Mehabe score: 8 G Factor: 5 Piotski Score: 8 The stock has a rating . The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 5 and Piotski score of 8.
Description
Nitin Spinners is engaged in the business of Yarn and Cotton Knitted Fabric. Site:NITINSPIN Main Symbol:NITINSPIN
Stock trades at 314.0, above its 50dma 275.1. It also trades above its 200dma 209.94. The stock remains bullish on techicals
The 52 week high is at 328.75 and the 52week low is at 68.70
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is expected to give good quarter
Weakness
– has a low return on equity of 10.67% for last 3 years.
– might be capitalizing the interest cost
-Dividend payout has been low at 12.46% of profits over last 3 years
Competition
– The industry trades at a mean P/E of 10.7x. Arvind Ltd trades at the industry’s max P/E of 17.34x. NITINSPIN trades at a P/E of 8.14x
– Industry’s mean G-Factor is 4.1 while the mean Piotski score is 8.0. NITINSPIN has a G-Factor of 5 and Piotski scoreof 8.
– Average 1 month return for industry is 2.7%. The max 1- month return was given by Arvind Ltd: a return of 16.14 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 705.0 cr compared to Rs 467.0 cr for period ended Dec 2020, a rise of 51.0% .
vis-vis 74.0 for period ended Dec 2020 .
Operating Margins expanded 940.2 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 178.0 cr for period ended Dec 2021 and operating profit margin at 25.2 % for same period.
The EPS for quarter ended Dec 2021 is Rs 16.59 compared to Rs 15.54 for previous quarter ended Sep 2021 and Rs 4.14 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 2435.0 cr for period ended TTM vis-vis sales of Rs 1622.0 cr for the period ended Mar 2021, a healthy growth of 33.4%. The 3 year sales cagr stood at 25.2%.
Operating margins expanded to 24.0% for period ended TTM vis-vis 16.0% for period ended Mar 2021, expansion of 800.0 bps.
Net Profit reported at Rs 284.0 cr for period ended TTM vis-vis sales of Rs 69.0 cr for the period ended Mar 2021, rising 75.7%.
Company recorded a healthy Net Profit CAGR of 64.3% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 155.0 cr for period ended Mar 2021 vis-vis Rs 98.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 13.0% compared to 11.0% over the last 3 Years. – The stock has given a return of 295% on a 1 Year basis vis-vis a return of 52% over the last 3 Years. – The compounded sales growth on a TTM bassis is 54% vis-vis a compounded sales growth of 12% over the last 3 Years. – The compounded profit growth on a TTM basis is 1334% vis-vis a compounded profit growth of 9% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Dec 2021 fii holding stood at 4.02% vis-vis 2.7% for Sep 2021 – Public shareholding has remained largely constant. The Dec 2021 public holding stood at 35.47% vis-vis 37.02% for Sep 2021
Conclusion
– has reduced debt.
– is expected to give good quarter – has a low return on equity of 10.67% for last 3 years.
– might be capitalizing the interest cost
-Dividend payout has been low at 12.46% of profits over last 3 years
