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Nitin Spinners Ltd. Stock Analysis

Small Cap
Evaluated by 823 users | BSE: 532698 | NSE: NITINSPIN |
Textile - Spinning
Nitin Spinners Ltd was incorporated as a private limited company on October 15, 1992 under the Companies Act 1956 in the state of Rajasthan having the name ‘Nitin Spinners Private Limited’. Subsequently the company was converted into a public limited company on November 15, 1994...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 9.61%4.23%13.7%15.3%13.46%12.19%10.49%8.6%7.65%4.34%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 4114284464886167679331,1451,2431,438
Y-o-Y Gr. Rt.-4.2%4.1%9.5%26.2%24.4%21.7%22.7%8.5%15.7%
Adjusted EPS (Rs.) 4.740.075.447.69.079.6212.519.4211.434.19
Y-o-Y Gr. Rt.--98.5%7671.4%39.7%19.3%6.1%30%-24.7%21.3%-63.3%
Book Value per Share (Rs.) 18.8418.9121.9928.736.4444.8757.6675.0385.8387.88
Adjusted Net Profit 21.70.324.934.841.644.157.352.364.323.5
Net Op. Cash Flow (Rs. Cr.) 45.464.288.986.644.510053.666.310498.2
Debt to Cash Flow from Ops 6.263.882.322.038.53.5110.616.788.310.6
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Nitin Spinners Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 14.9%18.5%15.5%15.7%
Adjusted EPS -1.4%-14.3%-30.6%-63.3%
Book Value per Share 18.719.315.12.4
Share Price 29.5% -2.7% -18.3% 18.4%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 26.160.3526.5929.9827.8423.6724.415.3714.294.82
Operating Profit Margin (%) 18.4710.5219.719.2516.2317.8714.313.5314.3511.81
Net Profit Margin (%) 5.280.075.597.136.745.756.144.575.171.64
Debt to Equity 3.292.872.051.342.271.712.151.081.782.11
Working Capital Days 1021051011029910299100117120
Cash Conversion Cycle 87878070616366748487
Entity Percentage Holding
Promoters 56.04%
Institutions 14.66%
Non-Institutions 29.30%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Nitin Spinners Ltd.'s performance infers:

Nitin Spinners Ltd. earnings have declined by -14.3%, whereas share price has depreciated -2.7% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Nitin Spinners Ltd. share prices over the last 10 years. Here is what we found out:

Nitin Spinners Ltd. share price has depreciated 15.7% annually over the past ten years.

Nitin Spinners Ltd was incorporated as a private limited company on October 15, 1992 under the Companies Act 1956 in the state of Rajasthan having the name ‘Nitin Spinners Private Limited’. Subsequently the company was converted into a public limited company on November 15, 1994 and the name was changed to Nitin Spinners Limited. The company was promoted by R. L. Nolkha Dinesh Nolkha and Nitin Nolakha.

Starting with one open-end facility, the company has grown into one of the

Nitin Spinners Ltd was incorporated as a private limited company on October 15, 1992 under the Companies Act 1956 in the state of Rajasthan having the name ‘Nitin Spinners Private Limited’. Subsequently the company was converted into a public limited company on November 15, 1994 and the name was changed to Nitin Spinners Limited. The company was promoted by R. L. Nolkha Dinesh Nolkha and Nitin Nolakha.

Starting with one open-end facility, the company has grown into one of the largest producers of 100% cotton yarn and fabrics in India. It possesses one of the best pool of skilled workforce in the textile Industry.

Nitin at present has an installed capacity of 27216 spindles, 1872 rotors and 15 knitting machines. Nitin is situated on N.H.No.79, Hamirgarh, 16 KM away from Bhilwara the textile city of Rajasthan in India. Its products are meant for apparel & garment industry, terry towels, knitted fabrics, denims, woven fabrics, furnishings, carpets, industrial fabrics, medical fabric etc. The company has tied up for long term yarn supplies with denim, terry towel, knitting and other Industrial fabrics manufacturers in India & abroad.

Its diverse competencies enable it to address the most challenging business realities effectively. This rich people capital has been manifested in its unmatched reputation, its wide product variety, its export exposure and above-the-market realizations.

The company has been an innovator in textile field and conducted its business with the purpose of growing into a notable organization. Today, despite in the midst of highly fierce and competitive textile markets, Nitin Spinners Ltd. is still poised to serve both local and international markets with a pledge of providing great satisfaction to its  customers. In an effort to finalize this vertical plan, there are plans underway to enter the apparels sector to complete the production chain from yarn to ready-to-wear garments.

Today, with the combined installed capacity of nearly 80000 spindles & 4000 rotors, manufacturing 25000 tons of yarn and threads per annum, the company has carved a niche for itself on the textile map of the country.

Its Fabric Unit has also shown an upward growth trend since its inception. Today, with the production & supply of 4000 tons of fabric per annum, its top quality fabric is already making its presence felt in the global textile industry.

The company is exporting cotton yarns and knitted fabrics to countries like Australia, Bahrain, China, Colombia, Egypt, Israel, Italy, Korea, Mauritius, Russia, Poland, U.K., U.S.A. and others. It supply to customers, who are in fields like apparel and garment industry, industrial fabrics, furnishing fabrics, towels, denims etc. At present, its exports are restricted to around 18-20 countries only, which leaves more scope for the company to develop new markets and to increase its presence accordingly. Further, with the phasing out of quota restrictions, the company is expecting to achieve high growth rate in the global markets in the coming years.

Product range of the company includes:

Yarns

  • Open End yarns from Ne 5/1 to Ne 30/1 ( Nm 8/1 to Nm 50/1 ) 
  • Multifold Open End Yarns
  • Ring Spun Combed Yarns from Ne 20/1 to Ne 50/1 ( Nm 34/1 to Nm 85/1) 
  • Multifold Ring Spun Yarns
  • 'S' & 'Z' Twist Yarns
  • Dyeable cheese cones - Soft package
  • 100% Organic Cotton Yarns and Blends

Knitted Fabrics

  • Single Jersey 
  •  Pique structures 
  •  Interlock structures
  •  Rib structures
  •  Three Thread Fleece 

Woven Fabrics

Achievements/ recognition:

ISO 9001: 2000 accreted

Certificates from:

  • Organic Exchange
  • Export House
  • Bureau of Indian Standards
  • Oeko-Tex Standard
  • GOTS/Sustainable
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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