Bannari Amman Spinning Mills Limited (BASML) AI Stock Analysis

• Market Cap: ₹1.52B
• Dividend Yield: N/A
• Average Volume (3M): 16.79K
• Price to Earnings (P/E): 22.9
• Beta (1Y): 1.46
• 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: -0.71
• Price to Book (P/B): 1.84
• Price to Sales (P/S): 0.76
• P/FCF Ratio: -206.34
• 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: ₹19.00 ▼(-26.70% 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

Improvement in EBIT and EBITDA margins in 2025 indicates the company has tightened operational controls and raised efficiency. Sustained margin gains improve resilience to input cost swings in cotton and energy, supporting longer-term profitability even if top-line growth is slow.

Stable, focused business model

A clear, focused manufacturing model producing cotton yarn for domestic and export textile customers provides durable core demand and predictable revenue drivers (volumes, product mix, price spreads). This specialization supports operational expertise and repeatable cash generation over time.

Balance-sheet stability element

A relatively stable equity ratio and a modest return on equity in 2025 suggest the company has started to stabilize capital structure and deliver incremental shareholder returns. This recovery, if sustained, aids credibility with lenders and supports gradual deleveraging options.

Negative Factors

Declining Revenues

A persistent negative revenue trend reduces scale and undermines fixed-cost absorption in a manufacturing business. Over months this erodes margin improvement potential, limits reinvestment capacity, and makes it harder to fund modernization or expand product mix without external financing.

High and Rising Leverage

Increasing debt-to-equity raises refinancing and interest-rate risk, constraining strategic flexibility. For a capital-intensive textiles firm, high leverage can force prioritization of debt servicing over capex or working-capital needs, raising the likelihood of liquidity stress during cyclical downturns.

Weak Cash Conversion

Negative free cash flow and poor conversion of income into cash signal structural liquidity weakness. Over months this pressures the ability to fund working capital, service debt, and invest, increasing reliance on external financing and raising vulnerability to higher interest rates or tighter credit.

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

BASML primarily makes money by manufacturing and selling yarn to domestic and export customers in the textile value chain. Its core revenue stream is the sale of spun yarn (typically cotton and cotton-blended yarn) produced at its spinning facilities; revenue is recognized based on volumes sold and realized yarn prices. Earnings are influenced by product mix (counts/qualities and blends), capacity utilization, and the spread between input costs (notably raw cotton and other fibers, power, and labor) and finished yarn selling prices. Additional revenue streams from other textile products, branded consumer products, captive power, or specific long-term offtake/strategic partnerships are null (not available from the provided context).

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	8.84B	8.81B	9.14B	15.33B	10.04B	11.19B
Gross Profit	2.25B	623.29M	225.08M	4.08B	2.58B	2.91B
EBITDA	899.69M	648.16M	492.03M	1.69B	800.46M	1.11B
Net Income	130.09M	71.91M	-219.70M	524.39M	-110.02M	24.25M
Balance Sheet
Total Assets	10.10B	10.05B	12.28B	12.50B	11.15B	12.47B
Cash, Cash Equivalents and Short-Term Investments	381.75M	56.11M	78.91M	197.09M	177.38M	342.44M
Total Debt	4.49B	7.16B	5.07B	5.20B	5.84B	6.80B
Total Liabilities	5.42B	5.90B	7.77B	7.58B	7.77B	9.00B
Stockholders Equity	4.68B	3.63B	3.99B	4.52B	3.02B	3.12B
Cash Flow
Free Cash Flow	-261.61M	-32.36M	1.08B	180.60M	1.33B	1.13B
Operating Cash Flow	245.57M	228.22M	1.23B	560.21M	1.58B	1.39B
Investing Cash Flow	-282.67M	541.20M	-68.62M	-337.73M	-119.67M	69.12M
Financing Cash Flow	23.37M	-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: Positive
• 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 22.17, above the 50-day MA of 23.55, and below the 200-day MA of 28.11, indicating a bearish trend. The MACD of -1.23 indicates Positive momentum. The RSI at 29.17 is Positive, neither overbought nor oversold. The STOCH value of 6.47 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	₹1.87B	36.61	―	0.33%	15.16%	780.57%
DCMNVL	52 Neutral	₹2.00B	-56.98	―	―	-1.97%	-44.80%
MARALOVER	47 Neutral	₹1.64B	8.66	―	―	-0.90%	-304.07%
TTL	45 Neutral	₹2.18B	-51.56	―	0.59%	7.02%	-121.37%
BASML	44 Neutral	₹1.52B	22.90	―	―	-8.50%	―
ZODIACLOTH	40 Underperform	₹1.87B	-6.35	―	―	4.96%	14.10%

Bannari Amman Spinning Mills Limited Corporate Events

Bannari Amman Spinning Mills Corrects XBRL Filing Error for Q2 FY2025

Bannari Amman Spinning Mills has clarified that a discrepancy in its XBRL submission for the quarter ended 30 September 2025 arose from an inadvertent selection of half-yearly instead of quarterly reporting during the filing process. The company stressed that the standalone and consolidated financial results approved by the board and filed in PDF format were accurate and fully compliant with regulatory requirements.

The company has now submitted a revised XBRL filing reflecting the correct quarterly figures and received an acknowledgment from the exchange’s system. Management has expressed regret for the error, assured greater vigilance in future filings, and requested the exchange to take the corrected submission on record, aiming to preserve transparency and maintain investor and regulatory confidence.