BSE:521234

Stock Analysis Report

Sri Nachammai Cotton Mills

Executive Summary

Sri Nachammai Cotton Mills Limited engages in the textiles business in India.


Snowflake Analysis

Mediocre balance sheet and overvalued.

Share Price & News

How has Sri Nachammai Cotton Mills's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 521234's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.9%

521234

-0.5%

IN Luxury

-1.5%

IN Market


1 Year Return

-32.2%

521234

18.2%

IN Luxury

10.7%

IN Market

Return vs Industry: 521234 underperformed the Indian Luxury industry which returned 18.2% over the past year.

Return vs Market: 521234 underperformed the Indian Market which returned 10.7% over the past year.


Shareholder returns

521234IndustryMarket
7 Day-4.9%-0.5%-1.5%
30 Day-17.9%3.0%-2.7%
90 Day-0.4%9.2%1.3%
1 Year-32.2%-32.2%19.0%18.2%12.7%10.7%
3 Year-6.4%-6.4%52.2%48.8%22.0%15.1%
5 Year-23.2%-23.2%106.9%100.1%34.5%22.0%

Price Volatility Vs. Market

How volatile is Sri Nachammai Cotton Mills's share price compared to the market and industry in the last 5 years?


Simply Wall St News

1 year ago | Simply Wall St

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1 year ago | Simply Wall St

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1 year ago | Simply Wall St

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Valuation

Is Sri Nachammai Cotton Mills undervalued compared to its fair value and its price relative to the market?

0.22x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 521234's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 521234's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 521234 is unprofitable, so we can't compare its PE Ratio to the Luxury industry average.

PE vs Market: 521234 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 521234's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 521234 is good value based on its PB Ratio (0.2x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is Sri Nachammai Cotton Mills forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.9%

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 Sri Nachammai Cotton 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 Sri Nachammai Cotton Mills performed over the past 5 years?

26.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 521234 is currently unprofitable.

Growing Profit Margin: 521234 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 521234 is unprofitable, but has reduced losses over the past 5 years at a rate of 26.8% per year.

Accelerating Growth: Unable to compare 521234's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 521234 is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (5.6%).


Return on Equity

High ROE: 521234 has a negative Return on Equity (-4.33%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sri Nachammai Cotton Mills's financial position?


Financial Position Analysis

Short Term Liabilities: 521234's short term assets (₹884.7M) exceed its short term liabilities (₹658.5M).

Long Term Liabilities: 521234's short term assets (₹884.7M) exceed its long term liabilities (₹357.9M).


Debt to Equity History and Analysis

Debt Level: 521234's debt to equity ratio (301.3%) is considered high.

Reducing Debt: 521234's debt to equity ratio has reduced from 323.8% to 301.3% over the past 5 years.


Balance Sheet

Inventory Level: 521234 has a high level of physical assets or inventory.

Debt Coverage by Assets: 521234's debt is covered by short term assets (assets are 1.4x 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: 521234 has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: 521234 has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is Sri Nachammai Cotton Mills's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 521234's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 521234'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 521234's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 521234's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 521234'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?

9.5yrs

Average board tenure


CEO

P. Umayal (70yo)

₹1,529,000

Compensation

Mrs. P. Umayal, B.Sc., has been Joint Managing Director of Sri Nachammai Cotton Mills Limited since December 19, 2007 and its Chairman since November 18, 2015 also serves as its Executive Director since Au ...


CEO Compensation Analysis

Compensation vs Market: P.'s total compensation ($USD21.37K) is below average for companies of similar size in the Indian market ($USD50.34K).

Compensation vs Earnings: P.'s compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
P. Umayal
Chairman & Joint MD0yrs₹1.53m24.1% 11.9m
P. Palaniappan
MD & Executive Director35.3yrs₹1.55m19.1% 9.5m
A. Annamalai
Non-Executive Director22.4yrs₹10.00k0.086% 42.8k
A. Alagappan
Non Executive Independent Director23.4yrs₹11.00k0.0023% 1.2k
P. Subbiah
Non Executive Independent Director9.5yrs₹8.00kno data
S. Ravichandran
Non Executive Independent Director9.5yrs₹13.00k0.19% 94.9k
C. Renuka
Non Executive Director1.8yrs₹2.00kno data
Sujatha Sivakumar
Independent Director0.5yrsno datano data

9.5yrs

Average Tenure

66.5yo

Average Age

Experienced Board: 521234's board of directors are considered experienced (9.5 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

Sri Nachammai Cotton Mills Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sri Nachammai Cotton Mills Limited
  • Ticker: 521234
  • Exchange: BSE
  • Founded: 1980
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹49.536m
  • Shares outstanding: 4.30m
  • Website: https://www.sncmindia.com

Number of Employees


Location

  • Sri Nachammai Cotton Mills Limited
  • Door No. 181, Vasantham
  • 4th Cross Street
  • Salem
  • Tamil Nadu
  • 636016
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
521234BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 2002

Biography

Sri Nachammai Cotton Mills Limited engages in the textiles business in India. It manufactures and sells combed, carded, and compact cotton hosiery and hank yarns that are used by manufacturers to convert into fabrics or garments for dyeing and export. The company was incorporated in 1980 and is based in Salem, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 12:47
End of Day Share Price2020/02/19 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.