Sambandam Spinning Mills

BSE:521240

Snowflake Description

Fair value with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.

521240

BSE

₹414M

Market Cap

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Last updated 2019/04/24 12:40

Company description

Sambandam Spinning Mills Limited manufactures and sells cotton yarns in India. The last earnings update was 280 days ago. More info.

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521240 Share Price and Events

7 Day Returns

-2%

BSE:521240

-0.6%

IN Luxury

-1.9%

IN Market

1 Year Returns

-18.1%

BSE:521240

-4%

IN Luxury

-2.8%

IN Market

521240 Shareholder Return

	7 Day	30 Day	90 Day	1 Year	3 Year	5 Year
Sambandam Spinning Mills (521240)	-2%	2.7%	7.4%	-18.1%	45.6%	55.9%
IN Luxury	-0.6%	1.4%	8.8%	-4%	47.5%	162.4%
IN Market	-1.9%	1.2%	5.1%	-2.8%	38.3%	71%

1 Year Return vs Industry and Market

521240 underperformed the Luxury industry which returned -4% over the past year.
521240 underperformed the Market in India which returned -2.8% over the past year.

Price Volatility

521240

Industry

5yr Volatility vs Market

Related Companies

Value

Is Sambandam Spinning Mills undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.

INTRINSIC VALUE BASED ON FUTURE CASH FLOWS

Here we compare the current share price of Sambandam Spinning Mills to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.

Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Sambandam Spinning Mills.

BSE:521240 Discounted Cash Flow Data Sources
Data Point	Source	Value
Valuation Model		2 Stage Free Cash Flow to Equity
Levered Free Cash Flow	Extrapolated from most recent financials.	See below
Discount Rate (Cost of Equity)	See below	19.2%
Perpetual Growth Rate	10-Year IN Government Bond Rate	7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for BSE:521240
Data Point	Calculation/ Source	Result
Risk-Free Rate	10-Year IN Govt Bond Rate	7.6%
Equity Risk Premium	S&P Global	8.6%
Luxury Unlevered Beta	Simply Wall St/ S&P Global	0.73
Re-levered Beta	= Unlevered beta (1 + (1- tax rate) (Debt/Equity)) = 0.73 (1 + (1- 35%) (169.22%))	1.357
Levered Beta	Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm)	1.36
Discount Rate/ Cost of Equity	= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium) = 7.55% + (1.357 * 8.6%)	19.22%

Discounted Cash Flow Calculation for BSE:521240 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Sambandam Spinning Mills is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

BSE:521240 DCF 1st Stage: Next 10 year cash flow forecast
	Levered FCF (INR, Millions)	Source	Present Value Discounted (@ 19.22%)
2019	89.63	Est @ -28.59%	75.18
2020	73.72	Est @ -17.75%	51.87
2021	66.24	Est @ -10.16%	39.09
2022	63.03	Est @ -4.85%	31.20
2023	62.32	Est @ -1.13%	25.88
2024	63.24	Est @ 1.48%	22.03
2025	65.32	Est @ 3.3%	19.08
2026	68.31	Est @ 4.57%	16.74
2027	72.04	Est @ 5.47%	14.81
2028	76.43	Est @ 6.09%	13.18
Present value of next 10 years cash flows			₹309.06

BSE:521240 DCF 2nd Stage: Terminal Value
	Calculation	Result
Terminal Value	= FCF₂₀₂₈ × (1 + g) ÷ (Discount Rate – g) = ₹76.43 × (1 + 7.55%) ÷ (19.22% – 7.55%)	₹704.54
Present Value of Terminal Value	= Terminal Value ÷ (1 + r)¹⁰ = ₹704.54 ÷ (1 + 19.22%)¹⁰	₹121.48

BSE:521240 Total Equity Value
	Calculation	Result
Total Equity Value	= Present value of next 10 years cash flows + Terminal Value = ₹309.06 + ₹121.48	₹430.53
Equity Value per Share (INR)	= Total value / Shares Outstanding = ₹430.53 / 4.26	₹100.95

BSE:521240 Discount to Share Price
	Calculation	Result
Value per share (INR)	From above.	₹100.95
Current discount	Discount to share price of ₹100.45 = -1 x (₹100.45 - ₹100.95) / ₹100.95	0.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount

Amount off the current price Sambandam Spinning Mills is available for.

Share price is ₹100.45 vs Future cash flow value of ₹100.95

Current Discount Checks

For Sambandam Spinning Mills to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.

Sambandam Spinning Mills's share price is below the future cash flow value, but not at a moderate discount (< 20%).
Sambandam Spinning Mills's share price is below the future cash flow value, but not at a substantial discount (< 40%).

PRICE RELATIVE TO MARKET

We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Sambandam Spinning Mills's earnings, growth and assets is considered below, and whether this is a fair price.

Price based on past earnings

Are Sambandam Spinning Mills's earnings available for a low price, and how does this compare to other companies in the same industry?

Raw Data

BSE:521240 PE (Price to Earnings) Ratio Data Sources
Data Point	Source	Value
Earnings Per Share *	Company Filings (2018-03-31) in INR	₹8.33
BSE:521240 Share Price **	BSE (2019-04-24) in INR	₹100.45
India Luxury Industry PE Ratio	Median Figure of 240 Publicly-Listed Luxury Companies	12.23x
India Market PE Ratio	Median Figure of 2,739 Publicly-Listed Companies	16.02x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Sambandam Spinning Mills.

BSE:521240 PE (Price to Earnings) Ratio Calculation
	Calculation	Outcome
PE Ratio	= BSE:521240 Share Price ÷ EPS (both in INR) = 100.45 ÷ 8.33	12.06x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Sambandam Spinning Mills is good value based on earnings compared to the IN Luxury industry average.
Sambandam Spinning Mills is good value based on earnings compared to the India market.

Price based on expected Growth

Does Sambandam Spinning Mills's expected growth come at a high price?

Raw Data

BSE:521240 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point	Source	Value
PE Ratio	See PE Ratio Section	12.06x
Net Income Annual Growth Rate	See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts	20.3%per year
India Luxury Industry PEG Ratio	Median Figure of 25 Publicly-Listed Luxury Companies	1.48x
India Market PEG Ratio	Median Figure of 586 Publicly-Listed Companies	1.32x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Unable to calculate PEG ratio for Sambandam Spinning Mills, we can't assess if its growth is good value.

Price based on value of assets

What value do investors place on Sambandam Spinning Mills's assets?

Raw Data

BSE:521240 PB (Price to Book) Ratio Data Sources
Data Point	Source	Value
Book Value per Share	Company Filings (2018-03-31) in INR	₹210.04
BSE:521240 Share Price *	BSE (2019-04-24) in INR	₹100.45
India Luxury Industry PB Ratio	Median Figure of 311 Publicly-Listed Luxury Companies	0.75x
India Market PB Ratio	Median Figure of 3,630 Publicly-Listed Companies	1.09x

BSE:521240 PB (Price to Book) Ratio Calculation
	Calculation	Outcome
PB Ratio	= BSE:521240 Share Price ÷ Book Value per Share (both in INR) = 100.45 ÷ 210.04	0.48x

* Primary Listing of Sambandam Spinning Mills.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Sambandam Spinning Mills is good value based on assets compared to the IN Luxury industry average.

Show me more potentially undervalued companies in the Luxury industry

Value checks

We assess Sambandam Spinning Mills's value by looking at:

Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
Is the PE ratio less than the market average, and/ or less than the Luxury industry average (and greater than 0)? (2 checks)
Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
Is the PB ratio less than the Luxury industry average (and greater than 0)? (1 check)

Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

No analysts cover Sambandam Spinning Mills, future earnings growth has been estimated based on fundamentals.

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!

20.3%

Expected annual growth in earnings.

Earnings growth vs Low Risk Savings

Is Sambandam Spinning Mills expected to grow at an attractive rate?

Sambandam Spinning Mills's earnings growth is expected to exceed the low risk savings rate of 7.6%.

Growth vs Market Checks

Sambandam Spinning Mills's earnings growth is expected to exceed the India market average.
Unable to compare Sambandam Spinning Mills's revenue growth to the India market average as no estimate data is available.

Annual Growth Rates Comparison

Raw Data

BSE:521240 Future Growth Rates Data Sources
Data Point	Source	Value (per year)
BSE:521240 Future Earnings Growth Rate	Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts	20.3%
India Luxury Industry Earnings Growth Rate	Market Cap Weighted Average	19.3%
India Luxury Industry Revenue Growth Rate	Market Cap Weighted Average	15%
India Market Earnings Growth Rate	Market Cap Weighted Average	18.3%
India Market Revenue Growth Rate	Market Cap Weighted Average	11.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations

Raw Data

BSE:521240 Analysts Growth Expectations Data Sources
Data Point	Source	Value
Past Financials	Company Filings (1 year ago)	See Below
Future Estimates	Average of up to 0 Analyst Estimates (S&P Global)	See Below

All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.

BSE:521240 Past Financials Data
Date (Data in INR Millions)	Revenue	Cash Flow	Net Income *
2018-03-31	1,931	142	36
2017-03-31	2,091	214	49
2016-03-31	2,054	93	3
2015-12-31	2,108		7
2015-09-30	2,218		-4
2015-06-30	2,248		0

*GAAP earnings excluding extraordinary items.

High Growth Checks

Sambandam Spinning Mills's earnings are expected to grow significantly at over 20% yearly.
Unable to determine if Sambandam Spinning Mills is high growth as no revenue estimate data is available.

Past and Future Earnings per Share

The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.

Raw Data

BSE:521240 Past and Future Earnings per Share
Data Point	Source	Value
Past Financials	Company Filings (1 year ago)	See Below
Future Estimates	Average of up to 0 Analyst Estimates (S&P Global)	See Below

All data from Sambandam Spinning Mills Company Filings, last reported 1 year ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BSE:521240 Past Financials Data
Date (Data in INR Millions)	EPS *
2018-03-31	8.33
2017-03-31	11.44
2016-03-31	0.77
2015-12-31	1.74
2015-09-30	-0.90
2015-06-30	-0.04

*GAAP earnings excluding extraordinary items.

Performance in 3 years

In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.

Unable to establish if Sambandam Spinning Mills will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Show me more growth companies in the Luxury industry

Future performance checks

We assess Sambandam Spinning Mills's future performance by looking at:

Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
Is the annual earnings growth rate expected to be above 20%? (1 check)
Is the annual revenue growth rate expected to be above 20%? (1 check)
Is the Return on Equity in 3 years expected to be over 20%? (1 check)

Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Sambandam Spinning Mills has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

Sambandam Spinning Mills's last earnings update was 280 days ago.

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.

Past earnings growth

Below we compare Sambandam Spinning Mills's growth in the last year to its industry (Luxury).

Past Earnings growth analysis

We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.

Insufficient data to establish if Sambandam Spinning Mills's year on year earnings growth rate was positive over the past 5 years.
Sambandam Spinning Mills's 1-year earnings growth is negative, it can't be compared to the 5-year average.
Sambandam Spinning Mills's 1-year earnings growth is negative, it can't be compared to the IN Luxury industry average.

Earnings and Revenue History

Sambandam Spinning Mills's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.

Raw Data

All data from Sambandam Spinning Mills Company Filings, last reported 1 year ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BSE:521240 Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions)	Revenue	Net Income *	G+A Expenses
2018-03-31	1,930.80	35.53	239.53
2017-03-31	2,091.05	48.80	223.82
2016-03-31	2,054.22	3.27	240.32
2015-12-31	2,107.60	7.38	303.09
2015-09-30	2,217.83	-3.82	305.56
2015-06-30	2,247.89	-0.19	245.88
2015-03-31	2,423.27	34.54	309.98
2014-12-31	2,502.60	42.51	316.21
2014-09-30	2,593.81	76.81	310.94
2014-06-30	2,681.21	106.96	304.29
2014-03-31	2,559.57	93.71	297.73
2013-12-31	2,484.25	84.74	267.84
2013-09-30	2,339.21	84.84	267.20
2013-06-30	2,286.42	100.73	260.60
2013-03-31	2,174.90	91.06	253.58
2012-12-31	2,063.58	82.50	242.68
2012-09-30	1,946.35	40.10	215.02
2012-06-30	1,872.77	-96.21	205.46

*GAAP earnings excluding extraordinary items.

Performance last year

We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.

Sambandam Spinning Mills has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
Sambandam Spinning Mills used its assets less efficiently than the IN Luxury industry average last year based on Return on Assets.
Sambandam Spinning Mills's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).

Past performance checks

We assess Sambandam Spinning Mills's performance over the past 5 years by checking for:

Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the Luxury industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)

The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Sambandam Spinning Mills has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

How is Sambandam Spinning Mills's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Sambandam Spinning Mills's finances.

The net worth of a company is the difference between its assets and liabilities.

Net Worth

Sambandam Spinning Mills's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Sambandam Spinning Mills's cash and other short term assets cover its long term commitments.

Balance sheet

This treemap shows a more detailed breakdown of Sambandam Spinning Mills's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.

Assets

Liabilities and shares

The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.

High level of physical assets or inventory.
Debt is covered by short term assets, assets are 1.3x debt.

Historical Debt

Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.

Raw Data

All data from Sambandam Spinning Mills Company Filings, last reported 1 year ago.

BSE:521240 Past Debt and Equity Data
Date (Data in INR Millions)	Total Equity	Total Debt	Cash & Short Term Investments
2018-03-31	895.74	700.03	11.84
2017-03-31	880.56	773.59	29.13
2016-03-31	761.48	976.43	22.17
2015-12-31	795.79	979.77	77.16
2015-09-30	795.79	979.77	77.16
2015-06-30	778.29	969.25	83.87
2015-03-31	778.29	942.08	83.87
2014-12-31	806.83	1,094.61	62.12
2014-09-30	806.83	1,094.61	62.12
2014-06-30	756.86	1,097.46	30.92
2014-03-31	756.86	1,097.46	30.92
2013-12-31	747.97	1,257.30	127.08
2013-09-30	747.97	1,257.30	127.08
2013-06-30	677.30	1,177.29	63.38
2013-03-31	677.30	1,177.29	63.38
2012-12-31
2012-09-30
2012-06-30	590.51	1,492.80	169.27

Sambandam Spinning Mills's level of debt (78.2%) compared to net worth is high (greater than 40%).
The level of debt compared to net worth has been reduced over the past 5 years (173.8% vs 78.2% today).
Debt is well covered by operating cash flow (20.2%, greater than 20% of total debt).
Interest payments on debt are not well covered by earnings (EBIT is 1.7x annual interest expense, ideally 3x coverage).

Financial health checks

We assess Sambandam Spinning Mills's financial health by checking for:

Are short term assets greater than short term liabilities? (1 check)
Are short term assets greater than long term liabilities? (1 check)
Has the debt to equity ratio increased in the past 5 years? (1 check)
Is the debt to equity ratio over 40%? (1 check)
Is the debt covered by operating cash flow? (1 check)
Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)

For companies that are loss making and have been so on average in the past we replace the last 2 checks with:

Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)

Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.

Annual Dividend Income

1.99%

Current annual income from Sambandam Spinning Mills dividends.

If you bought ₹2,000 of Sambandam Spinning Mills shares you are expected to receive ₹40 in your first year as a dividend.

Dividend Amount

Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?

Sambandam Spinning Mills's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.51%).
Sambandam Spinning Mills's dividend is above the markets top 25% of dividend payers in India (1.95%).

Annualized Historical and Future Dividends

It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.

Raw Data

BSE:521240 Annualized Past and Future Dividends
Data Point	Source	Value
Past Annualized Dividend Yield	S&P Global Market Data	See Below
Past Dividends per Share	Company Filings/ Annualized Dividend Payments	See Below
Future Dividends per Share Estimates	Average of up to 0 Analyst Estimates (S&P Global)	See Below
India Luxury Industry Average Dividend Yield	Market Cap Weighted Average of 110 Stocks	0.6%
India Market Average Dividend Yield	Market Cap Weighted Average of 1400 Stocks	1.4%
India Minimum Threshold Dividend Yield	10th Percentile	0.3%
India Bottom 25% Dividend Yield	25th Percentile	0.5%
India Top 25% Dividend Yield	75th Percentile	2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

BSE:521240 Past Annualized Dividends Data
Date (Data in ₹)	Dividend per share (annual)	Avg. Yield (%)
2018-07-18	2.000	2.017
2017-07-19	4.000	2.934
2016-07-14	2.000	1.837
2015-09-18	2.000	2.901
2015-05-28	2.000	2.675
2014-05-30	2.000	2.588
2013-02-13	0.000	0.000
2012-11-05	0.000	0.000
2012-08-13	0.000	0.000
2012-06-01	0.000	0.000
2012-05-30	0.000	0.000
2011-05-23	4.000	5.538
2011-01-31	4.000	3.837
2010-05-31	0.000	0.000
2010-04-15	0.000	0.000
2010-02-01	0.000	0.000
2009-11-03	0.000	0.000
2009-06-01	0.000	0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Sambandam Spinning Mills has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
Sambandam Spinning Mills has only been paying a dividend for 8 years, and since then dividends per share have fallen.

Current Payout to shareholders

What portion of Sambandam Spinning Mills's earnings are paid to the shareholders as a dividend.

Dividends paid are well covered by earnings (4.2x coverage).

Future Payout to shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.

Income/ dividend checks

We assess Sambandam Spinning Mills's dividend by checking for:

Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
Is current dividend yield above the bottom 25% of dividend payers? (1 check)
Is current dividend yield above the top 25% of dividend payers? (1 check)
Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
If they have paid a dividend for 10 years has it increased in this time? (1 check)
How sustainable is the dividend, can Sambandam Spinning Mills afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)

Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.

CEO

S. Devarajan

COMPENSATION	₹4,800,000
AGE	69
TENURE AS CEO	16.5 years

CEO Bio

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. Devarajan has been the Chairman of the Board of Kandagiri Spinning Mills Limited since June 1, 2017 and has been its Non Executive Director since April 17, 1978. Mr. Devarajan has been a Director of Sambandam Spinning Mills Ltd. since April 1, 2005. He serves as a Director of SPMM Health Care Services Pvt. Ltd.; Sambandam Siva Textiles Pvt. Ltd.; Sambandam Investment & Leasing Limited; Sambandam Fabrics Pvt. Ltd. and Sambandam Textiles Pvt. Ltd.

CEO Compensation

S.'s compensation has been consistent with company performance over the past year.
S.'s remuneration is higher than average for companies of similar size in India.

Management Team Tenure

Average tenure and age of the Sambandam Spinning Mills management team in years:

16.5

Average Tenure

Average Age

The average tenure for the Sambandam Spinning Mills management team is over 5 years, this suggests they are a seasoned and experienced team.

Management Team

S. Devarajan

TITLE

Chairman

COMPENSATION

₹5M

AGE

69

TENURE

16.5 yrs

S. Dinakaran

TITLE

Joint MD & Executive Director

TITLE

Company Secretary & Compliance Officer

J. Sakthivel

TITLE

Chief Technical Officer

Board of Directors Tenure

Average tenure and age of the Sambandam Spinning Mills board of directors in years:

4.9

Average Tenure

64.5

Average Age

The tenure for the Sambandam Spinning Mills board of directors is about average.

Recent Insider Trading

No 3 month insider trading information.

Recent Insider Transactions

Announced	Type	Name	Entity	Start	End	Shares	Max Price (₹)	Value (₹)
30. Oct 18	Buy	S. Devarajan	Individual	23. Aug 18	29. Oct 18	2,547	₹104.25	₹265,523
31. Jul 18	Buy	D. Sudharsan	Individual	28. Jun 18	30. Jul 18	1,900	₹100.06	₹190,120
31. Jul 18	Buy	S. Devarajan	Individual	09. Jul 18	30. Jul 18	1,500	₹97.02	₹145,524
31. Jul 18	Buy	S. Dinakaran	Individual	10. Jul 18	30. Jul 18	1,000	₹96.44	₹96,437
07. Jun 18	Sell	Kandagiri Spinning Mills Limited	Company	05. Apr 18	06. Jun 18	-6,602	₹130.44	₹-861,192

Management checks

We assess Sambandam Spinning Mills's management by checking for:

Is the CEO's compensation unreasonable compared to market cap? (1 check)
Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
Is the average tenure of the management team less than 2 years? (1 check)
Is the average tenure of the board of directors team less than 3 years? (1 check)

Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

April Undervalued Tech Stock Opportunities

Sambandam Spinning Mills and Gitanjali Gems are consumer staple stocks on my list that are potentially undervalued. … Sambandam Spinning Mills Limited (BSE:521240) Sambandam Spinning Mills Limited manufactures and sells cotton yarns in India. … BSE:532715 PE PEG Gauge Apr 14th 18 Rajshree Sugars and Chemicals Limited (BSE:500354) Rajshree Sugars and Chemicals Limited engages in the sugar, distillery, power, and biotechnology businesses in India.