Sangam India (SANGAMIND)
CyclicalFairStock Score: 37/100 — MIXED
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹601 |
| Market Cap | ₹2,963.53 Cr |
| P/E Ratio | 24.88 |
| ROCE | 6.63% |
| ROE | 6.17% |
| Dividend Yield | 0.33% |
| Profit Growth | 1,842.9% |
| Debt/Equity | 1.19 |
| Sales Growth | 8.9% |
| Free Cash Flow | ₹-24,16,249.92 Cr |
| Promoter Holding | 70.35% |
| 52-Week Range | ₹375 — ₹672.5 |
| Sector | Textiles & Apparels |
| Book Value | ₹214.2 |
Strengths
- Promoter holding of 70.35% aligns ownership with minority shareholders.
- Piotroski F-Score of 7/9 points to improving operational and balance-sheet fundamentals.
- Latest quarter is profitable: ₹762 Cr sales and ₹24 Cr net profit, signalling a near-term earnings recovery.
- Profit growth of 1000% shows the cyclical/turnaround potential from a depressed base.
Concerns
- ROE of 6.17% and ROCE of 6.63% are weak, indicating poor returns on capital.
- Debt/equity of 1.19 with negative free cash flow is risky in a cyclical textile industry.
- P/E of 35.36 and P/B of 2.64 with only 2.07% sales growth leave no margin of safety.
- Dividend yield of 0.43% offers negligible compensation while waiting.
AI Analysis
I appreciate a good turnaround, but I buy proof, not hope. Sangam India shows a 1000% profit growth figure, yet that is from a thin base. The latest quarter earned ₹24 Cr on ₹762 Cr of sales, but the trailing P/E is still 35.36. Graham would remind me that a low earnings yield and a P/B of 2.64 against book value of ₹200.97 leave little margin of safety for a business earning only 6.17% on equity and 6.63% on capital employed. Sales growth is just 2.07%, so this is not a compounding franchise. The 0.07 PEG is seductive, but the denominator is a one-year earnings jump, not durable growth. I also see debt/equity of 1.19; in a cyclical textile business, leverage turns temporary downturns into permanent losses. Free cash flow is negative despite reported profits, and the dividend yield of 0.43% means I am not paid to wait. There are some encouraging signs: the Piotroski F-Score is 7/9, promoters own 70.35%, and the latest quarter is profitable. These suggest the operation may be stabilizing. But at ₹530, the market is already paying for perfection. I would wait for a lower price, stronger cash conversion, and a cleaner balance sheet. This is a cyclical recovery, not a predictable grower, and I can afford to pass.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer