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Sambandam Spinning Mills

BSE:521240
Snowflake Description

Undervalued with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
521240
BSE
₹354M
Market Cap
  1. Home
  2. IN
  3. Consumer Durables
Company description

Sambandam Spinning Mills Limited manufactures and sells cotton yarns in India. The last earnings update was 212 days ago. More info.


Add to Portfolio Compare Print
  • Sambandam Spinning Mills has significant price volatility in the past 3 months.
521240 Share Price and Events
7 Day Returns
-9.3%
BSE:521240
-1.3%
IN Luxury
-3.1%
IN Market
1 Year Returns
-42.2%
BSE:521240
-8.5%
IN Luxury
-9.2%
IN Market
521240 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Sambandam Spinning Mills (521240) -9.3% -17% -33.5% -42.2% 47% 18.9%
IN Luxury -1.3% -0.8% -1.2% -8.5% 51.9% 196.8%
IN Market -3.1% -3.8% -2.9% -9.2% 43.1% 83.1%
1 Year Return vs Industry and Market
  • 521240 underperformed the Luxury industry which returned -8.5% over the past year.
  • 521240 underperformed the Market in India which returned -9.2% over the past year.
Price Volatility
521240
Industry
5yr Volatility vs Market

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 17.3%
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 7.5%
Luxury Unlevered Beta Simply Wall St/ S&P Global 0.58
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.575 (1 + (1- 35%) (197.77%))
1.315
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.31
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (1.315 * 7.45%)
17.34%

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 use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

BSE:521240 DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (INR, Millions) 82.90 79.37 75.99 72.75 69.65
Source Est @ -4.26% Est @ -4.26% Est @ -4.26% Est @ -4.26% Est @ -4.26%
Present Value
Discounted (@ 17.34%)
70.65 57.64 47.03 38.37 31.30
Present value of next 5 years cash flows ₹244.99
BSE:521240 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= ₹69.65 × (1 + 7.55%) ÷ (17.34% – 7.55%)
₹764.81
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= ₹764.81 ÷ (1 + 17.34%)5
₹343.76
BSE:521240 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= ₹244.99 + ₹343.76
₹588.75
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹588.75 / 4.26
₹138.05
BSE:521240 Discount to Share Price
Calculation Result
Value per share (INR) From above. ₹138.05
Current discount Discount to share price of ₹82.55
= -1 x (₹82.55 - ₹138.05) / ₹138.05
40.2%

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.
Intrinsic value
40%
Share price is ₹82.55 vs Future cash flow value of ₹138.05
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, and at a moderate discount (> 20%).
  • Sambandam Spinning Mills's share price is below the future cash flow value, and 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 (2019-02-15) in INR ₹82.55
India Luxury Industry PE Ratio Median Figure of 237 Publicly-Listed Luxury Companies 11.67x
India Market PE Ratio Median Figure of 2,734 Publicly-Listed Companies 15.39x

* 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)

= 82.55 ÷ 8.33

9.91x

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 9.91x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
19.8%per year
India Luxury Industry PEG Ratio Median Figure of 28 Publicly-Listed Luxury Companies 1.11x
India Market PEG Ratio Median Figure of 608 Publicly-Listed Companies 1.1x

*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 (2019-02-15) in INR ₹82.55
India Luxury Industry PB Ratio Median Figure of 307 Publicly-Listed Luxury Companies 0.71x
India Market PB Ratio Median Figure of 3,588 Publicly-Listed Companies 1.06x
BSE:521240 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:521240 Share Price ÷ Book Value per Share (both in INR)

= 82.55 ÷ 210.04

0.39x

* 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.
X
Value checks
We assess Sambandam Spinning Mills's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Luxury industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Luxury industry average (and greater than 0)? (1 check)
  5. Sambandam Spinning Mills has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    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!
Annual Growth Rate
19.8%
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 19.8%
India Luxury Industry Earnings Growth Rate Market Cap Weighted Average 18.3%
India Luxury Industry Revenue Growth Rate Market Cap Weighted Average 15%
India Market Earnings Growth Rate Market Cap Weighted Average 18.4%
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 (10 months 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.

Super high growth metrics
High Growth Checks
  • Sambandam Spinning Mills's earnings are expected to grow by 19.8% yearly, however this is not considered high growth (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 (10 months 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 10 months 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.
X
Future performance checks
We assess Sambandam Spinning Mills's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. 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 2/6, 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 212 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.
  • Sambandam Spinning Mills's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • 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 10 months 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 R&D 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
2012-03-31 1,867.92 -144.38 201.65

*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).
X
Past performance checks
We assess Sambandam Spinning Mills's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Luxury industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. 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 10 months 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
2012-03-31 590.51 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).
X
Financial health checks
We assess Sambandam Spinning Mills's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Sambandam Spinning Mills has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
2.42%
Current annual income from Sambandam Spinning Mills dividends.
If you bought ₹2,000 of Sambandam Spinning Mills shares you are expected to receive ₹48 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 (0.55%).
  • Sambandam Spinning Mills's dividend is above the markets top 25% of dividend payers in India (2.07%).
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 109 Stocks 0.6%
India Market Average Dividend Yield Market Cap Weighted Average of 1397 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.6%
India Top 25% Dividend Yield 75th Percentile 2.1%

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 1.983
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
2009-02-16 2.500 8.029

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

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
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.
X
Income/ dividend checks
We assess Sambandam Spinning Mills's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. Sambandam Spinning Mills has a total score of 3/6, see the detailed checks below.


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 16.3 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:

16.3
Average Tenure
67
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
16.3 yrs

S. Dinakaran

TITLE
Joint MD & Executive Director
COMPENSATION
₹2M
AGE
61
TENURE
16.3 yrs

S. Jegarajan

TITLE
Joint MD & Executive Director
COMPENSATION
₹5M
AGE
67
TENURE
16.3 yrs

D. Kumar

TITLE
Chief Financial Officer
COMPENSATION
₹2M

S. Natarajan

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:

4.7
Average Tenure
64.5
Average Age
  • The tenure for the Sambandam Spinning Mills board of directors is about average.
Board of Directors

S. Devarajan

TITLE
Chairman
COMPENSATION
₹5M
AGE
69
TENURE
10.8 yrs

S. Dinakaran

TITLE
Joint MD & Executive Director
COMPENSATION
₹2M
AGE
61
TENURE
13.8 yrs

S. Jegarajan

TITLE
Joint MD & Executive Director
COMPENSATION
₹5M
AGE
67
TENURE
13.8 yrs

S. Gnanasekharan

TITLE
Independent Director
COMPENSATION
₹305K
AGE
80
TENURE
5 yrs

Kameshwar Bhat

TITLE
Independent Director
COMPENSATION
₹320K
TENURE
4.4 yrs

D. Sudharsan

TITLE
Non-Executive Director
COMPENSATION
₹105K
AGE
43
TENURE
8.9 yrs

V. Sekar

TITLE
Independent Director
COMPENSATION
₹305K
AGE
62
TENURE
1.9 yrs

R. Ramarathnam

TITLE
Independent Director
COMPENSATION
₹280K
AGE
72
TENURE
1.8 yrs

D. Balasundaram

TITLE
Independent Director
COMPENSATION
₹305K
AGE
60
TENURE
1.8 yrs

Annapoorani Venugopalan

TITLE
Additional Non-Executive Director
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role 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
X
Management checks
We assess Sambandam Spinning Mills's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Sambandam Spinning Mills has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


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.

Simply Wall St -

Top BSE Undervalued Stock

Stocks recently deemed undervalued include Sambandam Spinning Mills and Shetron, as they trade at a market price below their true valuations. … Furthermore, 521240’s PE ratio is currently around 6.2x while its Luxury peer level trades at, 17.69x suggesting that relative to its comparable company group, 521240’s stock can be bought at a cheaper price. … Also, 523724’s PE ratio is currently around 9.7x while its Real Estate peer level trades at, 25.75x implying that relative to its competitors, we can purchase 523724’s shares for cheaper.

Simply Wall St -

Top Undervalued Cyclical Stocks This Week

In terms of relative valuation, 521240’s PE ratio is trading at 5.78x relative to its Luxury peer level of, 17.47x meaning that relative to its competitors, you can buy 521240’s shares at a cheaper price. … In terms of relative valuation, 532715’s PE ratio is around 0.52x compared to its Luxury peer level of, 17.47x suggesting that relative to other stocks in the industry, we can purchase 532715’s shares for cheaper. … In terms of relative valuation, 526729’s PE ratio stands at 5.48x compared to its Luxury peer level of, 17.47x indicating that relative to its comparable set of companies, we can invest in 526729 at a lower price.

Simply Wall St -

March Top Cyclical Dividend Payers

BSE:521240 Historical Dividend Yield Mar 28th 18 BSL Limited (BSE:514045) 514045 has a solid dividend yield of 2.27% and distributes 46.40% of its earnings to shareholders as dividends. … BSE:514045 Historical Dividend Yield Mar 28th 18 The Indian Card Clothing Company Limited (NSEI:INDIANCARD) INDIANCARD has a enticing dividend yield of 8.31% and has a payout ratio of 13.33%. … NSEI:INDIANCARD Historical Dividend Yield Mar 28th 18 For more solid dividend paying companies to add to your portfolio, explore this interactive list of top dividend payers.

Simply Wall St -

Best Discounted Cylical Stocks in March

Consumer staple stocks recently deemed undervalued include Sambandam Spinning Mills and Rajshree Sugars and Chemicals, as they trade at a market price below their true valuations. … BSE:521240 PE PEG Gauge Mar 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. … Rajshree Sugars and Chemicals was founded in 1985 and with the stock's market cap sitting at INR ₹860.52M, it comes under the small-cap stocks category.

Simply Wall St -

Company Info

Map
Description

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, such as 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.

Details
Name: Sambandam Spinning Mills Limited
521240
Exchange: BSE
Founded: 1973
₹353,961,800
4,264,600
Website: http://www.sambandam.com
Address: Sambandam Spinning Mills Limited
Kamaraj Nagar Colony,
Post Bag No. 1,
Salem,
Tamil Nadu, 636014,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 521240 Equity Shares Mumbai Stock Exchange IN INR 05. Feb 2002
Number of employees
Current staff
Staff numbers
896
Sambandam Spinning Mills employees.
Industry
Textiles
Consumer Durables
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/02/15 12:43
End of day share price update: 2019/02/15 00:00
Last earnings filing: 2018/07/18
Last earnings reported: 2018/03/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.