Sambandam Spinning Mills
Market Cap
₹263.8m
Last Updated
2020/02/19 12:49 UTC
Data Sources
Company Financials
Executive Summary
Sambandam Spinning Mills Limited manufactures and sells cotton yarns in India.
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with adequate balance sheet.
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Share Price & News
How has Sambandam Spinning Mills's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 521240 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0%
521240
-0.5%
IN Luxury
-1.5%
IN Market
1 Year Return
-24.7%
521240
18.2%
IN Luxury
10.7%
IN Market
Return vs Industry: 521240 underperformed the Indian Luxury industry which returned 18.2% over the past year.
Return vs Market: 521240 underperformed the Indian Market which returned 10.7% over the past year.
Shareholder returns
| 521240 | Industry | Market | |
|---|---|---|---|
| 7 Day | 0% | -0.5% | -1.5% |
| 30 Day | -8.6% | 3.0% | -2.7% |
| 90 Day | 2.2% | 9.2% | 1.3% |
| 1 Year | -22.6%-24.7% | 19.0%18.2% | 12.7%10.7% |
| 3 Year | -33.5%-38.4% | 52.2%48.8% | 22.0%15.1% |
| 5 Year | 12.3%-1.6% | 106.9%100.1% | 34.5%22.0% |
Price Volatility Vs. Market
How volatile is Sambandam Spinning Mills's share price compared to the market and industry in the last 5 years?
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Is Sambandam 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: 521240 (₹64) is trading below our estimate of fair value (₹230.74)
Significantly Below Fair Value: 521240 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 521240 is good value based on its PE Ratio (7.4x) compared to the Luxury industry average (11.2x).
PE vs Market: 521240 is good value based on its PE Ratio (7.4x) compared to the Indian market (13.1x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate 521240's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: 521240 is good value based on its PB Ratio (0.3x) compared to the IN Luxury industry average (0.5x).
Next Steps
Future Growth
How is Sambandam Spinning 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 Sambandam 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
- Examine whether Sambandam Spinning Mills is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- Sambandam Spinning Mills competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Consumer Durables industry.
Past Performance
How has Sambandam Spinning Mills performed over the past 5 years?
17.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 521240 has high quality earnings.
Growing Profit Margin: 521240's current net profit margins (1.9%) are lower than last year (2.1%).
Past Earnings Growth Analysis
Earnings Trend: 521240's earnings have grown by 17.9% per year over the past 5 years.
Accelerating Growth: 521240's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 521240 had negative earnings growth (-15.6%) over the past year, making it difficult to compare to the Luxury industry average (5.6%).
Return on Equity
High ROE: 521240's Return on Equity (3.9%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Sambandam Spinning Mills's financial position?
Financial Position Analysis
Short Term Liabilities: 521240's short term assets (₹923.7M) exceed its short term liabilities (₹882.4M).
Long Term Liabilities: 521240's short term assets (₹923.7M) exceed its long term liabilities (₹247.1M).
Debt to Equity History and Analysis
Debt Level: 521240's debt to equity ratio (66.3%) is considered high.
Reducing Debt: 521240's debt to equity ratio has reduced from 135.5% to 66.3% over the past 5 years.
Debt Coverage: 521240's debt is well covered by operating cash flow (22.5%).
Interest Coverage: 521240's interest payments on its debt are not well covered by EBIT (1.5x coverage).
Balance Sheet
Inventory Level: 521240 has a high level of physical assets or inventory.
Debt Coverage by Assets: 521240's debt is covered by short term assets (assets are 1.5x debt).
Next Steps
Dividend
What is Sambandam Spinning Mills's current dividend yield, its reliability and sustainability?
3.13%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: 521240's dividend (3.13%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).
High Dividend: 521240's dividend (3.13%) is in the top 25% of dividend payers in the Indian market (2.58%)
Stability and Growth of Payments
Stable Dividend: 521240 has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: 521240 has only been paying a dividend for 9 years, and since then payments have fallen.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (23.3%), 521240's dividend payments are well 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
How experienced are the management team and are they aligned to shareholders interests?
17.3yrs
Average management tenure
CEO
S. Devarajan (70yo)
17.3yrs
Tenure
₹6,600,000
Compensation
Mr. S. Devarajan, B.Sc., has been the Chairman and Managing Director of Sambandam Spinning Mills Ltd. since May 29, 2008 and October 23, 2002 respectively and serves as its Chief Executive Officer. Mr. Dev ...
CEO Compensation Analysis
Compensation vs Market: S.'s total compensation ($USD92.50K) is above average for companies of similar size in the Indian market ($USD50.34K).
Compensation vs Earnings: S.'s compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 17.3yrs | ₹6.60m | 12.23% ₹32.2m | |
| Joint MD & Executive Director | 14.8yrs | ₹3.66m | 9.74% ₹25.7m | |
| Joint MD & Executive Director | 14.8yrs | ₹6.33m | 11.34% ₹29.9m | |
| Chief Technical Officer | 0yrs | no data | 0.35% ₹915.4k | |
| Company Secretary & Compliance Officer | 0yrs | ₹1.20m | no data | |
| Chief Marketing Officer | 0.7yrs | ₹2.25m | 0.14% ₹358.7k | |
| Chief Financial Officer | 0.7yrs | no data | no data |
17.3yrs
Average Tenure
65yo
Average Age
Experienced Management: 521240's management team is seasoned and experienced (17.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 17.3yrs | ₹6.60m | 12.23% ₹32.2m | |
| Joint MD & Executive Director | 14.8yrs | ₹3.66m | 9.74% ₹25.7m | |
| Joint MD & Executive Director | 14.8yrs | ₹6.33m | 11.34% ₹29.9m | |
| Non-Executive Director | 24.7yrs | ₹55.00k | 2.08% ₹5.5m | |
| Independent Director | 6yrs | ₹300.00k | no data | |
| Independent Director | 5.4yrs | ₹300.00k | no data | |
| Independent Director | 2.9yrs | ₹300.00k | no data | |
| Independent Director | 2.8yrs | ₹235.00k | no data | |
| Additional Non-Executive Independent Director | 1.3yrs | ₹25.00k | no data |
6.0yrs
Average Tenure
63yo
Average Age
Experienced Board: 521240's board of directors are considered experienced (6 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
Sambandam Spinning Mills Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Sambandam Spinning Mills Limited
- Ticker: 521240
- Exchange: BSE
- Founded: 1973
- Industry: Textiles
- Sector: Consumer Durables
- Market Cap: ₹263.766m
- Shares outstanding: 4.26m
- Website: https://sambandam.com
Number of Employees
Location
- Sambandam Spinning Mills Limited
- Kamaraj Nagar Colony
- Post Bag No. 1
- Salem
- Tamil Nadu
- 636014
- India
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 521240 | BSE (Mumbai Stock Exchange) | Yes | Equity Shares | IN | INR | Feb 2002 |
Biography
Sambandam Spinning Mills Limited manufactures and sells cotton yarns in India. The company offers cotton autoconed/siro cleared yarns; single/multi ply yarns; carded/combed weaving and knitting yarns; ring doubled wet spliced/TFO yarns; and value added products, including gassed yarns/compact yarns/slub yarns. It also generates and sells wind power. The company also exports its products. Sambandam Spinning Mills Limited was founded in 1973 and is headquartered in Salem, India.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/19 12:49 |
| End of Day Share Price | 2020/02/19 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/03/31 |
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.