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Sambandam Spinning Mills
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Sambandam Spinning Mills Ltd (SSML) was incorporated in 1973. The Company is into the business of manufacture of Yarn (cotton, synthetic, etc.) and Fabric. It has 4 manufacturing locations around Salem, 12.35 MW Wind Energy Converters located in Tirunelvelli District, Tamil Nadu State and 9MW of solar energy plants which produce electricity for its own consumption and for sale. The Company manufactures yarn at its three spinning mills in Tamil Nadu, of which two are in Salem district and one in Coimbatore district. It allotted bonus shares in the ratio of 1:2 in May '94. Subsequently, in Aug.'94, it offered rights at a premium of Rs 40 per share.
Presently, the total installed spinning capacity of the mill is 47,356. SSL went public in Jan.'95 at a premium of Rs 40 to part-finance its expansion programme to have an installed capacity of 50,460 spindles. This is likely to be completed in Mar.'97. The company started a windmill project from Sep.'95, to generate 225 kW power, at Poolavadi in Coimbatore district.
In 1995-96, SSL earned foreign exchange worth Rs 33 lac.
During 1996-97, due to uptrend in the price of Yarn and Cotton, the company is not in a position to hazard any favourable change in the profitability of the company. In 1996-97, SSL earned foreign exchange worth Rs. 98 Lacs.
In May 1998, the company was awarded the ISO 9002 Qality Accreditation certificate by SGS, a testimony for quality work processes.
During the year 1999-2000, the Company availed term loans from financial institutions towards working capital to an extent of Rs. 1070 lakhs and repaid term loans to an extent of Rs. 316 lakhs. The Company also incurred capital expenditure of Rs. 187 lakhs during the year.
The Company energized two Wind energy converters (WEGs) at a cost of Rs.1238 Lakhs in Tirunelveli District during the year 2005-06. It energized three Wind Energy Converters (WECs) costing Rs.18.60 crores in Uthumalai Village, Tirunelveli District, Tamil Nadu during the year 2006-07. The Company's modernisation and expansion programme implemented costing Rs.40 crores during the year 2006-07 resulting in addition of 13392 spindles started functioning during the year. Company's expansion project involving installation of 10,800 spindles was commissioned in July 2008.
During the year 2010, 3600 Spindles were added to the capacity in third unit, thereby increasing the total installed capacity to 89,052 spindles from 85,452 Spindles.
During the year 2020-21, the Company started operating its Unit IV (with 27,000 spindles) from June 2021 consisting of spinning plant and machinery which was purchased from Kandhagiri Spinning Mills Ltd (KSML )during the month march FY 19-20 and thereby the expanded capacity was put to use fully, and functioning as Unit IV of SSML
Sambandam Spinning Mills share price reflects investor sentiment toward the company and is impacted by various factors such as financial performance, market trends, and economic conditions. Share price is an indicator which shows the current value of the company's shares at which buyers or sellers can transact.
Market capitalization of Sambandam Spinning Mills indicates the total value of its outstanding shares. Marketcap is calculated by multiplying share price and outstanding shares of the company. It is a helpful metric for assessing the company's size and market Valuation. It also helps investors understand how Sambandam Spinning Mills is valued compared to its competitors.
Sambandam Spinning Mills PE ratio helps investors understand what is the market value of each stock compared to Sambandam Spinning Mills 's earnings. A PE ratio higher than the average industry PE could indicate an overvaluation of the stock, whereas a lower PE compared to the average industry PE could indicate an undervaluation.
The PEG ratio of Sambandam Spinning Mills evaluates its PE ratio in relation to its growth rate. A PEG ratio of 1 indicates a fair value, a PEG ratio of less than 1 indicates undervaluation, and a PEG ratio of more than 1 indicates overvaluation.
Return on Equity (ROE) measures how effectively Sambandam Spinning Mills generates profit from shareholders' equity. A higher ROE of more than 20% indicates better financial performance in terms of profitability.
Return on Capital Employed (ROCE) evaluates the profitability of Sambandam Spinning Mills in relation to its capital employed. In simple terms, ROCE provides insight to investors as to how well the company is utilizing the capital deployed. A high ROCE of more than 20% shows that the business is making profitable use of its capital.
Total debt of Sambandam Spinning Mills shows how much the company owes to either banks or individual creditors. In simple terms, this is the amount the company has to repay. Total debt can be a very useful metric to show the financial health of the company. Total debt more than equity is considered to be a bad sign.
The Debt-to-Equity (DE) ratio of Sambandam Spinning Mills compares its total debt to shareholders' equity. A higher Debt to Equity ratio could indicate higher financial risk, while a lower ratio suggests that the company is managing its debt efficiently.
CAGR shows the consistent growth rate of Sambandam Spinning Mills over a specific period, whether it is over a month, a year, or 10 years. It is a key metric to evaluate the company’s long-term growth potential. Main metrics for which CAGR is calculated are net sales, net profit, operating profit, and stock returns.
Technical analysis of Sambandam Spinning Mills helps investors get an insight into when they can enter or exit the stock. Key components of Sambandam Spinning Mills Technical Analysis include:
There are usually multiple support levels, but the main support levels for a stock are S1, S2, S3. Support levels indicate price points where stock might get support from buyers, helping the stock stop falling and rise.
There are usually multiple resistance levels, but the main resistance levels for a stock are R1, R2, R3. Resistance levels represent price points where Sambandam Spinning Mills shares often struggle to rise above due to selling pressure.
Dividends refer to the portion of the company’s profits distributed to its shareholders. Dividends are typically paid out in cash and reflect Sambandam Spinning Mills ’s financial health and profitability.
Bonus shares are usually given by companies to make the stock more affordable, increase liquidity, boost investor confidence, and more.
Stock split increases the number of its outstanding shares by dividing each existing share into multiple shares. When the company offers a stock split, the face value of the stock reduces in the same proportion as the split ratio.
The financials of Sambandam Spinning Mills provide a complete view to investors about its net sales, net profit, operating profits, expenses, and overall financial health. Investors can analyze financial data to assess the company’s stability and also understand how the company has been growing financially.
The profit and loss statement of Sambandam Spinning Mills highlights its net sales, net profit, total expenditure, and operating profits in the current financial year. This Profit and Loss statement is crucial for evaluating the profitability and financial stability of Sambandam Spinning Mills .
The balance sheet presents a snapshot of Sambandam Spinning Mills ’s assets, liabilities, and equity of shareholders, providing insights into the financials of the company.
Cashflow statements track the company's cash inflows and outflows over a period. It is an essential tool for understanding how well the company manages its liquidity and finances.