Bannari Amman Spinning Mills Limited (BASML) AI Stock Analysis

• Market Cap: ₹1.85B
• Dividend Yield: N/A
• Average Volume (3M): 16.79K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 1.42
• Revenue Growth: -8.50%
• EPS Growth: N/A
• Country: IN
• Employees: 3,086
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.28
• 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: 44 Neutral
• Price Target: ₹24.50 ▼(-5.48% Downside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

The score is primarily held down by weak financial performance, driven by high leverage, declining revenues, and cash flow deterioration (negative free cash flow in 2025). Technicals are mixed but still trend-negative versus longer-term moving averages, while valuation is only moderately supportive based on the P/E.

Positive Factors

Improving operating margins

Reported improvement in EBIT and EBITDA margins in 2025 suggests management has achieved better operational efficiency or cost control. If sustained, higher operating margins can support earnings stability, improve cash generation per unit of revenue, and provide resilience through commodity cost cycles.

Stable equity ratio

A relatively stable equity ratio indicates the company has maintained capital base despite earnings volatility. This stability can provide a cushion against shocks, support access to credit on reasonable terms, and help absorb short-term operating stress while management addresses leverage and cash flow issues.

Clear, repeatable business model

A focused manufacturing business selling cotton and blended yarn to domestic and export textile customers is a durable, repeatable revenue stream tied to global textile demand. The predictable production-sales relationship allows operational planning, capacity utilization improvements, and long-term customer relationships.

Negative Factors

Declining revenue trend

Sustained negative revenue growth erodes scale economics, reduces margin leverage, and constrains reinvestment capacity. Over multiple quarters, falling top line pressures factory throughput, bargaining power with suppliers and customers, and makes it harder to recover fixed costs, harming long-term competitiveness.

High and rising leverage

Increasing debt-to-equity raises financial risk and interest burden, reducing flexibility to invest or weather demand downturns. With higher leverage the firm faces greater refinancing and covenant risk, which can force defensive actions (asset sales, cutbacks) that impair long-term growth prospects.

Deteriorating cash conversion

Negative free cash flow and weak conversion from net income indicate liquidity stress and constrained ability to fund capex, debt service, or working capital from operations. Persistent cash shortfalls increase dependence on external financing and limit the company's ability to execute strategic investments reliably.

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

Weak fundamentals overall: declining revenue trend, pressured gross margins, high and rising leverage, and volatile cash flows with free cash flow turning negative in 2025. While profitability and operating margins improved in 2025, financial stability and cash conversion remain key concerns.

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	Mar 2025	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	8.89B	8.81B	9.14B	15.33B	10.04B	11.19B
Gross Profit	2.51B	623.29M	225.08M	4.08B	2.58B	2.91B
EBITDA	875.17M	648.16M	492.03M	1.69B	800.46M	1.11B
Net Income	86.29M	71.91M	-219.70M	524.39M	-110.02M	24.25M
Balance Sheet
Total Assets	0.00	10.05B	12.28B	12.50B	11.15B	12.47B
Cash, Cash Equivalents and Short-Term Investments	32.10M	56.11M	78.91M	197.09M	177.38M	342.44M
Total Debt	0.00	7.16B	5.07B	5.20B	5.84B	6.80B
Total Liabilities	-4.15B	5.90B	7.77B	7.58B	7.77B	9.00B
Stockholders Equity	4.15B	3.63B	3.99B	4.52B	3.02B	3.12B
Cash Flow
Free Cash Flow	0.00	-32.36M	1.08B	180.60M	1.33B	1.13B
Operating Cash Flow	0.00	228.22M	1.23B	560.21M	1.58B	1.39B
Investing Cash Flow	0.00	541.20M	-68.62M	-337.73M	-119.67M	69.12M
Financing Cash Flow	0.00	-816.22M	-1.13B	-210.54M	-1.63B	-1.23B

Bannari Amman Spinning Mills Limited Technical Analysis

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

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 24.44, above the 50-day MA of 24.89, and below the 200-day MA of 28.74, indicating a bearish trend. The MACD of -0.24 indicates Positive momentum. The RSI at 42.72 is Neutral, neither overbought nor oversold. The STOCH value of 18.73 is Positive, 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	₹2.04B	12.70	―	0.33%	15.16%	780.57%
DCMNVL	58 Neutral	₹2.56B	53.57	―	―	-1.97%	-44.80%
MARALOVER	47 Neutral	₹1.85B	-18.44	―	―	-0.90%	-304.07%
TTL	45 Neutral	₹2.47B	-50.97	―	0.59%	7.02%	-121.37%
BASML	44 Neutral	₹1.85B	12.26	―	―	-8.50%	―
ZODIACLOTH	42 Neutral	₹2.06B	-6.39	―	―	4.96%	14.10%