NSEI:BASML

Stock Analysis Report

Bannari Amman Spinning Mills

Executive Summary

Bannari Amman Spinning Mills Ltd engages in textile business in India.

Rewards

PE ratio (11.8x) is below the Indian market (12.7x)

Risk Analysis

Interest payments are not well covered by earnings

Unstable dividend track record

Highly volatile share price over past 3 months

Does not have a meaningful market cap (₹2B)



Snowflake Analysis

Second-rate dividend payer and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.7%

BASML

-0.4%

IN Luxury

-1.1%

IN Market


1 Year Return

-45.9%

BASML

6.1%

IN Luxury

2.9%

IN Market

Return vs Industry: BASML underperformed the Indian Luxury industry which returned 6.1% over the past year.

Return vs Market: BASML underperformed the Indian Market which returned 2.9% over the past year.


Shareholder returns

BASMLIndustryMarket
7 Day-3.7%-0.4%-1.1%
30 Day-17.2%0.1%-0.8%
90 Day-9.9%5.7%6.0%
1 Year-45.2%-45.9%6.8%6.1%4.9%2.9%
3 Year-57.8%-58.9%61.0%59.1%32.7%25.7%
5 Year-29.5%-32.2%103.5%99.9%41.2%28.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Bannari Amman Spinning Mills undervalued compared to its fair value and its price relative to the market?

11.81x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BASML (₹113.3) is trading above our estimate of fair value (₹15.73)

Significantly Below Fair Value: BASML is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BASML is poor value based on its PE Ratio (11.8x) compared to the Luxury industry average (10.3x).

PE vs Market: BASML is good value based on its PE Ratio (11.8x) compared to the Indian market (12.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: BASML is good value based on its PB Ratio (0.4x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

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

20.7%

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 Bannari Amman 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 Bannari Amman Spinning Mills performed over the past 5 years?

1.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BASML has high quality earnings.

Growing Profit Margin: BASML's current net profit margins (1.3%) are lower than last year (1.4%).


Past Earnings Growth Analysis

Earnings Trend: BASML's earnings have grown by 1.5% per year over the past 5 years.

Accelerating Growth: BASML's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BASML had negative earnings growth (-3.3%) over the past year, making it difficult to compare to the Luxury industry average (1%).


Return on Equity

High ROE: BASML's Return on Equity (4.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Bannari Amman Spinning Mills's financial position?


Financial Position Analysis

Short Term Liabilities: BASML's short term assets (₹6.1B) do not cover its short term liabilities (₹6.9B).

Long Term Liabilities: BASML's short term assets (₹6.1B) exceed its long term liabilities (₹2.4B).


Debt to Equity History and Analysis

Debt Level: BASML's debt to equity ratio (203.1%) is considered high.

Reducing Debt: BASML's debt to equity ratio has increased from 163.6% to 203.1% over the past 5 years.

Debt Coverage: BASML's debt is not well covered by operating cash flow (3.6%).

Interest Coverage: BASML's interest payments on its debt are not well covered by EBIT (1.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: BASML's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

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

1.42%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%0.6%markettop25%2.5%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: BASML's dividend (1.42%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: BASML's dividend (1.42%) is low compared to the top 25% of dividend payers in the Indian market (2.55%).


Stability and Growth of Payments

Stable Dividend: BASML's dividend payments have been volatile in the past 10 years.

Growing Dividend: BASML's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16.8%), BASML'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

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

5.0yrs

Average management tenure


CEO

A. Senthil (43yo)

8.6yrs

Tenure

0

Mr. A. Senthil, B.Com, M.B.A. has been the Chief Executive Officer of Bannari Amman Spinning Mills Limited since May 2011. Mr. Senthil serves as a Director of Anamallais Agencies Private Limited; Murugan E ...


Management Age and Tenure

5.0yrs

Average Tenure

49yo

Average Age

Experienced Management: BASML's management team is seasoned and experienced (5 years average tenure).


Board Age and Tenure

11.6yrs

Average Tenure

71yo

Average Age

Experienced Board: BASML's board of directors are seasoned and experienced ( 11.6 years average tenure).


Insider Trading

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.


Management Team

  • Sangampalayam Arumugam (70yo)

    Chairman & MD

    • Tenure: 0yrs
  • Nachimuthugounder Krishnaraj (55yo)

    Compliance Officer & Company Secretary

    • Tenure: 12.3yrs
  • A. Senthil (43yo)

    Chief Executive Officer

    • Tenure: 8.6yrs
  • S. Seshadri (59yo)

    Chief Financial Officer

    • Tenure: 1.5yrs
  • Anand Kumar Dubey (46yo)

    Business Head

    • Tenure: 0yrs
  • S. Swaminathan (50yo)

    Head of Administration

    • Tenure: 0yrs
  • K. Mugunth (42yo)

    Head of Marketing

    • Tenure: 0yrs
  • K. Prabakaran (48yo)

    Vice President of Operations

    • Tenure: 1.2yrs

Board Members

  • Kodumudi Narayanaswami Ramani (88yo)

    Non-Executive Independent Director

    • Tenure: 14.4yrs
    • Compensation: ₹80.00k
  • Sangampalayam Arumugam (70yo)

    Chairman & MD

    • Tenure: 0yrs
  • Kugalur Thillainathan (65yo)

    Non-Executive Independent Director

    • Tenure: 11.6yrs
    • Compensation: ₹45.00k
  • Kulandaisamy Sadhasivam (72yo)

    Non-Executive Independent Director

    • Tenure: 13.3yrs
    • Compensation: ₹35.00k
  • Sennimalai Palaniswami (75yo)

    Non-Executive Independent Director

    • Tenure: 11.6yrs
    • Compensation: ₹40.00k
  • Shanmugavelayutham Sihamani (66yo)

    Non-Executive Independent Director

    • Tenure: 5.3yrs
    • Compensation: ₹25.00k

Company Information

Bannari Amman Spinning Mills Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bannari Amman Spinning Mills Ltd
  • Ticker: BASML
  • Exchange: NSEI
  • Founded: 1989
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹1.797b
  • Shares outstanding: 15.75m
  • Website: https://www.bannarimills.com

Number of Employees


Location

  • Bannari Amman Spinning Mills Ltd
  • 252, Mettupalayam Road
  • Coimbatore
  • Tamil Nadu
  • 641043
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532674BSE (Mumbai Stock Exchange)YesEquity SharesININRNov 2005
BASMLNSEI (National Stock Exchange of India)YesEquity SharesININRNov 2005

Biography

Bannari Amman Spinning Mills Ltd engages in textile business in India. It manufactures and markets cotton yarns; woven and knitted fabrics; home textiles; and knitted garments, as well as processes fabrics ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/12 12:49
End of Day Share Price2019/12/12 00:00
Earnings2019/09/30
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.