Bannari Amman Spinning Mills Faces Continued Challenges Amid Weak Growth and High Debt

Mar 13 2025 09:44 AM IST
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Bannari Amman Spinning Mills has reached a new 52-week low, reflecting a significant decline in its stock performance. The company has struggled with weak growth and high debt levels, despite reporting a higher profit for the recent half-year period. Its long-term outlook remains challenging amid ongoing bearish trends.
Bannari Amman Spinning Mills has experienced significant activity today, hitting a new 52-week low of Rs. 30.5. The stock has been on a downward trend, losing 11.6% over the past five days, and is currently trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. This microcap textile company has faced challenges, reflected in its one-year performance of -18.47%, contrasting sharply with the Sensex's gain of 1.90% during the same period.

The company's long-term fundamentals show weak growth, with a -36.06% CAGR in operating profits over the last five years. Additionally, Bannari Amman Spinning Mills has a high debt-to-EBITDA ratio of 11.14 times, indicating low capacity to service its debt. Despite these challenges, the company reported a higher PAT of Rs. 3.28 crore for the half-year ending December 2024, and its operating profit to interest ratio stands at a healthy 1.85 times.

Overall, Bannari Amman Spinning Mills continues to face a bearish technical trend, with consistent underperformance against benchmarks over the last three years.
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