BSE:521097

Stock Analysis Report

Amarjothi Spinning Mills

Executive Summary

Amarjothi Spinning Mills Limited manufactures and sells yarns in India.

Rewards

Trading at 89.4% below its fair value

Earnings grew by 8.5% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Does not have a meaningful market cap (₹475M)

Unstable dividend track record

Highly volatile share price over past 3 months

+ 2 more risks


Snowflake Analysis

Undervalued with proven track record and pays a dividend.

Share Price & News

How has Amarjothi Spinning Mills's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 521097's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.3%

521097

1.4%

IN Luxury

-0.3%

IN Market


1 Year Return

-13.3%

521097

15.4%

IN Luxury

9.9%

IN Market

Return vs Industry: 521097 underperformed the Indian Luxury industry which returned 8.4% over the past year.

Return vs Market: 521097 underperformed the Indian Market which returned 6.7% over the past year.


Shareholder returns

521097IndustryMarket
7 Day4.3%1.4%-0.3%
30 Day30.7%6.3%2.6%
90 Day27.0%2.6%5.9%
1 Year-10.7%-13.3%16.2%15.4%11.9%9.9%
3 Year-46.2%-49.2%57.9%55.9%30.2%23.3%
5 Year7.1%-3.2%97.4%94.0%37.1%24.8%

Price Volatility Vs. Market

How volatile is Amarjothi Spinning Mills's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Amarjothi Spinning Mills undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 521097 (₹70.5) is trading below our estimate of fair value (₹662.34)

Significantly Below Fair Value: 521097 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 521097 is good value based on its PE Ratio (4.5x) compared to the Luxury industry average (11.2x).

PE vs Market: 521097 is good value based on its PE Ratio (4.5x) compared to the Indian market (13.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 521097's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 521097 is good value based on its PB Ratio (0.4x) compared to the IN Luxury industry average (0.6x).


Next Steps

Future Growth

How is Amarjothi Spinning Mills forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.3%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Amarjothi Spinning Mills has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Amarjothi Spinning Mills performed over the past 5 years?

3.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 521097 has a large one-off gain of ₹51.2M impacting its September 30 2019 financial results.

Growing Profit Margin: 521097's current net profit margins (5.6%) are higher than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: 521097's earnings have grown by 3% per year over the past 5 years.

Accelerating Growth: 521097's earnings growth over the past year (8.5%) exceeds its 5-year average (3% per year).

Earnings vs Industry: 521097 earnings growth over the past year (8.5%) exceeded the Luxury industry 1.2%.


Return on Equity

High ROE: 521097's Return on Equity (8.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Amarjothi Spinning Mills's financial position?


Financial Position Analysis

Short Term Liabilities: 521097's short term assets (₹878.7M) exceed its short term liabilities (₹248.4M).

Long Term Liabilities: 521097's short term assets (₹878.7M) exceed its long term liabilities (₹864.7M).


Debt to Equity History and Analysis

Debt Level: 521097's debt to equity ratio (58.1%) is considered high.

Reducing Debt: 521097's debt to equity ratio has reduced from 146.2% to 58.1% over the past 5 years.

Debt Coverage: 521097's debt is well covered by operating cash flow (136.6%).

Interest Coverage: 521097's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet

Inventory Level: 521097 has a high level of physical assets or inventory.

Debt Coverage by Assets: 521097's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

What is Amarjothi Spinning Mills's current dividend yield, its reliability and sustainability?

2.55%

Current Dividend Yield


Dividend Yield vs Market

company2.6%marketbottom25%0.5%markettop25%2.3%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 521097's dividend (2.84%) is higher than the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: 521097's dividend (2.84%) is in the top 25% of dividend payers in the Indian market (2.31%)


Stability and Growth of Payments

Stable Dividend: 521097's dividend payments have been volatile in the past 10 years.

Growing Dividend: 521097's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (12.9%), 521097's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Amarjothi Spinning Mills's salary, the management and board of directors tenure and is there insider trading?

4.5yrs

Average management tenure


CEO

Rajan Premchander (51yo)

0yrs

Tenure

₹7,812,743

Compensation

Sri. R. Premchander, B.Com., MBA has been Managing Director at Amarjothi Spinning Mills Ltd. since December 16, 1987 and also serves as its a Director. Sri. Premchander has over 20 years experience in mark ...


CEO Compensation Analysis

Compensation vs Market: Rajan's total compensation ($USD110.25K) is above average for companies of similar size in the Indian market ($USD50.75K).

Compensation vs Earnings: Rajan's compensation has increased by more than 20% in the past year.


Management Age and Tenure

4.5yrs

Average Tenure

51yo

Average Age

Experienced Management: 521097's management team is considered experienced (4.5 years average tenure).


Board Age and Tenure

11.4yrs

Average Tenure

53yo

Average Age

Experienced Board: 521097's board of directors are seasoned and experienced ( 11.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.4%.


Management Team

  • Rajan Premchander (51yo)

    MD & Executive Director

    • Compensation: ₹7.81m
  • R. Jaichander (45yo)

    Joint MD & Whole-Time Director

    • Compensation: ₹7.81m
  • N. Radhakrishnan (71yo)

    Executive Director

    • Tenure: 14.4yrs
    • Compensation: ₹4.50k
  • P. Singaravelu

    Chief Financial Officer

    • Tenure: 4.5yrs
    • Compensation: ₹589.41k
  • K. Mohanapriya

    Company Secretary & Compliance Officer

    • Tenure: 2.7yrs
    • Compensation: ₹247.01k

Board Members

  • V. Manikandan (53yo)

    Independent Non-Executive Director

    • Compensation: ₹4.50k
  • V. Subramaniam (79yo)

    Independent Non-Executive Director

    • Tenure: 28.3yrs
    • Compensation: ₹4.50k
  • Rajan Premchander (51yo)

    MD & Executive Director

    • Compensation: ₹7.81m
  • R. Jaichander (45yo)

    Joint MD & Whole-Time Director

    • Compensation: ₹7.81m
  • N. Rajan (80yo)

    Chairman

    • Compensation: ₹1.57m
  • N. Radhakrishnan (71yo)

    Executive Director

    • Tenure: 14.4yrs
    • Compensation: ₹4.50k
  • V. Subramanian (74yo)

    Independent Non-Executive Director

    • Tenure: 11.4yrs
    • Compensation: ₹4.50k
  • Muthur Sivakumar (41yo)

    Independent Non-Executive Director

    • Compensation: ₹4.50k
  • M. Moorthi (44yo)

    Non-Executive Director

    • Tenure: 6yrs
    • Compensation: ₹213.67k
  • Meiyappan Amutha

    Independent Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: ₹4.50k

Company Information

Amarjothi Spinning Mills Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Amarjothi Spinning Mills Limited
  • Ticker: 521097
  • Exchange: BSE
  • Founded: 1987
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹552.488m
  • Shares outstanding: 6.75m
  • Website: https://www.amarjothi.net

Number of Employees


Location

  • Amarjothi Spinning Mills Limited
  • Amarjothi House
  • 157, Kumaran Road
  • Tirupur
  • Tamil Nadu
  • 641601
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
521097BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 2002

Biography

Amarjothi Spinning Mills Limited manufactures and sells yarns in India. It offers blended melange yarns for hosiery, woven, and home textiles; and fabrics. The company was incorporated in 1987 and is based in Tirupur, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/27 12:38
End of Day Share Price2020/01/27 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.