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Check Before You Invest : Sri Nachammai Cotton Mills Ltd

BSE: 521234 NSE: ISIN: INE443E01016
  |   Sector:  Textiles & Apparels   |   Industry:  Textile - Spinning

Snapshot

Q.1 Which industry/sub-sector does Sri Nachammai Cotton Mills Ltd belong to?
Sri Nachammai Cotton Mills Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile - Spinning segment.
Q.2 Is Sri Nachammai Cotton Mills Ltd a good quality company?
Sri Nachammai Cotton Mills Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Sri Nachammai Cotton Mills Ltd undervalued or overvalued?
Sri Nachammai Cotton Mills Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Sri Nachammai Cotton Mills Ltd a good buy now?
Sri Nachammai Cotton 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 Sri Nachammai Cotton Mills Ltd?
Sri Nachammai Cotton Mills Ltd revenue growth is 4.2% for FY-2025 , which is above its 5 year CAGR of -13.6% , indicating faster growth.
Q.2 Gross Profit margin of Sri Nachammai Cotton Mills Ltd?
Sri Nachammai Cotton Mills Ltd Gross profit margin which is the profit after deduction of direct costs, is -3.1% for FY-2025 , which is in line with its 5 year median of -3.1% , indicating stable margins.
Q.3 Operating Profit Margin of Sri Nachammai Cotton Mills Ltd?
Sri Nachammai Cotton Mills Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 0.56% for FY-2025 , which is in line with its 5 year median of 0.56% indicating stable margins.
Q.4 Net Profit Margin of Sri Nachammai Cotton Mills Ltd?
Sri Nachammai Cotton Mills Ltd Net Profit Margin is -4.63% for FY-2025 , is below with its 5 year median of -2.84%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin -3.1 -3.1
Operating Profit Margin 0.56 0.56
Net Profit Margin -4.63 -2.84
Q.5 Return on Asset of Sri Nachammai Cotton Mills Ltd?
Sri Nachammai Cotton Mills Ltd Return on Asset is -3.7%, which is below its 5 year historical median of -2.85%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Sri Nachammai Cotton Mills Ltd?
Sri Nachammai Cotton Mills Ltd Return on equity is -18.08% for FY-2025 , which is below its historical median of -12.92%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Sri Nachammai Cotton Mills Ltd?
Sri Nachammai Cotton Mills Ltd Return on capital employed is -0.25% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Sri Nachammai Cotton Mills Ltd?
Sri Nachammai Cotton Mills Ltd Cash conversion cycle is 213 days, below its historical median of 213 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.8 1.01
ROE -18.08 -12.92
ROCE -0.25 -0.25
Cash Conversion Cycle 213 days 213 days
Q.9 Debt to Equity ratio of Sri Nachammai Cotton Mills Ltd?
Sri Nachammai Cotton Mills Ltd Debt-to-Equity ratio is 2.83 , 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 Sri Nachammai Cotton Mills Ltd?
Sri Nachammai Cotton Mills Ltd Debt to cash flow from operations is 117.88 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Sri Nachammai Cotton Mills Ltd?
Promoters hold 55.52% of the Sri Nachammai Cotton Mills Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Sri Nachammai Cotton Mills Ltd vs industry peers?
Sri Nachammai Cotton Mills Ltd revenue CAGR is -13.60% , compared to the industry median CAGR of 1.47% , indicating stable growth and maintaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 69.2 118.3
Gross Profit -2.1 3
Operating Profit 0.4 4.4
Net Profit -3.2 0.3
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.8 0.94
ROE -18.08 -
ROCE -0.25 5.99
Cash Conversion Cycle (days) 213.48 61

Valuation & price assessment

Q.1 Stock return of Sri Nachammai Cotton Mills Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 11% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 11% 22.5% 0.7% -6.9%
Q.3 Valuation ratios of Sri Nachammai Cotton Mills Ltd vs historical?
The current P/E is lower 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 - 5.66 19.51
Price to Book 0.85 1.04 0.73
Price to Sales 0.21 0.13 0.34
EV to EBITDA 32.87 7.23 7.32

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