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Last Updated on: 17 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 532674 | NSE: BASML

Bannari Amman Spinning Mills Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 15, 2024, 3:50 pm

Market Cap 351 Cr.
Current Price 54.1
High / Low71.8/37.1
Stock P/E
Book Value 62.6
Dividend Yield0.00 %
ROCE1.76 %
ROE3.75 %
Face Value 5.00
PEG Ratio0.00

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Bannari Amman Spinning Mills Ltd

Competitors of Bannari Amman Spinning Mills Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
IGC Industries Ltd 77.3 Cr. 22.324.8/10.3 0.260.00 %1.19 %16.6 % 10.0
Hindoostan Mills Ltd 36.5 Cr. 220411/195 2610.00 %4.73 %5.74 % 10.0
Gokak Textiles Ltd 117 Cr. 180276/88.4 44.50.00 %1.31 %% 10.0
Globus Power Generation Ltd 174 Cr. 17.643.0/13.8 0.480.00 %25.8 %25.8 % 10.0
Gaekwar Mills Ltd 2.63 Cr. 13.113.1/12.5 3620.00 %66.6 %% 10.0
Industry Average1,780.36 Cr249.8335.1993.280.06%12.12%34.68%8.35

All Competitor Stocks of Bannari Amman Spinning Mills Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales252.73394.70449.04463.76383.02345.95289.46328.46194.19379.42197.84248.25215.86
Expenses211.32340.79398.99442.43351.34335.51284.23324.68180.24360.50181.52257.37212.53
Operating Profit41.4153.9150.0521.3331.6810.445.233.7813.9518.9216.32-9.123.33
OPM %16.39%13.66%11.15%4.60%8.27%3.02%1.81%1.15%7.18%4.99%8.25%-3.67%1.54%
Other Income0.091.762.651.550.490.471.950.751.484.012.2815.6612.44
Interest13.1216.2111.9812.0113.6215.4914.5910.5312.7414.3012.4612.5211.72
Depreciation7.967.798.029.938.238.278.498.157.709.287.027.436.44
Profit before tax20.4231.6732.700.9410.32-12.85-15.90-14.15-5.01-0.65-0.88-13.41-2.39
Tax %25.12%34.10%35.57%208.51%25.29%-29.26%-30.19%-28.20%-36.33%-81.54%-92.05%-19.76%-230.54%
Net Profit15.2920.8721.07-1.037.70-9.09-11.10-10.17-3.20-0.12-0.07-10.763.12
EPS in Rs2.222.903.03-0.050.91-1.82-2.07-1.59-0.74-0.36-0.31-1.980.48

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales5596997308228681,0081,1741,1341,0191,5601,3989241,041
Expenses4455816477267839111,0571,0389401,3931,3468941,012
Operating Profit113118839685971179678167533029
OPM %20%17%11%12%10%10%10%8%8%11%4%3%3%
Other Income1131369184662734
Interest38383838446067726253584951
Depreciation36352830303134333334353030
Profit before tax4146202915112510-1286-33-22-17
Tax %33%31%33%33%22%15%6%41%-14%34%-32%-35%
Net Profit273213201210246-1056-23-14-8
EPS in Rs4.234.892.053.021.781.363.240.37-1.708.09-4.56-3.39-2.17
Dividend Payout %12%10%18%13%25%29%12%0%0%7%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)18.52%-59.38%53.85%-40.00%-16.67%140.00%-75.00%-266.67%660.00%-141.07%39.13%
Change in YoY Net Profit Growth (%)0.00%-77.89%113.22%-93.85%23.33%156.67%-215.00%-191.67%926.67%-801.07%180.20%

Bannari Amman Spinning Mills Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:3%
5 Years:-5%
3 Years:-3%
TTM:-18%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:-3%
TTM:47%
Stock Price CAGR
10 Years:0%
5 Years:6%
3 Years:-6%
1 Year:5%
Return on Equity
10 Years:2%
5 Years:0%
3 Years:1%
Last Year:-4%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:37 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital16161616161616161632323232
Reserves199227228244269279297297286420388367373
Borrowings382448462499555702725680584520621507467
Other Liabilities96120146189101211222255229263243322138
Total Liabilities6948108529479411,2081,2591,2471,1141,2351,2841,2281,011
Fixed Assets442440452514574669659640613599638482484
CWIP725020311417306104
Investments2324542111002744
Other Assets222344344409345537598603484604633732520
Total Assets6948108529479411,2081,2591,2471,1141,2351,2841,2281,011

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +103411359262267139160561125
Cash from Investing Activity +-23-29-75-60-67-42-267-12-34-48-9
Cash from Financing Activity +-7124-44-35319-48-123-165-2138-113
Net Cash Flow9-1-6-412-1-624-171-93

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-269.00-330.00-379.00-403.00-470.00-605.00-608.00-584.00-506.00-353.00-568.00-477.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days293540433645595450445266
Inventory Days98148117136114173150157138108122110
Days Payable363145592262537169514152
Cash Conversion Cycle92152112120128156156140120101134125
Working Capital Days31836568771211141021099211779
ROCE %13%8%9%7%8%9%6%5%14%2%2%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters55.33%55.33%55.33%55.33%55.33%55.33%55.33%55.33%55.33%55.33%55.33%55.33%
FIIs0.33%0.25%0.37%0.32%0.12%0.08%0.08%0.15%0.07%0.05%0.01%0.01%
Public44.33%44.41%44.29%44.34%44.54%44.59%44.58%44.51%44.59%44.61%44.66%44.65%
No. of Shareholders14,08516,57517,18217,71517,82717,54317,79817,48318,24920,87220,76024,056

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue5.005.005.005.0010.00
Basic EPS (Rs.)-1.12-3.4911.85-3.493.75
Diluted EPS (Rs.)-1.12-3.4911.85-3.493.75
Cash EPS (Rs.)2.431.8913.867.1024.46
Book Value[Excl.RevalReserv]/Share (Rs.)69.6172.0775.87107.13220.38
Book Value[Incl.RevalReserv]/Share (Rs.)69.6172.0775.87107.13220.38
Revenue From Operations / Share (Rs.)142.43215.69240.62323.26719.73
PBDIT / Share (Rs.)7.599.1026.6426.2572.80
PBIT / Share (Rs.)2.983.7221.4515.8652.09
PBT / Share (Rs.)-4.59-5.1613.22-3.826.37
Net Profit / Share (Rs.)-2.18-3.498.67-3.293.75
NP After MI And SOA / Share (Rs.)-3.39-4.568.09-3.491.54
PBDIT Margin (%)5.324.2111.078.1210.11
PBIT Margin (%)2.091.728.914.907.23
PBT Margin (%)-3.22-2.395.49-1.180.88
Net Profit Margin (%)-1.53-1.613.60-1.010.52
NP After MI And SOA Margin (%)-2.37-2.113.36-1.080.21
Return on Networth / Equity (%)-5.50-7.0311.58-3.640.77
Return on Capital Employeed (%)2.812.9517.308.8213.90
Return On Assets (%)-1.78-2.304.19-0.980.19
Long Term Debt / Equity (X)0.540.730.560.610.62
Total Debt / Equity (X)1.271.471.151.741.97
Asset Turnover Ratio (%)0.731.101.190.780.78
Current Ratio (X)1.331.321.330.860.89
Quick Ratio (X)0.930.580.640.390.39
Inventory Turnover Ratio (X)2.413.323.722.122.32
Dividend Payout Ratio (NP) (%)0.00-13.140.000.00103.95
Dividend Payout Ratio (CP) (%)0.0073.540.000.007.19
Earning Retention Ratio (%)0.00113.140.000.00-3.95
Cash Earning Retention Ratio (%)0.0026.460.000.0092.81
Interest Coverage Ratio (X)1.001.023.241.331.59
Interest Coverage Ratio (Post Tax) (X)0.540.602.050.831.08
Enterprise Value (Cr.)796.28897.001042.08734.39721.55
EV / Net Operating Revenue (X)0.860.640.660.720.63
EV / EBITDA (X)16.1815.216.038.886.29
MarketCap / Net Operating Revenue (X)0.260.170.320.180.09
Retention Ratios (%)0.00113.140.000.00-3.95
Price / BV (X)0.610.571.110.630.34
Price / Net Operating Revenue (X)0.260.170.320.180.09
EarningsYield-0.08-0.120.10-0.050.02

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Bannari Amman Spinning Mills Ltd as of November 17, 2024 is: 35.92

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 17, 2024, Bannari Amman Spinning Mills Ltd is Overvalued by 33.60% compared to the current share price 54.10

Default values used*: Default value of 15 for Stock P/E is used

Intrinsic Value of Bannari Amman Spinning Mills Ltd as of November 17, 2024 is: 33.26

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 17, 2024, Bannari Amman Spinning Mills Ltd is Overvalued by 38.52% compared to the current share price 54.10

Default values used*: Default value of 15 for Stock P/E is used

Last 5 Year EPS CAGR: -7.42%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (354.54 cr) and profit (15.31 cr) over the years.
  1. The stock has a low average ROCE of 6.92%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 88.17, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 128.00, which may not be favorable.
  4. The company has higher borrowings (550.15) compared to reserves (298.00), which may suggest financial risk.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Bannari Amman Spinning Mills Ltd:
    1. Net Profit Margin: -1.53%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 2.81% (Industry Average ROCE: 11.65%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: -5.5% (Industry Average ROE: 29.35%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 0.54
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.93
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 0 (Industry average Stock P/E: 12.18)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 1.27
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Bannari Amman Spinning Mills Ltd. is a Public Limited Listed company incorporated on 10/07/1989 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L17111TZ1989PLC002476 and registration number is 002476. Currently company belongs to the Industry of Textiles - General. Company’s Total Operating Revenue is Rs. 1285.43 Cr. and Equity Capital is Rs. 32.42 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Textiles - General252, Mettupalayam Road, Coimbatore Tamil Nadu 641043shares@bannarimills.com
http://www.bannarimills.com
Management
NamePosition Held
Mr. S V ArumugamChairman & Managing Director
Dr. K R ThillainathanDirector
Mr. S PalaniswamiDirector
Mr. K SadhasivamDirector
Mrs. S SihamaniDirector
Mr. C SivasamyDirector
Mr. K P RamakrishnanDirector
Ms. Priya BhansaliDirector

FAQ

What is the latest intrinsic value of Bannari Amman Spinning Mills Ltd?

The latest intrinsic value of Bannari Amman Spinning Mills Ltd as on 17 November 2024 is ₹35.92, which is 33.60% lower than the current market price of ₹54.10.

What is the Market Cap of Bannari Amman Spinning Mills Ltd?

The Market Cap of Bannari Amman Spinning Mills Ltd is 351 Cr..

What is the current Stock Price of Bannari Amman Spinning Mills Ltd as on 17 November 2024?

The current stock price of Bannari Amman Spinning Mills Ltd as on 17 November 2024 is ₹54.1.

What is the High / Low of Bannari Amman Spinning Mills Ltd stocks in FY 2024?

In FY 2024, the High / Low of Bannari Amman Spinning Mills Ltd stocks is 71.8/37.1.

What is the Stock P/E of Bannari Amman Spinning Mills Ltd?

The Stock P/E of Bannari Amman Spinning Mills Ltd is .

What is the Book Value of Bannari Amman Spinning Mills Ltd?

The Book Value of Bannari Amman Spinning Mills Ltd is 62.6.

What is the Dividend Yield of Bannari Amman Spinning Mills Ltd?

The Dividend Yield of Bannari Amman Spinning Mills Ltd is 0.00 %.

What is the ROCE of Bannari Amman Spinning Mills Ltd?

The ROCE of Bannari Amman Spinning Mills Ltd is 1.76 %.

What is the ROE of Bannari Amman Spinning Mills Ltd?

The ROE of Bannari Amman Spinning Mills Ltd is 3.75 %.

What is the Face Value of Bannari Amman Spinning Mills Ltd?

The Face Value of Bannari Amman Spinning Mills Ltd is 5.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Bannari Amman Spinning Mills Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE