BSE:521180

Stock Analysis Report

Executive Summary

Super Spinning Mills Limited manufactures and sells cotton yarn for knitting and weaving in India.

Rewards

Trading at 90.5% below its fair value

Risk Analysis

Earnings have declined by -6.88% per year over past 5 years

Does not have a meaningful market cap (₹177M)

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months



Snowflake Analysis

Fair value with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 521180's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-8.0%

521180

0.2%

IN Luxury

-0.4%

IN Market


1 Year Return

-48.7%

521180

16.6%

IN Luxury

11.1%

IN Market

Return vs Industry: 521180 underperformed the Indian Luxury industry which returned 16.6% over the past year.

Return vs Market: 521180 underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

521180IndustryMarket
7 Day-8.0%0.2%-0.4%
30 Day-16.1%3.3%-1.2%
90 Day-34.3%8.5%3.3%
1 Year-48.7%-48.7%17.3%16.6%13.0%11.1%
3 Year-75.3%-75.3%53.8%52.0%25.3%18.6%
5 Year-50.5%-50.5%103.0%96.4%35.4%23.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Super 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: 521180 (₹3.22) is trading below our estimate of fair value (₹33.75)

Significantly Below Fair Value: 521180 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 521180 is unprofitable, so we can't compare its PE Ratio to the Luxury industry average.

PE vs Market: 521180 is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 521180's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 521180 is good value based on its PB Ratio (0.1x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

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

19.8%

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 Super 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 Super Spinning Mills performed over the past 5 years?

-6.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 521180 is currently unprofitable.

Growing Profit Margin: 521180 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 521180 is unprofitable, and losses have increased over the past 5 years at a rate of -6.9% per year.

Accelerating Growth: Unable to compare 521180's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 521180 is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (2.7%).


Return on Equity

High ROE: 521180 has a negative Return on Equity (-13.06%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Super Spinning Mills's financial position?


Financial Position Analysis

Short Term Liabilities: 521180's short term assets (₹818.9M) do not cover its short term liabilities (₹1.3B).

Long Term Liabilities: 521180's short term assets (₹818.9M) exceed its long term liabilities (₹124.5M).


Debt to Equity History and Analysis

Debt Level: 521180's debt to equity ratio (37%) is considered satisfactory.

Reducing Debt: 521180's debt to equity ratio has reduced from 215.3% to 37% over the past 5 years.


Balance Sheet

Inventory Level: 521180 has a high level of physical assets or inventory.

Debt Coverage by Assets: 521180's debt is covered by short term assets (assets are 1.8x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if 521180 has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if 521180 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.5%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 521180's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 521180's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 521180's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 521180's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 521180 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 521180's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.4yrs

Average management tenure


CEO

Sumanth Ramamurthi (60yo)

1.7yrs

Tenure

0

Mr. Sumanth Ramamurthi, B.S., has been Managing Director of Super Spinning Mills Ltd. since June 1, 2018. Mr. Ramamurthi served as the Managing Director of Kakatiya Textiles Ltd. from May 30, 2011 to Septe ...


CEO Compensation Analysis

Compensation vs Market: Sumanth's total compensation ($USD0.00) is below average for companies of similar size in the Indian market ($USD50.14K).

Compensation vs Earnings: Sumanth's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Sumanth Ramamurthi
MD & Executive Chairman1.7yrsno data17.16% 30.4m
B. Reddy
Chief Financial Officer1yrs₹951.21kno data
G. Narmatha
Company Secretary & Compliance Officer1.4yrs₹414.50kno data
N. Sreedhar
Vice President of Operations0yrsno datano data
Nataraaj S.M.
DGM of Marketing0yrsno datano data
C. Rangaraj
Senior Manager of Human Resource0yrsno datano data

1.4yrs

Average Tenure

48yo

Average Age

Experienced Management: 521180's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Sumanth Ramamurthi
MD & Executive Chairman1.7yrsno data17.16% 30.4m
Sudarsan Varadaraj
Independent Non-Executive Director27.1yrs₹38.00k0.55% 977.9k
Coimbatore Kumar
Independent Non-Executive Director5.7yrs₹110.00kno data
Suguna Ravichandran
Independent Non-Executive Director5.7yrs₹70.00kno data
B. Narayana
Independent Non-Executive Director2.7yrs₹100.00kno data
Appanaickenpatti Balasundharam
Additional Non-Independent Director2.7yrsno datano data

5.7yrs

Average Tenure

58yo

Average Age

Experienced Board: 521180's board of directors are considered experienced (5.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Super Spinning Mills Limited
  • Ticker: 521180
  • Exchange: BSE
  • Founded: 1962
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹177.100m
  • Shares outstanding: 55.00m
  • Website: https://www.superspinning.com

Number of Employees


Location

  • Super Spinning Mills Limited
  • Elgi Towers
  • Green Fields
  • Coimbatore
  • Tamil Nadu
  • 641045
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
521180BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 2004
SUPERSPINNSEI (National Stock Exchange of India)YesEquity SharesININRJan 2004

Biography

Super Spinning Mills Limited manufactures and sells cotton yarn for knitting and weaving in India. It offers ring, compact, compact elitwist, TFO doubled, gassed, OE and TFO, organic, and BCI cotton yarns; and specialty yarns, such as modal and micro modal, tencel and micro tencel, cotton blended modal and micro modal, and cotton blended tencel and micro tencel yarns. The company also exports its products. Super Spinning Mills Limited was founded in 1962 and is based in Coimbatore, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 12:49
End of Day Share Price2020/02/14 00:00
Earnings2019/12/31
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.