Sangam india

CMP...53.75


Born of humble beginnings in the year 1985, the group today is a business giant with over 7,000 employees and aims to achieve a billion dollar turnover by 2015.

The Group has more than 200,000 spindles and 4000 rotors for producing PV dyed yarn, cotton and OE yarn with an enviable reputation for quality, which is underlined by its ISO 9001:2008 certification. The Group is the largest producer of PV dyed yarn in Asia at single location. The Group is a forerunner in manufacturing ready to stitch fabric with the annual capacity to produce 30 million meters of fabric and 40 million meters of denim.

Charting a steady growth path, Sangam Group has diversified into infrastructure, power and recently the steel industry. The Group has introduced the world's largest medium frequency induction melting furnace at its steel plant which is one of the largest steel manufacturing units with the capacity to produce 0.5 million ton Steel per annum.

Apart from the activities which Sangam has carried out to be where it currently is, the company firmly believes that its contribution to society plays an important role in its growth too.

Operating a 100 bed hospital for the needy.

Running Engineering and Management College with world-class infrastructure facilities.

FINANCIALS:

Sales have risen sharply from 693 cr to 1424 cr and NP from 5.37 cr to 17.08 during 2008 to 2012. Net profit Margin came to around 1.19 from 0.76 while ROCE moved up from 4.93 to 10.94.D/E ratio came down from 3.77 to 2.58 which indicates the managements determination to bring down debt.The B V stands at 64 and dividend paid was 10%.
Interesting point to mention here is the NP for the first half year of 2013, which is sizeable at 28 cr against 17 cr for the full year 2012.
The stock may be considered for buying at CMP of 53.75