Sangam (India) Limited (SANGAMIND) AI Stock Analysis

• Market Cap: ₹21.71B
• Dividend Yield: 0.45%
• Average Volume (3M): 7.08K
• Price to Earnings (P/E): 25.6
• Beta (1Y): 1.77
• Revenue Growth: 13.88%
• EPS Growth: -0.56%
• Country: IN
• Employees: 9,931
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Manufacturers
• EPS (TTM): 4.87
• Shares Outstanding: 50,246,560
• 10 Day Avg. Volume: 15,463
• 30 Day Avg. Volume: 7,079
• PEG Ratio: -2.98
• Price to Book (P/B): 2.12
• Price to Sales (P/S): 0.75
• P/FCF Ratio: 77.94
• 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: 63 Neutral
• Price Target: ₹450.00 ▼(-6.58% Downside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

The score is driven primarily by mixed financial performance (profitability pressure, higher leverage, and inconsistent free cash flow). Technicals are supportive with an established uptrend, but a high P/E and low dividend yield weigh on the valuation component.

Positive Factors

Vertically integrated textile value chain

Vertical integration across yarn and fabric manufacturing gives Sangam control of inputs, quality and internal supply. That reduces supplier dependence, allows capture of value across the chain, and supports durable margin management and faster responsiveness to domestic and export customers.

Consistent positive revenue growth

Reported revenue growth (~9.25%) indicates sustained end-market demand for Sangam's products. Ongoing top-line expansion supports better plant utilization and scale economics, creating a foundation for margin recovery and consistent cash generation over the medium term if operational execution holds.

Healthy operating cash conversion

A healthy operating cash flow to net income ratio shows Sangam converts reported profits into cash effectively. Persistent operational cash generation provides working-capital flexibility and a buffer for routine capex, supporting operations and investment capacity through typical textile-cycle fluctuations.

Negative Factors

Relatively high financial leverage

A relatively high debt-to-equity ratio raises financial risk and amplifies sensitivity to interest rates or demand shocks. Elevated leverage constrains strategic flexibility, increases refinancing and interest costs, and limits the firm's capacity to invest or absorb cyclical downturns without raising external capital.

Inconsistent free cash flow

Free cash flow volatility and occasional negative FCF driven by elevated capex reduce capacity to pay down debt or return capital. Persistent FCF inconsistency forces dependence on external financing for growth or liquidity needs, weakening long-term financial resilience and strategic optionality.

Declining margins and weak profitability

Material declines in gross and EBIT margins and a low net margin point to structural cost or pricing pressure. Reduced profitability curtails internal funding for reinvestment, diminishes buffer against input-cost shocks, and necessitates operational improvements or pricing power restoration for durable earnings recovery.

Sangam (India) Limited Business Overview & Revenue Model

Company Description

Sangam (India) Limited manufactures and sells PV dyed yarns in India and internationally. Its product portfolio includes PV dyed/grey yarns, cotton spun and open ended yarns, indigo rope dyed yarns, texturized yarns, PV fabrics and processed fabrics, synthetic blended fabrics, cotton knitted fabrics, and denim fabrics, as well as seamless garments, such as air wear, intimate wear, shape wear, leisure wear, active wear, and casual wear garments for women. The company also produces steel; solar, thermal, and wind power; and develops real estate properties. It markets its products under the C9 Airwear, Sangam Suitings, Sangam Denims, and Sangam Yarns brands through online and offline channels. The company also exports its products. Sangam (India) Limited was incorporated in 1984 and is headquartered in Mumbai, India.

How the Company Makes Money

Sangam (India) Limited primarily makes money by selling manufactured textile products. Its core revenue stream comes from the sale of yarn (notably polyester/viscose and other blended yarns) produced in-house and sold to textile processors, garment manufacturers, and other industrial buyers. A second revenue stream comes from the sale of fabric/processed textile materials manufactured by the company, where revenue is driven by volumes shipped and realizations (price per unit) influenced by product mix, quality, and prevailing yarn/fabric market prices. Earnings are also affected by raw-material costs (e.g., polyester/viscose inputs), manufacturing utilization, and demand from both domestic customers and export markets. Specific information on material partnerships, customer concentration, or segment-wise revenue breakdown is null.

Sangam (India) Limited Financial Statement Overview

Summary

Mixed fundamentals: revenue growth has been uneven and profitability is pressured (lower gross/EBIT margins and low net margin). Balance sheet is moderately strong but leverage is relatively high, and free cash flow has been inconsistent despite healthy operating cash conversion.

Income Statement

Sangam (India) Limited shows a mixed income statement performance. The gross profit margin has significantly dropped from previous years, indicating cost pressures or changes in pricing. Net profit margin is low, reflecting challenges in converting revenue to profit. Revenue has shown growth overall, but with fluctuations between years, suggesting potential volatility in sales. The EBIT margin has declined, indicating reduced operational efficiency. EBITDA margin is relatively stable but could improve. The company needs to focus on cost control and operational efficiency to enhance profitability.

Balance Sheet

The balance sheet shows moderate strength. The debt-to-equity ratio is relatively high, indicating significant leverage which poses financial risk, especially in volatile market conditions. Return on equity has seen fluctuation but is overall moderate, reflecting a reasonable return for shareholders. Equity ratio suggests a balanced approach towards funding through equity as opposed to relying heavily on debt. Improvements in equity and reduction in debt would strengthen financial stability.

Cash Flow

Cash flow analysis reveals some concerns. The operating cash flow to net income ratio is healthy, indicating good cash generation from operations. However, free cash flow has been inconsistent, showing negative figures in some years due to high capital expenditures. Free cash flow to net income is weak, suggesting limited cash availability post-investment activities. The company should aim to optimize capital expenditure to enhance free cash flow generation.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	30.64B	28.57B	26.28B	26.78B	24.02B	13.36B
Gross Profit	7.44B	4.56B	7.73B	11.79B	9.10B	5.01B
EBITDA	2.69B	2.53B	2.15B	2.93B	3.02B	1.31B
Net Income	372.30M	318.00M	408.20M	1.31B	1.41B	42.10M
Balance Sheet
Total Assets	31.42B	29.55B	27.29B	21.61B	18.24B	14.09B
Cash, Cash Equivalents and Short-Term Investments	1.23B	1.31B	104.40M	70.60M	11.30M	1.90M
Total Debt	12.92B	11.38B	10.66B	8.26B	6.10B	5.89B
Total Liabilities	21.21B	19.48B	17.45B	12.77B	11.08B	8.56B
Stockholders Equity	10.21B	10.07B	9.84B	8.83B	7.16B	5.52B
Cash Flow
Free Cash Flow	-959.40M	274.30M	-2.48B	-1.73B	-1.13B	715.10M
Operating Cash Flow	92.50M	3.42B	1.60B	2.16B	910.60M	1.33B
Investing Cash Flow	-1.14B	-3.79B	-3.90B	-3.54B	-1.92B	-429.30M
Financing Cash Flow	846.80M	591.00M	2.30B	1.43B	1.13B	-931.70M

Sangam (India) Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 481.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SANGAMIND, the sentiment is Negative. The current price of 481.7 is above the 20-day moving average (MA) of 449.38, above the 50-day MA of 457.40, and above the 200-day MA of 433.19, indicating a bearish trend. The MACD of -9.71 indicates Positive momentum. The RSI at 42.07 is Neutral, neither overbought nor oversold. The STOCH value of 33.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SANGAMIND.

Sangam (India) Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLSEL	72 Outperform	₹11.73B	9.13	―	0.95%	-11.39%	-12.82%
RSWM	66 Neutral	₹6.35B	73.65	―	―	5.54%	―
HUHTAMAKI	64 Neutral	₹12.17B	13.53	―	0.95%	-1.59%	-75.34%
SANGAMIND	63 Neutral	₹21.71B	25.56	―	0.45%	13.88%	-0.56%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
DOLLAR	57 Neutral	₹13.92B	27.11	―	0.82%	11.71%	14.14%
MARALOVER	47 Neutral	₹1.62B	8.66	―	―	-0.90%	-304.07%