Nitin spinners ltd. is engaged in the business of manufacturing of cotton yarn and knitted fabric. the range of yarn that the company manufactures includes open end yarns from ne 5/1 to ne 24/1 (nm 8/1 to nm 40/1), multifold open end yarns, ring spun combed yarns from ne 16/1 to ne 50/1 ( nm 27/1 to nm 85/1), multifold ring spun yarns, compact yarns, fancy slub yarns, core spun yarns, s & z twist yarns, dyeable cheese cones-soft package, 100% organic cotton yarns and blends and bci/tbc certified yarns. the company manufactures knitted fabrics, as well as fabrics with elastane. the range of knitted fabrics includes single jersey, pique structures, interlock structures, rib structures and three thread fleece. it has 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.
|Market Cap: 179.65 CroresCurrent Price: 39.20Book Value: 34.96|
|Stock P/E: 4.82Dividend Yield: 1.59%Stock is 10.00 paid up|
|Listed on BSE & NSE Company website52 Week High/Low: 41.35 / 15.55|
return on capital employed 5Years: 15.02% ROCE3yr avg: 18.70%
Return on equity 5years growth: None% NPM last year: 7.12%
Return on equity preceding year: 15.09% Return on equity: 29.94%
NET PROFIT MARGIN: 0.07% PEG Ratio: 0.05 Price to Sales: 0.33
|the company has equity base of 45.83 crore backed by 85.72
crore reserves. total assets of the company
valued at rs 275.72 crore & total debt figure stands at rs 144.17 crore. long term debt-equity ratio stands at 0.99.
promoter holds 63.78% stake in company without any pledge shares. recently company has paid dividend for the first time.
nitin spinners capacity expansion has been completed in february instead of ahead time stipulated
in march 31. it will reflect in march quarter results. 72480 spindles,18 knitting machines has been installed before 9 february 2015.
the project has been completed at a cost of rs. 281 crores against project cost of rs. 286 crores .
current annual sales are rs 450-500 crore & annual net profit rs 35-36 crore, with this capacity addition
we can expect projected annual sales of rs 600-650 crore for year 2015-16 &
projected annual net profit of rs 45-50 crore for year 2015-16. with this projection we can expect
projected eps of 12 for 2015-16.currently nitin spinners is trading at below 5 pe,
even if we apply very conservative pe multiple of 7x of its projected eps of 12
we can easily arrive at a price target of rs 84.
holding some quantity of nitin spinners.