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Nitin Spinners Ltd share Price Today

Company details

334.70
348.65
227.00
394.60
6M Return -4.01%
1Y Return 25.49%
Mkt Cap.(Cr) 1,898.55
Volume 175,862
Div Yield 0.74%
OI
-
OI Chg %
-
Volume 175,862

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Technical Outlook
    Textile companies have been out of limelight over past fifteen months and undergone decent price/time wise correction after sharp rally in CY20-21, while discounting many headwinds in the process. Share price of Nitin spinners has given a breakout from Bullish flag formation on Monday, indicating continuation of uptrend backed by above average volumes  
     
    Structurally, share price had undergone strong base in the ₹190-240 range in the vicinity of long term support of 52-week EMA. In the process it retraced CY21 rally by just 60% over 15 month period, a sign of inherent strength in long term trend
     
    We expect share price to head towards ₹ 300 which is 80% retracement of Feb – June 2022 correction (₹ 345-181) over next few months
     
    Weey MACD is seen sustaining in positive zone while diverging from its 9-period average indicating momentum from medium term perspective
Fundamental Outlook
    NSL  has invested in capacity building over the last decade, more than quadrupled its spinning capacities and forward integrated with the addition of fabric capacities. NSL currently has an installed capacity of 3,07,344 spindles and 3,488 rotors, producing 75,000 tons of yarn per annum. It also has an installed capacity of 63 knitting machines, producing 9000 tons of knitted fabrics per annum and 168 looms and dyeing, printing and finishing capacities to make ~300 lakh meter of fabrics per annum. The company has been able to sweat its assets effectively and has maintained average utilization of 85%+. In a bid to capture long term growth opportunities and further strengthen the product range, NSL has embarked on a brownfield expansion and outlined capex worth ₹ 900 crore to enhance capacities across segments. It is enhancing yarn capacity by 47% (from 75000 to 110000 tonnes), knitted fabric by 22% (from 9000 to 11000 tonnes) and woven fabric by 33% (from 30 to 40 million meters).
     
    Nitin Spinners reported an improvement in operational performance on a sequential basis in Q4FY23. Revenue grew 22% QoQ to ₹ 654.8 crore, while PAT grew 22% QoQ to ₹ 38.5 crore. Nitin Spinners’ cotton yarn utilisation has improved to 93% in Q4FY23 vs. 80% in Q3FY23. The company expects FY24 to be better than FY23 owing to improved demand and higher focus on value added products. Cotton yarn spreads have improved from ₹ 94 per kg in Q3FY23 to ₹ 104 in Q4FY23. Considering the gradual improvement in overall scenario, the spreads could improve from these levels,. which should provide positive momentum to margins in the ensuing quarters
     
    Capacity expansion across segments to drive revenue growth. NSL’s planned capex of ₹ 900+ crore can generate incremental revenue of ~₹ 1100 crore (peak revenue of ₹ 3500 crore) . We expect NSL to generate superior RoCE of ~15% in FY25E (vs. average RoCE: 10-12%). We model revenue, earnings CAGR of 15%, 21%, respectively, in FY23-25E. 

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Nitin Spinners Ltd shares SWOT Analysis

Strengths (6)

  • Growth in Net Profit with increasing Profit Margin (QoQ)
  • Increasing Revenue every quarter for the past 3 quarters
  • Increasing profits every quarter for the past 3 quarters

Weakness (6)

  • Inefficient use of capital to generate profits - RoCE declining in the last 2 years
  • Inefficient use of shareholder funds - ROE declining in the last 2 years
  • Inefficient use of assets to generate profits - ROA declining in the last 2 years

Opportunity (0)

Data not found

Threats (2)

  • Increasing Trend in Non-Core Income
  • RSI indicating price weakness

Resistance and support

R1 346.0
R2 354.3
R3 360.0
Pivot

340.35

S1 332.1
S2 326.4
S3 318.1
EMA SMA
348.3
349.1
343.3
324.2
352.6
346.8
347.6
324.1
Delivery and volume
CLIENT NAME DEAL TYPE ACTION DATE AVG. PRICE QUANTITY EXCHANGE
GRAVITON RESEARCH CAPITAL LLP Bulk Purchase 2023-11-22 348.79 758504 NSE
GRAVITON RESEARCH CAPITAL LLP Bulk Sell 2023-11-22 349.41 758504 NSE
NK SECURITIES RESEARCH PRIVATE LIMITED Bulk Purchase 2021-08-03 272.93 313601 NSE
Name Category Shares
SUSHILA DEVI NOLKHA PROMOTER 13.87%
NITIN NOLAKHA PROMOTER 3.29%
RATAN LAL NOLKHA HUF PROMOTER 2.94%
DINESH NOLKHA PROMOTER 2.07%
DINESH NOLKHA HUF PROMOTER 0.64%
REDIAL TRADING AND INVESTMENT PRIVATE LIMITED PROMOTER 32%

OUR RESEARCH VIEW

Investment recommendation
Call Date
16 May 2023
Entry Price 254.00
Target Price 295.00
Duration
3 Month

FINANCIALS

Sales
Operating Profit
Profit after Tax
Equity
Reserves and Surplus
Debt
Sales
Operating Profit
Profit after Tax
PE
Debt/Equity
P BV

Nitin Spinners Ltd Stocks COMPARISON

Financials( in Cr) Nitin Spinners Ltd Grasim Industries Ltd Trident Ltd Raymond Ltd Welspun Living Ltd
Price 337.70 2,441.00 37.85 2,226.45 143.50
% Change -2.16 -0.52 -0.26 -0.78 -0.28
Mcap Cr 1,898.55 166,122.26 19,288.19 14,822.37 13,945.44
Revenue TTM Cr 2,406.71 117,627.08 6,332.26 8,214.72 8,093.76
Net Profit TTM Cr 164.81 11,078.20 441.61 536.96 202.51
PE TTM 14.42 26.62 54.87 8.83 20.48
1 Year Return 25.49 44.33 9.24 40.80 55.05
ROCE 11.92 9.04 11.89 21.11 5.91
ROE 17.31 14.35 10.99 23.24 5.03
INSIDER & INSTITUTIONAL ACTIVITY

Equity Capital: 1,028.90 Cr FV: 10.00

Period MF Net Purchase / (sold) FII Net
LAST 1M 29,248.28 -22,040.96
LAST 3M 102,638.29 -30,717.76
LAST 6M 167,920.74 50,623.85
LAST 12M 262,867.28 126,756.31

Nitin Spinners Ltd Information

Stock PE (TTM)
14.42
Promoter Holding
56.46%
Book Value
203.9007
ROCE
11.92%
ROE
17.31%
Description
  • Nitin Spinners Ltd was incorporated on 15th October, 1992 as a private limited Company with the name Nitin Spinners Pvt Ltd. On November 15, 1994, the company was converted into public limited company and the name was changed to Nitin Spinners Ltd. Nitin Spinners Ltd is an ISO 9001:2008 company and a Government of India recognized Export House, manufacturing 100% Cotton Yarns and Fabrics. The company engaged in the textiles business. They manufacture the range of yarn which include open end yarns, multifold open end yarns, ring spun combed yarns, multifold ring spun yarns, S and Z twist yarns, dyeable cheese cones and organic cotton yarns and blends. The company offers fabrics in greige form in tubular and open width. The range includes single jersey, pique structures, interlock structures, rib structures and three thread fleece. The company`s range of products are used to manufacture products, such as apparel and garments, under garments, terry towels, woven fabrics, home furnishings, carpets, denim, industrial textiles, medical textiles and socks. In the year 1993, the company set up their first unit at Hamirgarh, Bhilwara (Rajasthan) for manufacturing coarse cotton yarns. They installed two open-end spinning machines with 192 Rotors each aggregating 384 Rotors which were acquired from Elitex, Czechoslovakia under EPCG scheme. In November 1993, they commenced commercial production. In the year 1994, the company undertook first expansion project involving installation of one Autoconer Machine of 216 Rotors from Schlafhorst AG & Co., Germany and increased the number of Rotors to 600. During the year 1996-97, the company undertook their second expansion project involving acquisition of two Autoconer open-end spinning machines of 240 Rotors each from Schlafhorst AG & Co., Germany and thus increased their capacity to 1080 Rotors. In October 1997, the company commenced commercial production. In September 1998, the company installed two open end spinning machines of 384 Rotors from Elitex, Czechoslovakia with total capital outlay of Rs190 lakh. In January 1999, the company was converted into 100% Export Oriented Unit (EOU), which was awarded by Government of India. In April 2002, the company completed their fourth expansion project which involved installation of 14,112 spindles to produce combed and carded cotton yarns of 20s to 40s count. They also installed 7 knitting machines as a forward integration programme. In November 2004, the company completed their fifth expansion project of adding 13,104 spindles and 6 knitting machines. In February 2005, the company undertook their sixth expansion project which involved addition of 408 Rotors and 2 knitting machines. During the year 2005-06, the company came out with initial public issue to part finance their expansion project. The shares of the company were listed with the Bombay Stock Exchange Ltd and National Stock Exchange Ltd with effect from February 2, 2006. During the year 2006-07, the company implemented expansion project for installation of 50400 spindles, Knitting Machines and F.O. based Power Plant of 7.66 MW. The plant became operational with effect from September 29, 2006. In May 1, 2007, the company commenced the commercial production for expansion of Spinning & Knitting capacity. During the year 2007-08, the company implemented expansion project of Rotor Spinning capacity by addition of 2000 Rotors and in January 31, 2008, they commenced commercial production on expanded capacity. During the year 2008-09, the company commenced commercial production on the coal/ lignite based thermal power project with the installed capacity of 10.50 MW. The Company in 2014-15, expanded spinning and knitting capacity by installing 72,480 spindles and 19 knitting machines costing Rs 281 Cr. and the commercial production on expanded capacity commenced effective on 09.02.2015. After implementation of this, expansion project installed capacity of Company was increased to 150096 Spindles, 2936 Rotors and 49 Knitting Machines. The Company installed an Integrated Textile Unit at Bhanwaria Kalan in the District of Chittaurgarh, Rajasthan at an estimated project cost of Rs 675 Crores in 2017-18. In 2023, the Company has undertaken expansion projects at estimated project cost of Rs. 955 Crores at both the Plants located at Hamirgarh (Bhilwara District) and Bhanwaria Kalan (Chittorgarh District). The commercial production of Weaving & Knitting capacity was commenced w.e.f. 31.03.2023.

Registered Address

16-17 KM Stone, Chittor Highway Hamirgarh, Bhilwara, Rajasthan, 311025

Tel : 91-1482-286110-113
Email : investorrelations:nitinspinners.com; nsl:nitinspin
Website : http://www.nitinspinners.com
Registrar

Big Share Services Pvt Ltd

AGM Date (Month) : Sep
Face Value Equity Shares : 10
Market Lot Equity Shares : 1
BSE Code : 532698
NSE Code : NITINSPIN
Book Closure Date (Month) : Sep
BSE Group : B
ISIN : INE229H01012

FAQ’s on Nitin Spinners Ltd Shares

You can buy Nitin Spinners Ltd shares through a brokerage firm. ICICIdirect is a registered broker through which you can place orders to buy Nitin Spinners Ltd Share.

Company share prices and volatile and keep changing according to the market conditions. As of May 24, 2024 03:58 PM the closing price of Nitin Spinners Ltd was Rs.337.70.

Market capitalization or market cap is determined by multiplying the current market price of a company�s shares with the total number of shares outstanding. As of May 24, 2024 03:58 PM, the market cap of Nitin Spinners Ltd stood at Rs. 1,898.55.

The latest PE ratio of Nitin Spinners Ltd as of May 24, 2024 03:58 PM is 14.42

The latest PB ratio of Nitin Spinners Ltd as of May 24, 2024 03:58 PM is 0.60

The 52-week high of Nitin Spinners Ltd share price is Rs. 394.60 while the 52-week low is Rs. 227.00

According to analyst recommendations, Nitin Spinners Ltd Share has a "Buy" rating for the long term.

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