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Check Before You Invest : Sambandam Spinning Mills Ltd

BSE: 521240 NSE: SAMBANDAM ISIN: INE304D01012
  |   Sector:  Textiles & Apparels   |   Industry:  Textile - Spinning

Snapshot

Q.1 Which industry/sub-sector does Sambandam Spinning Mills Ltd belong to?
Sambandam Spinning Mills Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile - Spinning segment.
Q.2 Is Sambandam Spinning Mills Ltd a good quality company?
Sambandam Spinning Mills Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Sambandam Spinning Mills Ltd undervalued or overvalued?
Sambandam Spinning Mills Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Sambandam Spinning Mills Ltd a good buy now?
Sambandam 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 Sambandam Spinning Mills Ltd?
Sambandam Spinning Mills Ltd revenue growth is 23.1% for FY-2025 , which is above its 5 year CAGR of 7% , indicating faster growth.
Q.2 Gross Profit margin of Sambandam Spinning Mills Ltd?
Sambandam Spinning Mills Ltd Gross profit margin which is the profit after deduction of direct costs, is -0.4% for FY-2025 , which is below its 5 year median of 0% , indicating decreasing margins.
Q.3 Operating Profit Margin of Sambandam Spinning Mills Ltd?
Sambandam Spinning Mills Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 3.77% for FY-2025 , which is in line with its 5 year median of 3.77% indicating stable margins.
Q.4 Net Profit Margin of Sambandam Spinning Mills Ltd?
Sambandam Spinning Mills Ltd Net Profit Margin is -2.77% for FY-2025 , is in line with with its 5 year median of -2.77%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin -0.4 -
Operating Profit Margin 3.77 3.77
Net Profit Margin -2.77 -2.77
Q.5 Return on Asset of Sambandam Spinning Mills Ltd?
Sambandam Spinning Mills Ltd Return on Asset is -2.85%, which is in line with its 5 year historical median of -2.85%, indicating stable asset utilization efficiency.
Q.6 Return on Equity (ROE) of Sambandam Spinning Mills Ltd?
Sambandam Spinning Mills Ltd Return on equity is -8.4% for FY-2025 , which is below its historical median of -8.27%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Sambandam Spinning Mills Ltd?
Sambandam Spinning Mills Ltd Return on capital employed is 0.93% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Sambandam Spinning Mills Ltd?
Sambandam Spinning Mills Ltd Cash conversion cycle is 106 days, below its historical median of 112 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.03 0.91
ROE -8.4 -8.27
ROCE 0.93 1.08
Cash Conversion Cycle 106 days 112 days
Q.9 Debt to Equity ratio of Sambandam Spinning Mills Ltd?
Sambandam Spinning Mills Ltd Debt-to-Equity ratio is 1.39 , which is above with the industry average of 0.36 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Sambandam Spinning Mills Ltd?
Sambandam Spinning Mills Ltd Debt to cash flow from operations is 7.09 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Sambandam Spinning Mills Ltd?
Promoters hold 50.24% of the Sambandam Spinning Mills Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Sambandam Spinning Mills Ltd vs industry peers?
Sambandam Spinning Mills Ltd revenue CAGR is 7.03% , compared to the industry median CAGR of 1.47% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 268.5 118.3
Gross Profit -1.1 3
Operating Profit 9.9 4.4
Net Profit -7.4 0.3
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.03 0.94
ROE -8.4 -
ROCE 0.93 5.99
Cash Conversion Cycle (days) 106.12 61

Valuation & price assessment

Q.1 Stock return of Sambandam 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.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 3.8% 4.5% -12.1% -27.9%
Q.3 Valuation ratios of Sambandam Spinning Mills Ltd vs historical?
The current P/E is similar that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings - 0.00 19.51
Price to Book 0.49 0.32 0.73
Price to Sales 0.16 0.17 0.34
EV to EBITDA 10.02 7.79 7.32

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