Sangam Limited Stock Research

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Sangam Limited Detail

Sangam Limited is in portfolio of Satpal Khattar. He is one of the top investors in India. The company belongs to Conglomerate sector. 

As per the Company website it has forayed into three business verticals. The three business verticals are

  • Textiles
    • It  is the largest producer of PV dyed yarn in Asia at single location.
    • It  is ranked amongst world’s largest PV Dyed yarn industry.
    • The diversified industries include Spinning, Weaving, Processing, Denim Manufacturing, Knitting & Seamless Garments.
    • It has started Sangam Lifestyle ventures for its retail business.
    • Apparel business focuses on Intimate Wear, Active Wear, Yoga Wear, Shape Wear and Leisure Wear for women
  • Steel
    • It has capacity to produce 0.5 million ton Steel per annum.
    • Re enforcement bars (Sangam 500 TMX TMT)
  • Infrastructure
    • Sangam Lifespaces is the real estate arm of Sangam Group.
    • Some notable projects from the Company are The Luxor Goregoan West, Nero Bandra East. Most of the projects from the Company are in Mumbai region. It has land bank of 10 Lakh square feet
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I have shared long term price performance chart of the Company below.As per Dow theory of technical analysis price performance over a period of time reflects Company state.

Sangam Limited Stock Performance

The stock has fluctuating graph.Most of the time the stock traded below 100 INR price. The only time it touched 100 mark was in year 2007. After 2014 it has made most of the bull run and stock touched 300 price point.

But recent correction forced it below 100 mark. The Company started trading near 50 mark.This is classic example why we should not invest in a stock which rose due to bullish sentiment or some news. You may think you missed out the rally but many a times you will end up losing money just in this case.

Last time it touched 100 was in year 2007 and it took 8 years to touch that price point. Most of the investors will sell of their holding if Company is not performing for 3 years or so. So people buying at top will lose money in the counter.

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Sangam Limited My Opinion

Sangam Limited is an Conglomerate Company. It is mainly textile Company which has ventured into Steel and Real Estate business areas. Textile is the main revenue source for the Company.

I really do not understand need of venturing into Steel and Real Estate play. The have started focusing on Apparel business which is more related to Textile business where they have experience.

Steel and Real Estate are very different sector from Textiles and wasting energy and money in those ventures are beyond my understanding. I do not like Small Companies trying too many things which are not related to their core business. This shows they are trying hard to create alternate revenue source.

It would have been great if they could have focused on increasing retail and online presence offering more products in Apparel division instead of Steel and Real Estate. I have not invested in any of these three sectors so will not be tracking this Company.

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In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.

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