Check Before You Invest : Nitin Spinners Ltd

Snapshot

Q.1 Which industry/sub-sector does Nitin Spinners Ltd belong to?

Nitin Spinners Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile - Spinning segment.

Q.2 Is Nitin Spinners Ltd a good quality company?

Nitin Spinners Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Nitin Spinners Ltd undervalued or overvalued?

Nitin Spinners Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Nitin Spinners Ltd a good buy now?

Nitin Spinners Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Nitin Spinners Ltd?

Nitin Spinners Ltd revenue growth is 13.8% for FY-2025, which is below its 5-year CAGR of 18.11%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Nitin Spinners Ltd?

Nitin Spinners Ltd Return on capital employed is 13.19% for FY-2025, which is above its 5-year historical median of 11.95%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Nitin Spinners Ltd?

Nitin Spinners Ltd Return on Asset is 6.44%, which is in line with its 5-year historical median of 6.44%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Nitin Spinners Ltd?

Nitin Spinners Ltd Return on equity is 14.28% for FY-2025, which is in line with its 5-year historical median of 14.28%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Nitin Spinners Ltd?

Nitin Spinners Ltd Cash conversion cycle is 96 days, in line with its 5-year historical median of 92 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.21	1.19
ROE	14.28	14.28
ROCE	13.19	11.95
Cash Conversion Cycle	96 days	92 days

Q.6 Gross Profit margin of Nitin Spinners Ltd?

Nitin Spinners Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.6% for FY-2025, which is in line with its 5-year median of 11.6%, indicating stable margins.

Q.7 Operating Profit Margin of Nitin Spinners Ltd?

Nitin Spinners Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.26% for FY-2025, which is in line with its 5-year median of 14.26% indicating stable margins.

Q.8 Net Profit Margin of Nitin Spinners Ltd?

Nitin Spinners Ltd Net Profit Margin is 5.31% for FY-2025, is in line with with its 5-year median of 5.31%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	11.6	11.6
Operating Profit Margin	14.26	14.26
Net Profit Margin	5.31	5.31

Q.9 Debt to Equity ratio of Nitin Spinners Ltd?

Nitin Spinners Ltd Debt-to-Equity ratio is 0.89, which is above with the industry average of 0.4, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Nitin Spinners Ltd?

Nitin Spinners Ltd Debt to cash flow from operations is 3.79, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Nitin Spinners Ltd?

Promoters hold 56.71% of the Nitin Spinners Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Nitin Spinners Ltd vs industry peers?

Nitin Spinners Ltd revenue CAGR is 18.11%, compared to the industry median CAGR of 2.18%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	13.8	2.2
Gross Profit Growth	30.1	NAN
Operating Profit Growth	24.9	-2.1
Net Profit Growth	32.6	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.21	1
ROE	14.28	3.73
ROCE	13.19	6.18
Cash Conversion Cycle (days)	96.09	72

Valuation & price assessment

Q.1 Stock return of Nitin Spinners Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 20.7% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	20.7%	39.4%	21.8%	27.3%

Q.3 Valuation ratios of Nitin Spinners Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	15.57	10.68	9.40
Price to Book	1.83	1.59	0.72
Price to Sales	0.81	0.62	0.40
EV to EBITDA	7.84	6.49	7.20

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