Sangam (India) Ltd - Stock Valuation and Financial Performance

BSE: 514234 | NSE: SANGAMIND | Textile | Small Cap

Sangam India Share Price

445 8.20 1.88%
as on 28-Mar'24 16:01

DeciZen - make an informed investing decision on Sangam India

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Sangam (India) stock performance -

mw4me loader
P/E Ratio (SA):
37.47
Market Cap:
2,203.6 Cr.
52-wk low:
210.2
52-wk high:
627.2

Is Sangam (India) Ltd an attractive stock to invest in?

1. Is Sangam (India) Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Sangam (India) Ltd is a average quality company.

2. Is Sangam (India) Ltd undervalued or overvalued?

The key valuation ratios of Sangam (India) Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Sangam (India) Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Sangam (India) Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Sangam India:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Sangam (India) Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 9%10.2%11.6%8.1%5.3%5.1%5.1%3.1%14%12.9%-
Value Creation
Index
-0.4-0.3-0.2-0.4-0.6-0.6-0.6-0.80-0.1-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 1,4331,4691,5041,5941,6381,8741,7831,3542,4382,7152,630
Sales YoY Gr.-2.5%2.4%6%2.8%14.4%-4.8%-24.1%80.1%11.4%-
Adj EPS 9.912.819.211.95.64.73.50.432.134.911.7
YoY Gr.-29.9%50%-38.1%-52.8%-17.3%-25.2%-87.6%7374.4%8.7%-
BVPS (₹) 84.194.3111.4125.3130.8133.6135.3128.9159191.8193.7
Adj Net
Profit
38.950.675.84722.218.313.71.914015759
Cash Flow from Ops. 16313613914795.4174183132248193-
Debt/CF from Ops. 3.64.64.74.88.34.13.54.52.44.2-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 7.4%10.6%15.1%11.4%
Adj EPS 15.1%44.1%115.7%8.7%
BVPS9.6%8%12.3%20.6%
Share Price 29.1% 46.7% 79.9% 109.8%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
12.414.418.710.14.43.52.60.321.919.66.1
Op. Profit
Mgn %
13.214.215117.899.19.112.611.88.1
Net Profit
Mgn %
2.73.4531.410.80.15.75.82.2
Debt to
Equity
1.81.71.51.41.51.31.21.10.90.9-
Working Cap
Days
13213815316117917017221714415274
Cash Conv.
Cycle
84951081111151041121479710412

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 15.05%

Net Profit is growing at healthy rate in last 3 years 115.69%

Debt to equity has declined versus last 3 years average to 0.94

Return on Equity has declined versus last 3 years average to 6.10%

Sales growth is not so good in last 4 quarters at -4.79%

Latest Financials - Sangam (India) Ltd.

Standalone Consolidated
TTM EPS (₹) 11.7 11.4
TTM Sales (₹ Cr.) 2,630 2,612
BVPS (₹.) 193.7 193.2
Reserves (₹ Cr.) 923 921
P/BV 2.26 2.27
PE 37.47 38.46
From the Market
52 Week Low / High (₹) 210.20 / 627.20
All Time Low / High (₹) 3.44 / 627.20
Market Cap (₹ Cr.) 2,204
Equity (₹ Cr.) 50.3
Face Value (₹) 10
Industry PE 27.9

Management X-Ray of Sangam India:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Sangam India

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales1,4331,4691,5041,5941,6381,8741,7831,3542,4382,715
Operating Expenses 1,2441,2601,2781,4181,5111,7111,6221,2302,1302,414
Manufacturing Costs273240256281329432425303479609
Material Costs8168488219129451,0179286911,2471,410
Employee Cost 105119140160174188190148201231
Other Costs 5053626663757988203164
Operating Profit 188209226176127162161123308302
Operating Profit Margin (%) 13.2%14.2%15.0%11.0%7.8%8.7%9.0%9.1%12.6%11.1%
Other Income 13112524259810717
Interest 66676465636769494854
Depreciation 74807673778081817078
Exceptional Items 00000000-12-26
Profit Before Tax 6172110631324203184161
Tax 2121338-1897-24327
Profit After Tax 415277553016135141135
PAT Margin (%) 2.8%3.5%5.1%3.4%1.9%0.8%0.7%0.4%5.8%5.0%
Adjusted EPS (₹)10.313.119.513.97.74.03.41.232.529.9
Dividend Payout Ratio (%)15%15%10%14%13%25%30%81%6%7%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 331372439494516527533560691864
Share Capital 39393939393939434345
Reserves 292332400454476487494516647819
Minority Interest0000000000
Debt498535583647717640601514545758
Long Term Debt276258281327344285242204181324
Short Term Debt222277302320372355359309364434
Trade Payables717576102150164115116287224
Others Liabilities 197195194187201210198227299266
Total Liabilities 1,0971,1771,2921,4301,5831,5411,4471,4171,8222,112

Fixed Assets

Gross Block1,1141,2191,3167278498789279819971,108
Accumulated Depreciation57665673272149230311391395453
Net Fixed Assets538563585654699648616590602655
CWIP 143141191210971217
Investments 86666660857
Inventories234265294360357354368372528510
Trade Receivables201252271258326364304294376352
Cash Equivalents 34452114102128
Others Assets10084118136184156130142215294
Total Assets 1,0971,1771,2921,4301,5831,5411,4471,4171,8222,112

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 16313613914795174183132248193
PBT 6172110631324203184161
Adjustment 131139129121127141143132137145
Changes in Working Capital -8-51-69-38-36-819-1-27-69
Tax Paid -21-24-321-7171-2-45-43
Cash Flow From Investing Activity -31-94-107-131-107-24-39-43-197-332
Capex -34-97-109-139-119-30-46-53-192-300
Net Investments 02000006-8-38
Others 31281268446
Cash Flow From Financing Activity -137-41-33-148-151-132-93-41146
Net Proceeds from Shares 000000020047
Net Proceeds from Borrowing -74-3074127-63-63-9-24143
Interest Paid -66-67-63-64-62-66-67-51-48-53
Dividend Paid -6-7-9-9-10-5-4-4-4-9
Others 964331852-173-503618
Net Cash Flow -5102-4-113-4117
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)12.8714.671911.756.0332.510.9822.5517.31
ROCE (%)13.514.5816.811.156.037.177.364.5218.7814.25
Asset Turnover Ratio1.311.321.251.21.091.21.190.951.511.38
PAT to CFO Conversion(x)3.982.621.812.673.1710.8814.0826.41.761.43
Working Capital Days
Receivable Days47556259656768815049
Inventory Days566166737969741006770
Payable Days30313436495655613726

Sangam (India) Ltd Stock News

Sangam (India) Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Sangam India on 28-Mar-2024 16:01 is ₹445.0.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 28-Mar-2024 16:01 the market cap of Sangam India stood at ₹2,203.6.
The latest P/E ratio of Sangam India as of 28-Mar-2024 16:01 is 37.47.
The latest P/B ratio of Sangam India as of 28-Mar-2024 16:01 is 2.26.
The 52-week high of Sangam India is ₹627.2 and the 52-week low is ₹210.2.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Sangam India is ₹2,630 ( Cr.) .

About Sangam (India) Ltd

Established in 1984, Sangam India Ltd. is one of the foremost producers in PV dyed yarn, cotton and OE yarn and also ready to stitch fabric. The NSE & BSE listed company produces millions of meters of PV fabric and denim fabric annually. This magnitude of production is possible with a highly organized production base. The Group has also introduced a seamless garment manufacturing facility with many seamless knitting machines that have the capacity to produce multi million pieces per annum.

Sangam started with only eight weaving machines in 1984 and is now being recognized as a leading brand in the textile industry, with presence in many countries. Sangam Group celebrated many such milestones in its journey so far. Some of them include backward integration to spinning in 1995 with 17,280 spindles of PV Dyed Yarn and further increasing it to 11,520 spindles in 1998. In 2003, the company built a 10.0 MW coal based captive power plant by adding 35,232 spindles. In 2009, by installing 1.13 Lakh Spindles, 130 Weaving Machines, 12 Knitting Machines and Captive Thermal Power Plants of 6 & 15 MW.

The company's major expansion kick-started in 2014, as the group saw an increase in Denim capacity to 35 million meters p.a. Installation of state-of-the-art Seamless Garment Machines with a capacity of 3.6 lakhs pieces p.a. The next big step was venturing into the B2C market space with the launch of C9 Airwear, a casual wear & active wear apparel brand for women in 2015. C9 Airwear is available across 1000 multi brand outlets in India and all major digital retail portals such as Myntra, Amazon, Nykaa, Flipkart etc.

Presently, the company is well-positioned as one of the most vertically integrated textile players across the country. It is self-sufficient in all aspects owing to its presence across the national end-to-end textile value chain. With its rich experience, quality product offerings, and strong manufacturing expertise, the company has created a robust clientele. Its renowned client base include Banswara Syntex, Siyaram, BSL, Vimal, RSWM Limited, Arvind Limited, Trident Limited, Marks & Spencer, Reliance Trends, Zivame, Myntra, Lifestyle International, Benetton and Westside, among others.

Business area of the company

The company is engaged in manufacturing of cotton, synthetic blended yarns, open yarn, synthetic and denim fabric weaves, cotton knitted fabric seamless garment knitting, and fabric processing. It also offers a range of woven PV fabrics, for suiting and bottom wear. The Company’s flagship brands include Sangam Suiting and Sangam Denim.

Milestones

  • 1984: Sangam commenced operation with eight weaving machines.
  • 1995: The group commenced backward integration with 17,280 spindles of PV Dyed Yarn.
  • 1998: Further addition of 11,520 spindles was made to the spinning capacity.
  • 2003: The capacity was augmented by addition of 35,232 spindles & which led to adding a 10.0 MW coal based thermal power plant.
  • 2009: The company completed installation of 1.13 Lakh Spindles, 130 Weaving Machines, 12 Knitting Machines and Captive Thermal Power Plants of 6 & 15 MW.
  • 2014: The group saw an increase in Denim capacity to 32 million meters p.a. Installation of state of the art Seamless Garment Machines with capacity of 3.6 lakhs pieces p.a.
  • 2015: The company launched it's seamless wear brand- C9, One piece garments free of side seams, made of light, smooth and soft to touch fabrics.
  • 2021: Incorporated wholly owned Subsidiary Company namely ‘Sangarn Ventures’ (SVL) on December 03, 2021.
  • 2022: Granted approval under Production Linked Incentive (PLI) Scheme from Ministry of Textile, Government of India for manufacturing of textiles products in India.
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