Sangam (India) Limited (SANGAMIND) AI Stock Analysis

• Market Cap: ₹21.72B
• Dividend Yield: 0.45%
• Average Volume (3M): 7.08K
• Price to Earnings (P/E): 25.6
• Beta (1Y): 1.68
• 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: ₹467.00 ▼(-3.05% 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

Integrated textile value chain & export reach

Vertical integration across yarn and fabric production and sales to domestic and export markets supports resilient revenue streams, better margin capture, and operational flexibility. This structural position helps the company adjust product mix and preserve margins over a multi-month horizon.

Strong operating cash generation

Healthy operating cash conversion indicates core operations generate cash reliably, which supports working capital, debt servicing and ongoing operations. This durability cushions the business against cyclical revenue swings and aids medium-term financial stability despite FCF variability.

Positive top-line growth trend

Sustained positive revenue growth (~9% reported) signals ongoing demand for the company's yarn/fabric products. Even with year-to-year volatility, a multi-year growth trend supports scale economies and the potential to recover margins if cost control and mix improvements follow.

Negative Factors

Profitability pressure and margin compression

Declining gross and EBIT margins and low net margin reduce the firm's ability to generate retained earnings and buffer against input-cost shocks. Structural margin weakness limits reinvestment capacity and makes earnings more sensitive to commodity and pricing cycles over the medium term.

Relatively high leverage

Elevated debt-to-equity increases financial vulnerability in a cyclical industry, constraining strategic flexibility and increasing interest burden. Over 2–6 months, leverage can pressure liquidity and limit capacity to fund investments or smooth earnings through downturns.

Inconsistent free cash flow due to capex

Volatile or negative free cash flow after capex reduces available cash for deleveraging, dividends, or unexpected expenses. Persistent capex-driven FCF swings can hinder long-term balance sheet repair and limit the company's ability to fund growth without additional external financing.

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: Positive
• Last Price: 481.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 Positive. The current price of 481.7 is above the 20-day moving average (MA) of 445.39, above the 50-day MA of 454.47, and above the 200-day MA of 433.55, indicating a neutral trend. The MACD of -7.81 indicates Positive momentum. The RSI at 46.21 is Neutral, neither overbought nor oversold. The STOCH value of 69.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	₹11.56B	9.13	―	0.95%	-11.39%	-12.82%
RSWM	66 Neutral	₹6.22B	73.65	―	―	5.54%	―
HUHTAMAKI	64 Neutral	₹12.30B	13.53	―	0.95%	-1.59%	-75.34%
SANGAMIND	63 Neutral	₹21.72B	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	₹14.75B	27.11	―	0.82%	11.71%	14.14%
MARALOVER	47 Neutral	₹1.66B	8.66	―	―	-0.90%	-304.07%

Sangam (India) Limited Corporate Events

Sangam (India) Opens Special Window for Legacy Physical Share Transfers

Sangam (India) Limited has notified exchanges that it has published newspaper advertisements in Business Standard and Pratahkal regarding a special window for re-lodgment of physical share transfer requests. The facility applies to shareholders whose physical share transfer deeds, originally lodged before the 1 April 2019 cut-off and subsequently rejected, returned or left unattended due to documentation or process deficiencies, can now be re-submitted with the registrar Bigshare Services until 4 February 2027, potentially aiding legacy investors in regularising their holdings and improving share-transfer compliance.

This move is expected to facilitate smoother reconciliation of pending physical share transfers and reduce legacy disputes, aligning the company’s share-transfer framework more closely with post-2019 regulatory norms while offering a final opportunity for affected shareholders to secure proper registration of their securities. The window may also support better registry accuracy and transparency, benefiting both the company and its broader stakeholder base by cleaning up long-outstanding transfer issues.