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Sri Nachammai Cotton Mills Limited (521234) Fair Value & Analysis

Industrial Goods · IN · Market cap ₹53.4M

SN Sri Nachammai Cotton Mills Limited 521234 · BSE
Price₹25.13
Fair Value₹19.14
Upside-23.8%
Quality31/100
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Weak Growth
Loss-making · -2.0% net margin
High debt · generates free cash flow
Trails peers (4/12)
Narrow moat 9/100
Evidence: Medium Range ₹14.29 – ₹28.57 Share as image

Fair value as of: Aug 13, 2026

From 3 valuation models · updated 5 days ago

Below-average quality, and screening another 24% overvalued on our models.

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What matters now

  • Weak quality (31/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • A fairly wide model range (₹14.29 to ₹28.57) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

₹66.95 ₹10.91 Fair Value ₹19.14 Dec 2020 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range ₹10.91 – ₹66.95 · fair‑value band ₹14.29 – ₹28.57 · the ₹25.13 price screens above the ₹19.14 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Sri Nachammai Cotton Mills Limited (521234) currently trades at ₹25.13, while our model-based Fair Value estimate is ₹19.14, implying the stock looks roughly 23.8% overvalued today. The Quality Score stands at 31/100 (below-average quality), in the Industrial Goods sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, Sri Nachammai Cotton Mills Limited generated revenue of ₹1.4B at a net margin of -2.0%. Revenue grew 48.1% year over year. It earns a return on equity of -13.7%. Net debt stands at ₹489M. Fundamentals as of Aug 13, 2026

Our scenario range runs from ₹14.29 (bear case) to ₹28.57 (bull case); at ₹25.13, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 37% below its 52-week high and 1% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrial Goods peers we cover trades at -27% fair-value upside, at -24%, 521234 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Gordon GGM ₹0.2700 ₹0.2800 ₹0.3100 70
DDM Multi-Stage ₹0.2700 ₹0.3100 ₹0.3600 61
NCAV (Graham) ₹14.29 ₹19.14 ₹28.57 50
All 3 models by family
Dividend Discount
Gordon GGM ₹0.2700 ₹0.2800 ₹0.3100 70
DDM Multi-Stage ₹0.2700 ₹0.3100 ₹0.3600 61
Asset-Based
NCAV (Graham) ₹14.29 ₹19.14 ₹28.57 50

Widest divergence: Asset-Based (₹19.14) versus Dividend Discount (₹0.2800). Highest evidence: Gordon GGM (70).

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Key figures & financial health

Revenue (TTM) ₹1.4B
Revenue growth (YoY) +48.1%
Net margin -2.0%
Return on equity -13.7%
Free cash flow ₹3.8M FY2026
P/E ratio 13.2 as of Jul 4, 2026
More key figures
Operating margin 0.9%
EPS (TTM) ₹0.7890
Net debt ₹489M FY2026

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 31/100

Of which business quality 31 · Market factors (momentum, volatility) 19

Profitability 13
Margins and returns on capital today
Quality Growth 20
Are margins and returns improving?
Cashflow 31
Earnings quality: real cash, not paper profit
Fin. Strength 1
Balance sheet, leverage, solvency risk
Investment 67
Disciplined investing over empire-building
Low Volatility 40
Calm price path (market factor)
Momentum 15
Price trend over the last 3–12 months (market factor)
52W Momentum 3
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Sri Nachammai Cotton Mills Limited engages in the textiles business in India. It manufactures and sells combed, carded, and compact cotton hosiery and hank yarns that are used by manufacturers to convert into fabrics or garments for dyeing and export. The company was incorporated in 1980 and is based in Salem, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Sri Nachammai Cotton Mills Limited reported revenue of ₹645M in FY2026 versus ₹2.0B in FY2022, a compound −25.0%/yr. Reported net income was −₹38.0M in FY2026.

Growth Quality 12/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2026)
₹645M
Latest YoY
−6.7%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−18.0%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−16.4%
Avg. growth/yr (12Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−8.3%
Revenue −25.0%/yr
FY22 ₹2.0B
FY23 ₹1.2B
FY24 ₹664M
FY25 ₹692M
FY26 ₹645M
Net income
FY22 ₹58.9M
FY23 −₹33.3M
FY24 −₹47.9M
FY25 −₹32.1M
FY26 −₹38.0M

521234 screens 24% overvalued. Compare with Raymond Limited →

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Cite: Fair Value Calculator (2026). "Sri Nachammai Cotton Mills Limited Fair Value". https://www.fairvalue-calculator.com/stock/521234

Peer Group

Industrial Goods · 22 stocks

How this stock ranks against its sector: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median. (Industry “Textile Industrial” was too small, so the broader sector is used.)

Quality Score 31 · Bottom 25%
Fair Value upside −24% · Above median
Return on assets 1% · Above median
Net margin (TTM) -2% · Bottom 25%
Operating margin (TTM) 1% · Below median
Revenue growth 48% · Top 25%
Dividend yield (TTM) 0.3% · Above median
Debt / equity 2.10× · Higher than 75% of peers

Valuation Multiples vs Industrial Goods median · lower = cheaper

P/E (TTM) 13.2× · Pricier than 75% of peers
P/FCF 0.1× · Pricier than median
EV/EBITDA 9.2× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 2 · sector 0
FUTURE 100 · sector 0
PAST 0 · sector 0
HEALTH 0 · sector 98
DIVIDEND 6 · sector 2

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Textile Industrial stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Raymond Limited 500330 ₹640.90 ₹584.87 -9%
Arvind Limited 500101 ₹564.50 ₹203.30 -64%
Century Enka Limited 500280 ₹582.40 ₹422.06 -28%
Sat Industries Limited 511076 ₹125.00 ₹70.49 -44%
Banswara Syntex Limited 503722 ₹123.50 ₹208.05 +68%
Mafatlal Industries Limited 500264 ₹126.60 ₹74.12 -41%
Donear Industries Limited 512519 ₹88.21 ₹109.50 +24%
Loyal Textile Mills Limited 514036 ₹234.45 ₹171.90 -27%
Pasupati Acrylon Limited 500456 ₹61.16 ₹66.79 +9%
Shri Dinesh Mills Limited 503804 ₹345.00 ₹226.37 -34%

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Frequently asked questions

Is Sri Nachammai Cotton Mills Limited (521234) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ₹19.14 versus a price of ₹25.13, about −24% (overvalued).
What is the fair value of 521234?
Our model-based fair value for Sri Nachammai Cotton Mills Limited is ₹19.14 (as of Aug 13, 2026), built from audited fundamentals. The current price is ₹25.13.
What is the quality score of 521234?
Sri Nachammai Cotton Mills Limited has a Quality Score of 31/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Sri Nachammai Cotton Mills Limited (521234)?
Sri Nachammai Cotton Mills Limited reported trailing-twelve-month revenue of about ₹1.4B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 521234?
The net profit margin of Sri Nachammai Cotton Mills Limited is about -2.0%, meaning it is currently running at a net loss. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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