.

follow-on-google-news

On Tuesday, the share price of the penny stock rose 2.5 percent to its intraday high of Rs 50.80 from its previous close of Rs 49.55 after the company announced a sale of equity shareholding to reduce the company’s borrowings. 

According to the filling of Bannari Amman Spinning Mills Ltd, the board of directors of the company has approved proposals to sell its equity shareholding in Young Brand Apparel Private Limited, its garment unit located at Palladam, Tamil Nadu, and 6.43 acres of land with the building situated at SIPCOT, Perundurai. 

The company also plans to raise funds by issuing equity shares or other instruments and to explore alternative areas of business up to Rs.200 Crores, such as healthcare services. The funds raised will be used to reduce the company’s borrowings. 

According to the Bannari Amman Spinning Mills Limited report, the net revenue decreased by 18 percent year over year, from Rs 253.43 crore in Q2FY23 to Rs 299.13 crore in Q2FY24. Their revenue fell by 45 percent sequentially from Rs 205.73 crore in Q1FY24 to the current levels. 

In addition, the company has reduced its net loss by 72 percent year over year, from a net loss of Rs 15.51 crores in Q2FY23 to a net loss of Rs 4.30 crores in Q2FY24. Their net loss decreased by 29 percent on a quarterly basis from a net loss of Rs 6.12 crore in Q1FY24 to the current levels. 

The stock price of the company has increased by 13 percent in the last six months and 8 percent in the last month. The company has a good current ratio of 1.32, and the stock is trading at 0.78 times its book value, indicating that it is available for a lower price. 

Bannari Amman Spinning Mills Ltd is a penny stock with a market capitalization of Rs 322 crores. The promoters own 55.3 percent of the company, the general public owns 44.55 percent, and foreign institutional investors own 0.15 percent. 

Bannari Amman Spinning Mills Limited, founded in 1989, is an integrated textile company that produces cotton yarn, fabric, and home textile products, as well as generates wind power. The company produces sugar, industrial/potable alcohol, bio-compost, and granite products, and generates power through windmills and co-generation. 

Written by Sriram KV

×