Amarjothi Spinning Mills Ltd

₹ 168 0.93%
16 Aug 11:52 a.m.
About

Amarjothi Spinning Mills Ltd is engaged in the business of processing and manufacturing of Yarn and Fiber and generation of Wind Power. [1]

Key Points

Market Presence
The Company is a major supplier of melange yarn in Tirupur market specifically.[1]

Products
The Co offers a range of yarn products that include cotton, organic cotton, organic exchange, viscose, polyester, bamboo, modal, excel, galaxy, neps, flax, multi-fiber series, and dyed yarn in various blends, shades, counts, and volumes. [2]

Clients
Some of the clients of the co. are Levis, H&M, Adidas, Tommy Hilfiger , Jack and Jones, etc. [3]

Geographical Split
Domestic: 92% in FY21 vs 94% in FY20
Export : 8% in FY21 vs 6% in FY20[4]

Windmills
The Company has acquired two windmills with the capacity of 4.2 MW at the cost of Rs.17 crores. Power generated by the company’s windmills are not fully utilized by the Electricity Board for which windmills were kept idle for some time in FY21.[5][6]

Land Acquisition
The Co has purchased 3.68 acres of land situated at Melandipuram Village, Tuticorin for 25 lakh and 3.90 acres of land situated at Ulakudi Village, Tuticorin for 25 lakhs. [7]

Labour scarcity
The company is facing labour scarcity problem and the management believes this might impact the production. It will also bear the impact of fluctuating yarn prices. [5]

Cost Savings
The Company is in the process of implementing several cost saving measures including modernization, which will make the product more competitive. [8]

  • Market Cap 113 Cr.
  • Current Price 168
  • High / Low 225 / 144
  • Stock P/E 6.27
  • Book Value 246
  • Dividend Yield 1.31 %
  • ROCE 10.9 %
  • ROE 13.5 %
  • Face Value 10.0

Pros

  • Stock is trading at 0.69 times its book value
  • Company is expected to give good quarter

Cons

  • The company has delivered a poor sales growth of 2.92% over past five years.
  • Company has a low return on equity of 11.3% for last 3 years.
  • Company might be capitalizing the interest cost

* The pros and cons are machine generated. Pros / cons are based on a checklist to highlight important points. Please exercise caution and do your own analysis.

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Quarterly Results

Standalone Figures in Rs. Crores / View Consolidated

Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021 Dec 2021 Mar 2022 Jun 2022
49.38 47.35 35.91 49.89 21.74 36.32 41.23 67.45 61.21 73.81 50.37 64.91 73.92
39.27 37.61 26.79 44.16 15.71 30.26 32.38 60.49 52.93 64.01 43.09 57.04 64.20
Operating Profit 10.11 9.74 9.12 5.73 6.03 6.06 8.85 6.96 8.28 9.80 7.28 7.87 9.72
OPM % 20.47% 20.57% 25.40% 11.49% 27.74% 16.69% 21.46% 10.32% 13.53% 13.28% 14.45% 12.12% 13.15%
0.13 0.38 0.80 1.38 0.21 6.79 0.43 0.70 0.36 0.43 0.68 0.16 0.21
Interest 2.09 1.72 1.46 1.58 1.47 1.76 0.82 1.54 0.97 1.13 1.09 1.85 1.59
Depreciation 3.91 3.78 3.98 3.87 3.83 3.78 3.35 3.04 3.08 2.60 1.94 1.85 2.13
Profit before tax 4.24 4.62 4.48 1.66 0.94 7.31 5.11 3.08 4.59 6.50 4.93 4.33 6.21
Tax % 20.28% 20.35% 20.31% 17.47% 20.21% 20.38% 17.42% 17.53% 17.65% 17.69% 17.65% 17.55% 17.55%
Net Profit 3.38 3.68 3.57 1.37 0.75 5.83 4.22 2.54 3.79 5.36 4.06 3.56 5.12
EPS in Rs 5.01 5.45 5.29 2.03 1.11 8.64 6.25 3.76 5.61 7.94 6.01 5.27 7.59

Profit & Loss

Standalone Figures in Rs. Crores / View Consolidated

Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 TTM
124 132 160 198 201 194 217 189 212 183 167 250 263
89 104 133 142 156 161 174 156 171 147 139 217 228
Operating Profit 35 29 27 56 45 33 43 34 41 36 29 33 35
OPM % 28% 22% 17% 28% 22% 17% 20% 18% 19% 20% 17% 13% 13%
4 1 8 2 2 2 4 4 8 2 8 2 1
Interest 11 12 13 15 16 13 12 12 13 7 6 5 6
Depreciation 12 13 15 16 14 13 14 13 15 16 14 9 9
Profit before tax 15 4 6 27 18 9 21 13 20 15 16 20 22
Tax % 37% 22% 36% 25% 24% 7% 35% 8% 29% 31% 1% -4%
Net Profit 10 3 4 20 13 9 14 12 14 10 16 21 18
EPS in Rs 14.52 4.89 5.94 29.79 19.59 12.76 20.43 17.67 21.35 15.30 24.16 31.24 26.81
Dividend Payout % 14% 31% 30% 7% 10% 16% 10% 11% 9% 13% 9% 7%
Compounded Sales Growth
10 Years: 7%
5 Years: 3%
3 Years: 6%
TTM: 28%
Compounded Profit Growth
10 Years: 21%
5 Years: 10%
3 Years: 24%
TTM: 11%
Stock Price CAGR
10 Years: 14%
5 Years: -7%
3 Years: 38%
1 Year: -7%
Return on Equity
10 Years: 13%
5 Years: 11%
3 Years: 11%
Last Year: 14%

Balance Sheet

Standalone Figures in Rs. Crores / View Consolidated

Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022
7 7 7 7 7 7 7 7 7 7 7 7
Reserves 37 39 41 61 73 80 93 103 116 125 140 159
115 80 91 114 95 77 69 120 77 54 67 87
30 25 28 41 34 26 34 21 28 33 25 26
Total Liabilities 188 150 167 223 208 189 203 251 228 219 237 279
85 81 101 124 119 106 84 123 108 104 120 111
CWIP 5 2 5 6 5 5 5 5 5 5 5 37
Investments 1 1 1 1 3 3 4 2 1 2 2 2
97 66 60 92 82 75 111 121 113 107 111 129
Total Assets 188 150 167 223 208 189 203 251 228 219 237 279

Cash Flows

Standalone Figures in Rs. Crores / View Consolidated

Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022
1 60 38 30 40 24 14 18 63 43 37 16
-25 -7 -37 -37 -4 0 7 -51 -3 -12 -43 -30
24 -53 -1 7 -35 -24 -22 33 -59 -31 7 14
Net Cash Flow 0 0 0 0 -0 0 -1 -0 0 -1 1 -0

Ratios

Standalone Figures in Rs. Crores / View Consolidated

Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022
Debtor Days 48 39 44 39 34 38 46 56 51 61 81 52
Inventory Days 407 208 84 206 185 155 231 297 178 186 188 172
Days Payable 32 14 18 50 30 12 27 18 29 49 21 27
Cash Conversion Cycle 423 233 110 195 189 181 250 335 199 198 248 197
Working Capital Days 225 123 86 103 98 118 143 196 154 162 170 143
ROCE % 20% 12% 15% 26% 18% 13% 19% 12% 13% 11% 11% 11%

Shareholding Pattern

Numbers in percentages

14 recently
Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021 Dec 2021 Mar 2022 Jun 2022
55.05 55.05 55.05 55.05 55.05 55.18 55.24 55.24 55.24 55.52 57.24 57.66
0.00 0.04 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
44.95 44.91 44.95 44.95 44.95 44.82 44.76 44.76 44.76 44.48 42.76 42.34

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