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INVESTMENT INSIGHTS

Check Before You Invest : Salona Cotspin Ltd

BSE: 590056 NSE: SALONA ISIN: INE498E01010
  |   Sector:  Textiles & Apparels   |   Industry:  Textile - Spinning

Snapshot

Q.1 Which industry/sub-sector does Salona Cotspin Ltd belong to?
Salona Cotspin Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile - Spinning segment.
Q.2 Is Salona Cotspin Ltd a good quality company?
Salona Cotspin Ltd is a weak quality company, based on a inconsistent 10 year financial track record.
Q.3 Is Salona Cotspin Ltd undervalued or overvalued?
Salona Cotspin Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Salona Cotspin Ltd a good buy now?
Salona Cotspin 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 Salona Cotspin Ltd?
Salona Cotspin Ltd revenue growth is -8.3% for FY-2025 , which is below its 5 year CAGR of 40.3% , indicating slower growth.
Q.2 Gross Profit margin of Salona Cotspin Ltd?
Salona Cotspin Ltd Gross profit margin which is the profit after deduction of direct costs, is 2% for FY-2025 , which is below its 5 year median of 4.5% , indicating decreasing margins.
Q.3 Operating Profit Margin of Salona Cotspin Ltd?
Salona Cotspin Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 4.83% for FY-2025 , which is below its 5 year median of 5.8% indicating decreasing margins.
Q.4 Net Profit Margin of Salona Cotspin Ltd?
Salona Cotspin Ltd Net Profit Margin is 0.47% for FY-2025 , is below with its 5 year median of 2.69%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 2 4.5
Operating Profit Margin 4.83 5.8
Net Profit Margin 0.47 2.69
Q.5 Return on Asset of Salona Cotspin Ltd?
Salona Cotspin Ltd Return on Asset is 0.87%, which is below its 5 year historical median of 5.6%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Salona Cotspin Ltd?
Salona Cotspin Ltd Return on equity is 3.86% for FY-2025 , which is below its historical median of 17.72%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Salona Cotspin Ltd?
Salona Cotspin Ltd Return on capital employed is 7.41% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Salona Cotspin Ltd?
Salona Cotspin Ltd Cash conversion cycle is 99 days, above its historical median of 96 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.84 2.08
ROE 3.86 17.72
ROCE 7.41 13.07
Cash Conversion Cycle 99 days 96 days
Q.9 Debt to Equity ratio of Salona Cotspin Ltd?
Salona Cotspin Ltd Debt-to-Equity ratio is 2.89 , which is above with the industry average of 0.36 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Salona Cotspin Ltd?
Salona Cotspin Ltd Debt to cash flow from operations is 3.74 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Salona Cotspin Ltd?
Promoters hold 68.42% of the Salona Cotspin Ltd, with 0.28% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Salona Cotspin Ltd vs industry peers?
Salona Cotspin Ltd revenue CAGR is 40.29% , compared to the industry median CAGR of 1.47% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 662.2 118.3
Gross Profit 13.2 3
Operating Profit 32 4.4
Net Profit 3 0.3
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.84 0.94
ROE 3.86 -
ROCE 7.41 5.99
Cash Conversion Cycle (days) 99.03 61

Valuation & price assessment

Q.1 Stock return of Salona Cotspin Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 25% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 25% 24% 2.6% 9.6%
Q.3 Valuation ratios of Salona Cotspin Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings - 10.31 19.51
Price to Book 1.75 2.59 0.73
Price to Sales 0.24 0.32 0.34
EV to EBITDA 11.81 7.18 7.32

Check more companies

1. Trident
2. Sanathan Textiles
3. Nitin Spinners
4. Filatex India
5. Sumeet Inds
6. Pashupati Cotspin
7. Jaybharat Textiles
8. Nahar Spinning Mills
9. GHCL Textiles
10. Ambika Cotton Mills
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