Check Before You Invest : Amarjothi Spinning Mills Ltd

Snapshot

Q.1 Which industry/sub-sector does Amarjothi Spinning Mills Ltd belong to?

Amarjothi Spinning Mills Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile - Spinning segment.

Q.2 Is Amarjothi Spinning Mills Ltd a good quality company?

Amarjothi Spinning Mills Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Amarjothi Spinning Mills Ltd undervalued or overvalued?

Amarjothi Spinning Mills Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Amarjothi Spinning Mills Ltd a good buy now?

Amarjothi Spinning Mills Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Amarjothi Spinning Mills Ltd?

Amarjothi Spinning Mills Ltd revenue growth is 12.2% for FY-2025, which is above its 5-year CAGR of 3.02%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Amarjothi Spinning Mills Ltd?

Amarjothi Spinning Mills Ltd Return on capital employed is 9.98% for FY-2025, which is in line with its 5-year historical median of 9.98%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Amarjothi Spinning Mills Ltd?

Amarjothi Spinning Mills Ltd Return on Asset is 3.97%, which is in line with its 5-year historical median of 3.97%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Amarjothi Spinning Mills Ltd?

Amarjothi Spinning Mills Ltd Return on equity is 5.96% for FY-2025, which is in line with its 5-year historical median of 5.96%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Amarjothi Spinning Mills Ltd?

Amarjothi Spinning Mills Ltd Cash conversion cycle is 186 days, above its 5-year historical median of 159 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.76	0.76
ROE	5.96	5.96
ROCE	9.98	9.98
Cash Conversion Cycle	186 days	159 days

Q.6 Gross Profit margin of Amarjothi Spinning Mills Ltd?

Amarjothi Spinning Mills Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.6% for FY-2025, which is in line with its 5-year median of 11.9%, indicating stable margins.

Q.7 Operating Profit Margin of Amarjothi Spinning Mills Ltd?

Amarjothi Spinning Mills Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.76% for FY-2025, which is in line with its 5-year median of 14.76% indicating stable margins.

Q.8 Net Profit Margin of Amarjothi Spinning Mills Ltd?

Amarjothi Spinning Mills Ltd Net Profit Margin is 5.19% for FY-2025, is in line with with its 5-year median of 5.19%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	11.6	11.9
Operating Profit Margin	14.76	14.76
Net Profit Margin	5.19	5.19

Q.9 Debt to Equity ratio of Amarjothi Spinning Mills Ltd?

Amarjothi Spinning Mills Ltd Debt-to-Equity ratio is 0.27, which is lower with the industry average of 0.4, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Amarjothi Spinning Mills Ltd?

Amarjothi Spinning Mills Ltd Debt to cash flow from operations is 2.2, which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Amarjothi Spinning Mills Ltd?

Promoters hold 60.08% of the Amarjothi Spinning Mills Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Amarjothi Spinning Mills Ltd vs industry peers?

Amarjothi Spinning Mills Ltd revenue CAGR is 3.02%, compared to the industry median CAGR of 2.18%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	12.2	2.2
Gross Profit Growth	9.3	NAN
Operating Profit Growth	8	-2.1
Net Profit Growth	37.7	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.76	1
ROE	5.96	3.73
ROCE	9.98	6.18
Cash Conversion Cycle (days)	186.37	72

Valuation & price assessment

Q.1 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	8.25	8.54	9.40
Price to Book	0.47	0.67	0.72
Price to Sales	0.54	0.55	0.40
EV to EBITDA	3.93	5.10	7.20

Q.2 Stock return of Amarjothi Spinning Mills Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 3.8% based on the current price.

Q.3 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	3.8%	5.4%	-8.4%	-8.2%

Q.4 Valuation ratios of Amarjothi Spinning Mills Ltd vs historical?

The current P/E is similar that its historical median.

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