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Sri Nachammai Cotton Mills Ltd. Stock Analysis

Small Cap
Evaluated by 43 users | BSE: 521234 | NSE: |
Textile - Spinning
Sri Nachammai Cotton Mills Limited (SNCM) was incorporated in March 1980 as a wholly owned subsidiary of 'The Jawahar Mills Limited'. The assets of the Chettinad unit of the Jawahar Mills Limited, were transferred to SNCM in May 1980. A transfer deed for the transfer was executed and...

Analysis of Financial Track Record

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.
Value Creation
 Jun'10Jun'11Jun'12Jun'13Jun'14Jun'15Mar'16Mar'17Mar'18Mar'19
Return on Capital Employed 15.7%2.22%-2.34%11.8%6.91%4.46%1.53%5.33%4.89%4.57%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 115127104151183162151168157160
Y-o-Y Gr. Rt.-10.1%-18.3%45.7%21%-11.2%-6.7%11.2%-6.6%1.6%
Adjusted EPS (Rs.) 10.61-8.24-18.1110.414.05-1.67-5.591.551.710.57
Y-o-Y Gr. Rt.--177.7%NANA-61.1%-141.2%NANA10.3%-66.7%
Book Value per Share (Rs.) 23.9416.34-1.736.5412.627.643.664.3752.0452.37
Adjusted Net Profit 4.6-3.5-7.84.51.7-0.7-2.40.70.70.2
Net Op. Cash Flow (Rs. Cr.) 2.2-4.88.27.28.64.79.710-0.57.1
Debt to Cash Flow from Ops 21.39-14.326.749.718.7414.438.886.03-145.318.96
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Sri Nachammai Cotton Mills Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 3.7%-2.6%1.8%1.6%
Adjusted EPS -27.7%-32.4%NA-66.7%
Book Value per Share 9.132.9142.80.6
Share Price -3% 3.6% -12.6% 30.3%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Jun'10Jun'11Jun'12Jun'13Jun'14Jun'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) 59.53-41.06-73.2727.929.11-3.72-10.464.023.751.09
Operating Profit Margin (%) 10.325.461.1210.046.795.864.655.424.143.83
Net Profit Margin (%) 3.96-2.8-7.522.960.95-0.44-1.590.390.470.15
Debt to Equity 4.69.843.853.923.683.73.983.562.922.85
Working Capital Days 151192234150140166227148173191
Cash Conversion Cycle 101141167123110131193131152164
Entity Percentage Holding
Promoters 55.04%
Institutions 0.01%
Non-Institutions 44.95%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Sri Nachammai Cotton Mills Ltd.'s performance infers:

Sri Nachammai Cotton Mills Ltd. earnings have declined by -32.4%, whereas share price has appreciated 3.6% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Sri Nachammai Cotton Mills Ltd. share prices over the last 10 years. Here is what we found out:

Sri Nachammai Cotton Mills Ltd. share price has appreciated -12.2% annually over the past ten years.

Sri Nachammai Cotton Mills Limited (SNCM) was incorporated in March 1980 as a wholly owned subsidiary of 'The Jawahar Mills Limited'. The assets of the Chettinad unit of the Jawahar Mills Limited, were transferred to SNCM in May 1980. A transfer deed for the transfer was executed and registered in March 1982. It ceased to be a subsidiary of The Jawahar Mills Limited with the allotment of the said 46,000 shares on 9.8.1982. In September 1984, the company issued 50,000 equity shares of Rs.10

Sri Nachammai Cotton Mills Limited (SNCM) was incorporated in March 1980 as a wholly owned subsidiary of 'The Jawahar Mills Limited'. The assets of the Chettinad unit of the Jawahar Mills Limited, were transferred to SNCM in May 1980. A transfer deed for the transfer was executed and registered in March 1982. It ceased to be a subsidiary of The Jawahar Mills Limited with the allotment of the said 46,000 shares on 9.8.1982. In September 1984, the company issued 50,000 equity shares of Rs.10 each for cash at par to the existing shareholders as right shares. Since then, the company has made five bonus issues.

The company has been expanding and modernizing its plant over the years. All expansions and modernisation schemes completed so far has been funded from internal accruals and Long-term borrowings. It has expanded its spindlage from 16,120 spindles in 1980 to the present level of 43,448 spindles and 504 rotors.

The company's spinning mills are situated at Chettinad, Sivaganga district. The company has two units there. The company has taken another unit called 'C' Unit from M/s Supreme Yarn Spinners Limited, on lease from 5.5.1995, situated at Veeranam village, Salem. The company manufactures combed and carded cotton hosiery and hank yarn of counts ranging from 10s to 40s which are used by manufacturers to convert the same into fabric or garments for dyeing and export.

The company has issued 11,10,000 equity shares of Rs.10/- each at a premium of Rs.60 per share to the public in 1995.

The company has attained a sound financial footing with its good performance over years and is surging ahead towards better prospects every year.

Product manufactured by the company:

The company is a manufacturer of Combed and Carded Cotton Hosiery Yarn.

Achievements/ recognition

Sri Nachammai Cotton Mills Ltd ranked 900th in the BS 1000 listing of top Indian companies in terms of sales in 2002-2003.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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