NSEI:SANGAMIND

Stock Analysis Report

Executive Summary

Sangam (India) Limited manufactures and sells PV dyed yarns in India and internationally.


Snowflake Analysis

Adequate balance sheet and fair value.

Share Price & News

How has Sangam (India)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0.9%

SANGAMIND

-0.5%

IN Luxury

-1.5%

IN Market


1 Year Return

-1.4%

SANGAMIND

18.2%

IN Luxury

10.7%

IN Market

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

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


Shareholder returns

SANGAMINDIndustryMarket
7 Day0.9%-0.5%-1.5%
30 Day-11.0%3.0%-2.7%
90 Day13.3%9.2%1.3%
1 Year1.0%-1.4%19.0%18.2%12.7%10.7%
3 Year-78.5%-79.5%52.2%48.8%22.0%15.1%
5 Year-24.2%-28.6%106.9%100.1%34.5%22.0%

Price Volatility Vs. Market

How volatile is Sangam (India)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sangam (India) 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: SANGAMIND (₹53.6) is trading below our estimate of fair value (₹234.03)

Significantly Below Fair Value: SANGAMIND is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SANGAMIND is poor value based on its PE Ratio (20.2x) compared to the Luxury industry average (11.2x).

PE vs Market: SANGAMIND is poor value based on its PE Ratio (20.2x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SANGAMIND 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 Sangam (India) 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 Sangam (India) 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 Sangam (India) performed over the past 5 years?

-27.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SANGAMIND has high quality earnings.

Growing Profit Margin: SANGAMIND's current net profit margins (0.6%) are lower than last year (0.9%).


Past Earnings Growth Analysis

Earnings Trend: SANGAMIND's earnings have declined by -27.1% per year over the past 5 years.

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

Earnings vs Industry: SANGAMIND had negative earnings growth (-38.3%) over the past year, making it difficult to compare to the Luxury industry average (5.6%).


Return on Equity

High ROE: SANGAMIND's Return on Equity (2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sangam (India)'s financial position?


Financial Position Analysis

Short Term Liabilities: SANGAMIND's short term assets (₹8.0B) exceed its short term liabilities (₹6.6B).

Long Term Liabilities: SANGAMIND's short term assets (₹8.0B) exceed its long term liabilities (₹2.9B).


Debt to Equity History and Analysis

Debt Level: SANGAMIND's debt to equity ratio (112.6%) is considered high.

Reducing Debt: SANGAMIND's debt to equity ratio has reduced from 140.3% to 112.6% over the past 5 years.

Debt Coverage: SANGAMIND's debt is well covered by operating cash flow (34.7%).

Interest Coverage: SANGAMIND's interest payments on its debt are not well covered by EBIT (1.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: SANGAMIND's debt is covered by short term assets (assets are 1.4x debt).


Next Steps

Dividend

What is Sangam (India)'s current dividend yield, its reliability and sustainability?

1.86%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SANGAMIND's dividend (1.86%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: SANGAMIND's dividend (1.86%) is low compared to the top 25% of dividend payers in the Indian market (2.58%).


Stability and Growth of Payments

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

Growing Dividend: SANGAMIND's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.5%), SANGAMIND'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?

8.4yrs

Average board tenure


CEO

S. Modani (55yo)

₹15,793,000

Compensation

Mr. S. Niwas Modani, M.Sc., M.B.A., serves as the Managing Director, Chief Executive Officer and Executive Director of Sangam (India) Ltd. Mr. Modani served as a Director of SPBL Limited since February 14, ...


CEO Compensation Analysis

Compensation vs Market: S.'s total compensation ($USD220.70K) is above average for companies of similar size in the Indian market ($USD50.34K).

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


Board Members

NamePositionTenureCompensationOwnership
Ram Soni
Executive Chairman0yrs₹24.70m2.87% 59.4m
S. Modani
CEO, MD & Executive Director0yrs₹15.79m0.25% 5.2m
Vinod Sodani
Executive Director0yrs₹7.98mno data
Achintya Karati
Independent Non Executive Director15.2yrs₹450.00kno data
Tapan Mukhopadhyay
Independent Non-Executive Director8.4yrs₹360.00kno data
Seema Srivastava
Independent Woman Director4.9yrs₹50.00kno data

8.4yrs

Average Tenure

62.5yo

Average Age

Experienced Board: SANGAMIND's board of directors are considered experienced (8.4 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Sangam (India) Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sangam (India) Limited
  • Ticker: SANGAMIND
  • Exchange: NSEI
  • Founded: 1984
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹2.074b
  • Shares outstanding: 39.42m
  • Website: https://www.sangamgroup.com

Number of Employees


Location

  • Sangam (India) Limited
  • B/306-309, Dynasty Business Park
  • Opposite Sangam Cinema, Andheri Kurla Road
  • Mumbai
  • Maharashtra
  • 400059
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
514234BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 1996
SANGAMINDNSEI (National Stock Exchange of India)YesEquity SharesININRJul 1996

Biography

Sangam (India) Limited manufactures and sells PV dyed yarns in India and internationally. Its product portfolio includes PV blended dyed/grey yarns, cotton spun and open ended yarns, indigo rope dyed yarns, texturized yarns, synthetic blended fabrics, cotton knitted fabrics, and Denim fabrics, as well as seamless garments, such as air wear, intimate wear, inner wear, shape wear, leisure wear, active wear, maternity wear, yoga wear, and casual wear garments for men and women. The company also produces steel; solar, thermal, and wind power; and develops real estate properties. It markets its products under the C9 Airwear, Sangam Suitings, Sangam Denims, and Sangam Yarns brands through a network of dealers and retailers, as well as through online. The company also exports its products. Sangam (India) Limited was founded in 1984 and is headquartered in Mumbai, 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 13:06
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.