Nitin Spinners Ltd

Nitin Spinners Ltd
Textiles
FV – Rs 10; 52wks H/L – 107.25/48.9; TTQ – 2713; CMP (June 8, 2016; 11.55 am) – Rs 65.25;
Market Cap – Rs 299 Crs

Standalone Financials and Valuations for FY16 (Amt in Rs Crs unless specified)


Equity Capital
Net worth
Long Term
Debt
Total
Sales		 PAT
BV
(Rs)
EPS (Rs)
P/E
Industry
P/E
P/BV
Promoter’s
Stake
Beta
45.83 205.65 241 768 44.16 45 9.64 6.77 33.02 1.45 64.21 0.94


Valuation Parameters

  1. EV/EBITDA: 3.9
  2. EV/Share: Rs 118
  3. EV/Sale: 0.7
  4. Market Cap/ Sale: 0.39
  5. Debt to Equity: 1.17
  6. RoE: 21.47%

Recent Updates

Bulk Deals

Date Client Transaction Quantity Traded Price (Rs)
23-Jun-2015 Reliance Wealth Management Limited BUY 458964 73.04

 

CDR Exit

  • Nitin Spinners exited the Corporate Debt Restructuring (CDR) in June 2013.
  • It completed mechanism for its loan facilities by paying the recompense amount as approved by CDR Core Group.
  • The company has made the payment of the recompense amount to the lenders.
  • The company resorted to CDR mechanism in March 2009 due to forex losses and adverse business scenario in 2007-08.
  • The company achieved turnaround in very short period of three and half years and opted for voluntarily exit from CDR mechanism.
  • This was one of the shortest turnaround in the history of CDR mechanism.

Overview:

  • The Company manufactures cotton yarn and cotton knitted fabric.
  • It was incorporated on October 15, 1992 as a private limited company with the name Nitin Spinner Pvt Ltd. In the year 1993, the company set up their first unit at Hamirgarh, Bhilwara (Rajasthan) for manufacturing coarse cotton yarns. It had its IPO in 2006 at Rs 21 per share.
  • The current production capacity of company is 37800 tpa of cotton yarn and 8600 tpa of knitted fabrics.
  • The Company manufactures a range of yarns, including open end yarns, multifold open end yarns, ring spun combed yarns, multifold ring spun yarns, compact yarns, fancy slub yarns, core spun yarns, S and Z twist yarns, dyeable cheese cones and organic cotton yarns and blends.
  • The Company manufactures knitted fabrics, as well as fabrics with Elastane. The Company offers fabrics in greige form in tubular and open width. Its product range in knitted fabrics include single jersey, pique structures, and interlock structures, rib structures and three thread fleece.
  • The Company’s products are applicable in manufacturing products, such as apparel and garments, under garments, terry towels, woven fabrics, home furnishings, carpets, denim, industrial textiles, medical textiles and socks, among others.
  • It exports to more than 50 countries ~ EU, USA and Canada, Latin America, Middle East, China, North Africa etc.
  • Company’s expansion project for installation of 72960 spindles involving capital outlay of Rs 290 Crs is being carried out as per schedule.

Clientele: Arvind, Raymonds, Decor, Alok, Ashima, Bhaskar, Nandan Exim, Creative Textiles, Shri Lakshmi Cotsyn, VHM, Pratibha, Maral, RSWM

 

Management:

  • Mr R L Nolkha is the CMD
  • Mr Dinesh Nolkha is the MD
Major Non-Promoters % Stake
Dolly Khanna 1.22

 

            Standalone Financial Trends ~ Amt in Rs Crs

Particulars FY 16 FY 15 FY 14 FY 13 FY 12 FY 11
Equity Paid Up 45.83 45.83 45.83 45.83 42.83 45.83
Networth 206 167 132 101 87 86
Long Term Debt 241 294 131 162 184 209
Total Sales 768 617 489 446 428 411
PAT 44 41 35 14 0* 7
EPS (Rs) 9.64 8.94 7.59 3.08 0.07 1.47
Book Value (Rs) 45 36 29 22 20 19
Debt to Equity 1.17 1.76 0.99 1.61 2.12 2.41
PAT Margin % 5.75 6.64 7.12 3.17 0.07 1.64

 

  • PAT grew at a CAGR of 35.85% while Total Revenue grew at a CAGR OF 10.98% over the past six years.
  • Net worth grew at a CAGR of 15.67% over the same period.
  • *Note that ~ In FY12 profits were low because the Company had suffered heavy losses during first half of the then financial year on account of higher carrying cost of cotton and also due to steep fall in yarn prices.