Sangam (India) Ltd Stock Analysis

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

BSE Share Price 25-Nov-2022 18:01
266.10 6.60 (2.54%)

DeciZen - Make an Informed Decision on Sangam India

Overall Rating

1. Quality

2. Valuation

Fair

3. Price Trend

Sangam India Price Chart

P/E Ratio (SA) :
6.63
Market Cap :
1,198.7 Cr.
52-wk low :
232.9
52-wk high :
423.4
Bole Toh?

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 Fair 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'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 10.1%9%10.2%11.6%8.1%5.3%5.1%5.1%3.1%13.8%-
Value Creation Index -0.3-0.4-0.3-0.2-0.4-0.6-0.6-0.6-0.8-0.0-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 1,4791,4331,4691,5041,5941,6381,8741,7831,3542,4382,815
YoY Gr. Rt. %--3.1%2.5%2.4%6%2.8%14.4%-4.8%-24.1%80.1%-
Adj EPS 12.69.912.819.211.95.64.73.50.434.140.1
YoY Gr. Rt. %--21.8%29.9%50%-38.1%-52.8%-17.3%-25.2%-87.6%7834.9%-
BVPS (₹) 75.684.194.3111.4125.3130.8133.6135.3128.9159180.2
Adj Net Profit 49.838.950.675.84722.218.313.71.9148181
Cash Flow from Ops. 15516313613914795.417418313294.8-
Debt/CF from Ops. 4.33.64.64.74.88.34.13.54.58-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 5.7%8.9%9.2%80.1%
Adj EPS 11.7%23.4%94.3%7834.9%
BVPS 8.64.9623.4
Share Price 16.6% 5% 75.6% 3.1%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 18.112.414.418.710.14.43.52.60.323.223.7
Op. Profit Mgn % 14.113.214.215117.899.19.112.612.7
Net Profit Mgn % 3.42.73.4531.410.80.16.16.4
Debt to Equity 2.21.81.71.51.41.51.31.21.11.10.3
Working Cap Days 123132138153161179170172217144130
Cash Conv. Cycle 7384951081111151041121479729

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 23.70%

Net Profit is growing at healthy rate in last 3 years 94.32%

Sales growth is good in last 4 quarters at 45.90%

Sales growth has been subdued in last 3 years 9.17%

Debt to equity has increased versus last 3 years average to 1.10

Latest Financials - Sangam (India) Ltd.

Standalone Consolidated
TTM EPS (₹) 40.1 40.1
TTM Sales (₹ Cr.) 2,815 2,811
BVPS (₹.) 180.2 180.2
Reserves (₹ Cr.) 767 767
P/BV 1.48 1.48
PE 6.63 6.63
From the Market
52 Week Low / High (₹) 232.85 / 423.40
All Time Low / High (₹) 3.44 / 423.40
Market Cap (₹ Cr.) 1,199
Equity (₹ Cr.) 45.1
Face Value (₹) 10
Industry PE 23.7

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 (%)

News

Sangam (India) Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Sangam India on 25-Nov-2022 18:01 is : 266.1.
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 25-Nov-2022 18:01 the market cap of Sangam India stood at ₹ 1,198.7.
The latest PE ratio of Sangam India as of 25-Nov-2022 18:01 is 6.63.
The latest PB ratio of Sangam India as of 25-Nov-2022 18:01 is 1.48
The 52-week high of Sangam India is ₹ 423.4 and the 52-week low is ₹ 232.8.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue / sales of Sangam India is ₹ 2,815 ( 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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