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
- EV/EBITDA: 3.9
- EV/Share: Rs 118
- EV/Sale: 0.7
- Market Cap/ Sale: 0.39
- Debt to Equity: 1.17
- RoE: 21.47%
Recent Updates
- The Company plans to repay Rs 50 Crs debt in FY17, but will also be adding another Rs 215 Crs for new expansion project, which will be under Technology Up-gradation Fund (TUF) as well as the state investment subsidy. Expect margins to remain unchanged in FY17: Nitin Spinners
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.
