Bannari Amman Spinning Mills Limited (BASML) AI Stock Analysis

• Market Cap: ₹1.96B
• Dividend Yield: N/A
• Average Volume (3M): 16.79K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 1.47
• Revenue Growth: -8.50%
• EPS Growth: N/A
• Country: IN
• Employees: 3,086
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.69
• Shares Outstanding: 79,921,370
• 10 Day Avg. Volume: 9,098
• 30 Day Avg. Volume: 16,791
• PEG Ratio: -0.74
• Price to Book (P/B): 1.92
• Price to Sales (P/S): 0.79
• P/FCF Ratio: -215.51
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: ₹24.00 ▼(-7.41% Downside)

The overall stock score of 47 reflects significant financial challenges, including declining revenues and high leverage, which weigh heavily on the company's outlook. Technical indicators provide some short-term bullish signals, but the valuation is only moderate, with no dividend yield to attract income investors. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Stable recurring yarn demand

The company’s core business is manufacturing spun yarn sold to downstream fabric makers and exporters. This positions BASML within a recurring, industrial textile supply chain where volumes are driven by broad textile demand, providing a durable revenue base if execution and pricing hold.

Operating margin recovery

Improving EBIT and EBITDA margins in 2025 suggest management has implemented operational efficiencies or cost controls. Sustained margin recovery increases resilience to commodity cost swings, enhances cash generation, and supports reinvestment capacity across a multi-month horizon if maintained.

Prior free cash flow generation

Historical positive free cash flow indicates the business model can convert earnings into cash under normal conditions. That track record implies potential to restore liquidity through operating improvements and working-capital normalization, supporting durable funding for operations or deleveraging.

Negative Factors

Declining revenue trend

Nearly 8.5% revenue decline signals loss of top-line momentum. Persistent revenue contraction reduces scale economics, pressures margins, and limits reinvestment capacity. Without strategic sales recovery or new demand channels, this trend can structurally weaken profitability over the coming months.

High and rising leverage

Elevated and rising debt-to-equity increases financial risk in a cyclical textile business. Higher interest costs and covenant pressure constrain capital allocation, limit flexibility for capex or buffering raw-material shocks, and amplify downside during revenue or margin stress in the medium term.

Margin compression from costs

A significant decline in gross margin over several years points to sustained input-cost or pricing pressure and weaker cost pass-through. Even with recent operating gains, continued gross-margin erosion undermines long-term cash flows, competitiveness, and the durability of any margin improvements.

Bannari Amman Spinning Mills Limited Business Overview & Revenue Model

Company Description

Bannari Amman Spinning Mills Ltd engages in the textile business in India. It manufactures and markets cotton yarns; woven and knitted fabrics; home textiles; and knitted garments, as well as processes fabrics. The company is also involved in the retail of inner wear and active wear for men, women, and kids under the Bitz brand. It also exports its products. The company was incorporated in 1989 and is based in Coimbatore, India. Bannari Amman Spinning Mills Ltd is a subsidiary of Murugan Enterprise Private Limited.

How the Company Makes Money

Bannari Amman Spinning Mills Limited generates revenue primarily through the sale of cotton yarn, which is produced in various counts and specifications to meet the diverse needs of its customers. The company's revenue model is driven by several key streams: direct sales to textile manufacturers and traders, long-term contracts with key clients, and exports to international markets. Additionally, BASML may engage in partnerships with cotton suppliers and other stakeholders in the textile value chain, enhancing its supply chain efficiency and reducing costs. Factors contributing to its earnings include the growing demand for sustainable and high-quality yarn, effective cost management strategies, and the ability to adapt to market trends and customer preferences.

Bannari Amman Spinning Mills Limited Financial Statement Overview

Summary

Bannari Amman Spinning Mills Limited faces challenges with declining revenues, high leverage, and cash flow volatility. Despite some improvements in operational efficiency, the financial stability and profitability remain concerns. The company needs to focus on improving its cost management and reducing debt levels to enhance its financial health.

Income Statement

Bannari Amman Spinning Mills Limited has shown a declining revenue trend with a negative revenue growth rate over the past few years. The gross profit margin has decreased significantly from 2021 to 2025, indicating pressure on cost management. The net profit margin has been volatile, turning positive in 2025 after a series of losses. However, the EBIT and EBITDA margins have shown some improvement in 2025, suggesting better operational efficiency.

Balance Sheet

The company's balance sheet indicates a high debt-to-equity ratio, which has increased over the years, reflecting higher leverage and potential financial risk. The return on equity has been negative in most years, except for a slight positive in 2025, indicating challenges in generating returns for shareholders. The equity ratio has remained relatively stable, but the high leverage remains a concern.

Cash Flow

Cash flow analysis reveals significant volatility, with free cash flow turning negative in 2025 after being positive in previous years. The operating cash flow to net income ratio is low, indicating challenges in converting income into cash. The free cash flow to net income ratio has also been negative, highlighting potential liquidity issues.

Breakdown	TTM	Dec 2025	Dec 2023	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.89B	8.81B	13.99B	9.14B	15.33B	10.04B
Gross Profit	2.51B	623.29M	3.70B	225.08M	4.08B	2.58B
EBITDA	875.17M	648.16M	217.31M	492.03M	1.69B	800.46M
Net Income	86.29M	71.91M	-295.95M	-219.70M	524.39M	-110.02M
Balance Sheet
Total Assets	0.00	10.05B	12.84B	12.28B	12.50B	11.15B
Cash, Cash Equivalents and Short-Term Investments	32.10M	56.11M	210.98M	78.91M	197.09M	177.38M
Total Debt	0.00	7.16B	6.21B	5.07B	5.20B	5.84B
Total Liabilities	-4.15B	5.90B	8.17B	7.77B	7.58B	7.77B
Stockholders Equity	4.15B	3.63B	4.21B	3.99B	4.52B	3.02B
Cash Flow
Free Cash Flow	0.00	-32.36M	-435.90M	1.08B	180.60M	1.33B
Operating Cash Flow	0.00	228.22M	10.29M	1.23B	560.21M	1.58B
Investing Cash Flow	0.00	541.20M	-480.21M	-68.62M	-337.73M	-119.67M
Financing Cash Flow	0.00	-816.22M	383.31M	-1.13B	-210.54M	-1.63B

Bannari Amman Spinning Mills Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 25.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:BASML, the sentiment is Negative. The current price of 25.92 is above the 20-day moving average (MA) of 23.81, below the 50-day MA of 26.32, and below the 200-day MA of 29.34, indicating a bearish trend. The MACD of -0.90 indicates Negative momentum. The RSI at 45.55 is Neutral, neither overbought nor oversold. The STOCH value of 73.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:BASML.

Bannari Amman Spinning Mills Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SHIVATEX	59 Neutral	₹2.18B	13.47	―	0.33%	15.16%	780.57%
DCMNVL	58 Neutral	₹2.50B	61.65	―	―	-1.97%	-44.80%
BASML	47 Neutral	₹1.96B	13.42	―	―	-8.50%	―
MARALOVER	47 Neutral	₹1.60B	-6.02	―	―	-0.90%	-304.07%
TTL	45 Neutral	₹1.87B	-45.95	―	0.59%	7.02%	-121.37%
ZODIACLOTH	42 Neutral	₹2.13B	-6.03	―	―	4.96%	14.10%