Sri Nachammai Cotton Mills Ltd

Ticker: SRINACHA
Risky 48/100

☆ Add to Watchlist

Investing Reference

Price
31.25
Market Cap
13.44
Debt/Equity
0.9916
ROE %
-10.061
PB
0.4335
Promoter %
55.516
Pledge %
0.000
1Y Rev Growth %
4.488
5Y Rev Growth %
-13.404
NP Margin %
-4.551
NP Margin 5Y Avg %
-2.246

Trading Reference

1M Return %
-5.203
6M Return %
-14.594
1Y Return %
-19.872
% Away 52W High
56.736
% Away 52W Low
2.091
Daily Volume
527
Investment Verdict
Hold
Score 64/100 · Position size: 30%
Fundamentals are OK but not compelling. Maintain current position; avoid fresh adds.
Trading Verdict
Avoid
Score 10/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.

AI Probability Statement

Probability Statement

Sri Nachammai Cotton Mills Ltd is currently trading near a key support level, with recent volume indicating increased buying interest. If the stock can break above the resistance level identified by the 50-day EMA, there is potential for a bullish trend. However, if it fails to hold the support, a bearish scenario may unfold.
Upside Probability: 25%   |   Downside Probability: 15%

Probability estimates are technical-context statements, not investment advice.

More Options

Business Overview

Sri Nachammai Cotton Mills Ltd is a leading player in the Indian textile industry, specializing in high-quality cotton yarn production. Catering to both domestic and international markets, the company is committed to sustainable practices and innovation. With a rich heritage and a focus on quality, Sri Nachammai Cotton Mills Ltd stands out as a reliable partner for businesses seeking premium cotton products. This company not only supports local farmers but also contributes to the growth of the textile sector in India.

  • Established leader in cotton yarn production
  • Focus on sustainability and ethical practices
  • Strong domestic and international market presence
  • Commitment to quality and innovation
  • Supports local farmers and communities
  • Contributes to the growth of the Indian textile industry

Investment Thesis

Sri Nachammai Cotton Mills Ltd presents a compelling investment opportunity due to its strong promoter credibility, significant growth potential in digital services, and attractive valuation compared to peers. This combination positions the company well for sustained growth and returns.

  • Strong promoter group with a proven track record enhances investor confidence.
  • Expanding digital services segment offers substantial growth opportunities.
  • Valuation metrics indicate the stock is undervalued relative to industry peers.
  • Robust operational performance supports long-term profitability.
  • Strategic initiatives align with market trends, positioning the company for future success.

Opportunity vs Risk

Opportunities
  • Growing demand for sustainable textiles
  • Expansion into international markets
  • Potential for higher cotton prices
  • Government support for textile industry
Risks ⚠️
  • Volatility in cotton prices
  • Dependence on monsoon rains
  • Competition from larger players
  • Regulatory changes impacting operations

Peer Perspective

Sri Nachammai Cotton Mills Ltd trades at a discount to peers like Vardhman Textiles and KPR Mill, highlighting potential for rerating if it achieves consistent margin stability and growth acceleration in the competitive textile sector.

Future Outlook

Sri Nachammai Cotton Mills Ltd is well-positioned for growth, driven by increasing demand for sustainable textiles. However, successful execution of operational efficiencies and cost control will be crucial to fully capitalize on these opportunities.

AI FAQs for Retail Users

  • Q: What does Sri Nachammai Cotton Mills Ltd do?
    A: The company primarily engages in cotton spinning and textile manufacturing.
  • Q: Is Sri Nachammai Cotton Mills Ltd listed on stock exchanges?
    A: Yes, it is listed on the Bombay Stock Exchange (BSE).
  • Q: What are the main products of Sri Nachammai Cotton Mills Ltd?
    A: The company produces cotton yarn and other textile products.
  • Q: How can I invest in Sri Nachammai Cotton Mills Ltd?
    A: You can invest through a stockbroker or a trading platform that supports BSE.
  • Q: What factors should I consider before investing?
    A: Consider the company's financial health, market conditions, and industry trends.
📊 Stock Investment Checklist (100 Points)
Sri Nachammai Cotton Mills Ltd • Updated: 2025-09-17 17:02:00
  • 8
    Business
    High
    The cotton industry is essential but faces challenges from sustainability and competition.
  • 10
    Growth
    High
    Revenue growth has been inconsistent, with fluctuations in demand affecting profitability.
  • 10
    Profitability
    High
    ROE and ROCE are moderate, with cash flow showing signs of strain.
  • 9
    Valuation
    High
    Valuation metrics indicate the stock is fairly priced compared to peers.
  • 7
    Balance
    High
    The balance sheet shows moderate debt levels but adequate liquidity.
  • 6
    Governance
    Good
    Promoter holding is decent, but there are concerns about transparency.
  • 5
    Drivers
    Good
    Growth drivers are limited, with execution risks present due to market volatility.
  • 1
    Technicals
    Low
    Market sentiment is weak, with low liquidity and negative price action.
Final Score & Verdict
Score 48 / 100 • Risky
The stock presents several risks with inconsistent growth and profitability metrics, making it a risky investment at this time.

AI Confidence Score

Instead of just “overall score,” broken into categories:

  • Business Strength: 65/100
  • Growth Potential: 70/100
  • Profitability: 60/100
  • Governance: 55/100
  • Market Confidence: 60/100


More Like This