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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Sangam (India) Ltd

About the Company - Sangam (India) Ltd

Sangam (India) Ltd. is a Public Limited Listed company incorporated on 29/12/1984 and has its registered office in the State of Rajasthan, India. Company’s Corporate Identification Number(CIN) is L17118RJ1984PLC003173 and registration number is 003173. Currently Company is involved in the business activities of Spinning, weaving and finishing of textiles. Company’s Total Operating Revenue is Rs. 2437.76 Cr. and Equity Capital is Rs. 43.42 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Textiles - Spinning - Synthetic BlendedPost Box No. 90, Atun, Chittorgarh Road, Bhilwara Rajasthan 311001secretarial@sangamgroup.com
http://www.sangamgroup.com
Management
NamePosition Held
Mr. R P SoniChairman
Dr. S N ModaniManaging Director & CEO
Mr. V K SodaniExecutive Director
Mr. Anurag SoniDirector & CFO
Mr. Yaduvendra MathurIndependent Director
Mr. Achintya KaratiIndependent Director
Dr. T K MukhopadhyayIndependent Director
Mrs. Jyoti SharmaIndependent Director
Mr. Sudhir MaheshwariIndependent Director

Sangam (India) Ltd. Share Price Update

Share PriceValue
Today₹490.15
Previous Day₹482.85

Basic Stock Data of Sangam (India) Ltd

Market Cap 2,470 Cr.
Current Price 492
High / Low630/210
Stock P/E33.2
Book Value 215
Dividend Yield0.41 %
ROCE15.5 %
ROE18.6 %
Face Value 10.0

Data Source: screener.in

Competitors of Sangam (India) Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Adinath Textiles Ltd 19.6 Cr. 28.931.9/20.532.8 3.770.00 %29.4 %31.2 % 10.0
Aditya Spinners Ltd 44.5 Cr. 26.632.0/17.057.0 29.30.00 %9.17 %10.3 % 10.0
RSWM Ltd 962 Cr. 204243/144 2742.45 %8.16 %8.30 % 10.0
Industry Average342.03 Cr86.529.93102.360.82%15.58%16.6%10

Sangam (India) Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales312440497411639650738713709605685677629
Expenses289398424362565573630620631546614623582
Operating Profit244273497377108937959715446
OPM %8%9%15%12%12%12%15%13%11%10%10%8%7%
Other Income135243-135-0-1-1212
Interest10121412121311141613101416
Depreciation21201919181815182225142222
Profit before tax-6124520474968654019351911
Tax %27%39%26%36%36%10%21%19%24%10%14%33%1%
Net Profit-473413304453533018301311
EPS in Rs-1.081.717.722.976.8810.0712.3112.106.733.906.692.832.35

Sangam (India) Ltd Quarterly Chart

Sangam (India) Ltd Profit & Loss

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,5911,6371,8741,7901,3592,4382,7122,596
Expenses1,4181,5131,7141,6291,2372,1302,4112,365
Operating Profit174125159162122307302230
OPM %11%8%8%9%9%13%11%9%
Other Income23259810-5-9-10
Interest6463676949485453
Depreciation7377818181707983
Profit before tax61102120218416084
Tax %13%-186%37%34%-113%24%18%
Net Profit53291313414013171
EPS in Rs13.437.263.363.370.9732.2328.9815.77
Dividend Payout %15%14%30%30%103%6%7%

Sangam (India) Ltd Profit & Loss Yearly Chart

Sangam (India) Ltd Growth

Compounded Sales Growth
10 Years:%
5 Years:11%
3 Years:15%
TTM:-6%
Compounded Profit Growth
10 Years:%
5 Years:39%
3 Years:122%
TTM:-56%
Stock Price CAGR
10 Years:32%
5 Years:56%
3 Years:93%
1 Year:161%
Return on Equity
10 Years:%
5 Years:11%
3 Years:16%
Last Year:19%

Sangam (India) Ltd Balance Sheet

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital3939393943434550
Reserves453472481488509647815917
Borrowings708787707648590610826933
Other Liabilities228281306266267523474494
Total Liabilities1,4281,5801,5341,4411,4091,8242,1612,395
Fixed Assets655700648616590602725919
CWIP1191210974223197
Investments66660189
Other Assets7578658688098091,1471,2051,270
Total Assets1,4281,5801,5341,4411,4091,8242,1612,395

Sangam (India) Ltd Reserves and Borrowings Chart

Sangam (India) Ltd Cash Flow

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 14795174183133245216
Cash from Investing Activity -131-107-24-39-43-192-354
Cash from Financing Activity -148-151-132-93-41143
Net Cash Flow2-4-113-4126

Sangam (India) Ltd Financial Efficiency Indicators

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days58716859755647
Inventory Days145139120135184143122
Days Payable41585541577854
Cash Conversion Cycle162152134153203122116
Working Capital Days1121201021051528884
ROCE %6%7%7%4%20%16%

Sangam (India) Ltd Financial Efficiency Indicators Chart

Sangam (India) Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters59.15%59.15%59.15%61.45%61.45%61.44%61.44%70.29%70.29%70.29%70.18%70.18%
FIIs0.00%0.00%0.00%0.01%0.82%0.59%0.52%0.48%0.42%0.37%0.34%0.26%
DIIs2.33%2.33%1.22%1.22%0.02%0.01%0.02%0.00%0.00%0.00%0.01%0.33%
Public38.52%38.52%39.64%37.32%37.71%37.95%38.02%29.23%29.29%29.27%29.41%28.89%
Others0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.08%0.07%0.34%
No. of Shareholders7,3407,2787,0517,6457,99011,19211,36710,97411,24810,98111,43710,792

Sangam (India) Ltd Shareholding Pattern Chart

No. of Sangam (India) Ltd Shareholders

This stock is not held by any mutual fund

Sangam (India) Ltd ROCE Trend

Sangam (India) Ltd EPS Trend

Sangam (India) Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)29.4132.231.043.373.36
Diluted EPS (Rs.)27.2632.061.043.373.36
Cash EPS (Rs.)46.6048.5919.5323.9323.78
Book Value[Excl.RevalReserv]/Share (Rs.)196.03164.88127.21133.72132.09
Book Value[Incl.RevalReserv]/Share (Rs.)196.03164.88127.21133.72132.09
Revenue From Operations / Share (Rs.)602.06561.44312.98454.11475.27
PBDIT / Share (Rs.)70.7572.4430.3943.1342.68
PBIT / Share (Rs.)53.1256.2411.8322.5622.25
PBT / Share (Rs.)35.4442.400.455.115.35
Net Profit / Share (Rs.)28.9832.390.963.373.36
NP After MI And SOA / Share (Rs.)28.9832.390.963.373.36
PBDIT Margin (%)11.7512.909.709.498.97
PBIT Margin (%)8.8210.013.784.964.68
PBT Margin (%)5.887.550.141.121.12
Net Profit Margin (%)4.815.760.300.740.70
NP After MI And SOA Margin (%)4.815.760.300.740.70
Return on Networth / Equity (%)14.7819.640.762.512.54
Return on Capital Employeed (%)18.8626.076.3710.8610.29
Return On Assets (%)6.047.710.290.920.86
Long Term Debt / Equity (X)0.380.250.370.450.54
Total Debt / Equity (X)0.931.060.931.141.23
Asset Turnover Ratio (%)1.361.510.941.201.20
Current Ratio (X)1.201.201.321.271.24
Quick Ratio (X)0.620.600.690.670.71
Inventory Turnover Ratio (X)3.613.492.323.333.64
Dividend Payout Ratio (NP) (%)6.823.0993.5829.6629.78
Dividend Payout Ratio (CP) (%)4.242.064.644.174.20
Earning Retention Ratio (%)93.1896.916.4270.3470.22
Cash Earning Retention Ratio (%)95.7697.9495.3695.8395.80
Interest Coverage Ratio (X)5.916.582.672.472.53
Interest Coverage Ratio (Post Tax) (X)3.904.201.091.191.20
Enterprise Value (Cr.)1766.141860.28823.08726.77897.96
EV / Net Operating Revenue (X)0.650.760.600.400.47
EV / EBITDA (X)5.545.916.244.285.34
MarketCap / Net Operating Revenue (X)0.350.460.230.070.13
Retention Ratios (%)93.1796.906.4170.3370.21
Price / BV (X)1.101.570.570.260.49
Price / Net Operating Revenue (X)0.350.460.230.070.13
EarningsYield0.130.120.010.090.05

Sangam (India) Ltd Profitability Ratios (%)

Sangam (India) Ltd Liquidity Ratios

Sangam (India) Ltd Liquidity Ratios (%)

Sangam (India) Ltd Interest Coverage Ratios (X)

Sangam (India) Ltd Valuation Ratios

Fair Value / Intrinsic Value of Sangam (India) Ltd

Fair Value: ₹1333.11

The stock is undervalued by 170.96% compared to the current price ₹492

*Investments are subject to market risks

Strength and Weakness of Sangam (India) Ltd

StrengthWeakness
  1. The company has shown consistent growth in sales (1.38 cr) and profit (67.75 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 33.20 and average Dividend Yield of 6.45%.
  2. The stock has a low average ROCE of 8.57%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 109.00, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 148.86, which may not be favorable.
  5. The company has higher borrowings (726.13) compared to reserves (597.75), which may suggest financial risk.

Should I Buy Adinath Textiles Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Sangam (India) Ltd:
    1. Net Profit Margin: 4.81%
      • 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: 18.86% (Industry Average ROCE: 11.83%)
      • 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. Interest Coverage Ratio (Post Tax): 3.90
      • 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.
    4. Quick Ratio: 0.62
      • 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.
    5. ✗ Stock P/E: 34.4 (Industry average Stock P/E: 17.2)
      • 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.
    6. ✓ Total Debt / Equity: 0.93
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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 Sangam (India) 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