Bannari Amman Spinning Mills Q4 FY21 result: Check why Anil Singhvi thinks stocks may perform EXTRAORDINARILY

Zee Business Managing Editor and Market Guru Anil Singhvi has highlighted key details to watch out for textile manufacturer Bannari Amman Spinning Mills, ahead of its results on May 31, 2021. Kushal Gupta, Senior Research Analyst at Zee Business, said that Bannari Amman Spinning Mills is expected to show extraordinary numbers this time.  

Talking about the company’s performance in detail, Gupta said that the textile space is continuous on our radar. Competitors Nitin Spinners and Siyaram Silk Mills declared their numbers recently, and now Bannari Amman Spinning Mills numbers are expected on Monday, May 31. And with the turnaround stories, you will have to keep a focus on Bannari Amman, he added.

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Gupta further added that the other two competitors -- Nitin Spinners and Siyaram Silk Mills -- have performed well. If you will see the income sharing of Bannari Amman, then you will notice that 72-73 per cent comes from yarn and fibers, whereas for Nitin Spinners, it is 90 per cent. Bannari Amman’s Income is expected Rs 288 crore (YoY) in Q4 FY21, compared to Rs 278 crore (YoY) in Q4 FY20. So, Bannari Amman and Nitin Spinners are almost on similar lines.  

He added that the operational performance is the biggest turnaround for the company. “Income will remain flat as per the yearly performance. But the turnaround will be on working profit, and you have to keep an eye on this,” Gupta said. Working profit is expected Rs 28 crore (YoY) in Q4 FY21, compared to Rs 10 crore (YoY) in Q4 FY20. So, you can see good growth in working profit here.  

Talking about the company's margins, he said that the way Nitin Spinners has gained 6-6.5 per cent margins yearly. Bannari Amman is also expecting a similar gain of 9.7 per cent (YoY) in Q4 FY21, compared to 3.6 per cent (YoY) in Q4 FY20. Most interestingly, the company made a loss of Rs 0.1 crore (YoY) in Q4 FY20, but this time, it is expected to record a clear profit of Rs 12 crore (YoY) in Q4 FY21, Gupta asserted.  

Talking about the upcoming results of the company, the Market Guru said that this time you will see an extraordinary result of this company! “The important thing is these stocks are already in action before their results and will continue to perform better after the announcement,” Singhvi added. Quality-wise and fundamentally, Bannari Amman Spinning Mills is a strong stock and is expected to perform extraordinarily.