the size of the company, domestic mutual funds hold only 0% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

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 Textile )

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Sangam India for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sangam India

-13.63%

-0.26

49.78%

SENSEX

0.45%

0.03

14.48%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.51%

EBIT Growth (5y)

13.64%

EBIT to Interest (avg)

2.53

Debt to EBITDA (avg)

3.72

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

1.49

Tax Ratio

29.04%

Dividend Payout Ratio

24.62%

Pledged Shares

Institutional Holding

3.26%

ROCE (avg)

9.58%

ROE (avg)

10.11%

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

1.92

EV to EBIT

21.65

EV to EBITDA

12.20

EV to Capital Employed

1.42

EV to Sales

1.10

PEG Ratio

Dividend Yield

0.53%

ROCE (Latest)

5.94%

ROE (Latest)

4.29%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

Bullish

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

4What is working for the Company

OPERATING PROFIT TO INTEREST(Q)

Highest at 2.98 times

NET SALES(Q)

Highest at Rs 753.99 cr

PBT LESS OI(Q)

At Rs 13.67 cr has Grown at 37.5% (vs previous 4Q average

-12What is not working for the Company

PAT(HY)

At Rs 10.12 cr has Grown at -42.06%

INTEREST(9M)

At Rs 69.21 cr has Grown at 20.32%

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 20.01 cr

DEBT-EQUITY RATIO(HY)

Highest at 1.20 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.17 times

EPS(Q)

Lowest at Rs 0.49

Loading Valuation Snapshot...

Here's what is working for Sangam India

Operating Profit to Interest - Quarterly

Highest at 2.98 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales - Quarterly

Highest at Rs 753.99 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 13.67 cr has Grown at 37.5% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 9.94 Cr

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Here's what is not working for Sangam India

Profit After Tax (PAT) - Quarterly

At Rs 2.91 cr has Fallen at -72.8% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 10.70 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Interest - Nine Monthly

At Rs 69.21 cr has Grown at 20.32%

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs 0.49

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 20.01 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio - Half Yearly

Highest at 1.20 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

Debtors Turnover Ratio- Half Yearly

Lowest at 5.17 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio