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Last Updated on: 17 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Nitin Spinners Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 15, 2024, 2:13 pm

Market Cap 2,186 Cr.
Current Price 389
High / Low474/293
Stock P/E14.1
Book Value 217
Dividend Yield0.64 %
ROCE11.6 %
ROE12.1 %
Face Value 10.0
PEG Ratio0.35

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Nitin Spinners Ltd

Competitors of Nitin Spinners Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Hisar Spinning Mills Ltd 24.7 Cr. 66.084.0/38.012.8 59.60.00 %12.5 %9.50 % 10.0
Rudra Ecovation Ltd 659 Cr. 62.882.6/22.21,569 7.740.00 %1.92 %4.05 % 1.00
H P Cotton Textile Mills Ltd 47.8 Cr. 122194/110 38.50.00 %4.39 %6.57 % 10.0
Gujarat Hy-Spin Ltd 28.9 Cr. 17.217.8/8.5027.2 11.20.00 %4.31 %0.90 % 10.0
Gem Spinners India Ltd 61.7 Cr. 10.010.6/3.27 0.310.00 %9.62 %% 5.00
Industry Average3,086.04 Cr197.3492.59131.040.33%35.08%10.57%7.41

All Competitor Stocks of Nitin Spinners Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales467512554665705769709506537655617737750
Expenses393407425487527602600449477584541655648
Operating Profit741041291771781671095760717682103
OPM %16%20%23%27%25%22%15%11%11%11%12%11%14%
Other Income100-4011101100
Interest161614141314119710151525
Depreciation23222222222222222221232435
Profit before tax36669313814313277273141394343
Tax %35%36%35%36%35%35%14%-6%-1%5%26%26%26%
Net Profit23436087938566293239293232
EPS in Rs4.147.6210.6715.5416.5915.2011.665.185.626.865.145.645.65

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales4284464886167669331,1451,2411,4361,6222,6902,4042,760
Expenses3833583945166297999901,0621,2661,3652,0392,1072,428
Operating Profit458894100137133155178170257652297332
OPM %11%20%19%16%18%14%14%14%12%16%24%12%12%
Other Income0-1504112322-333
Interest21271723332230295662553866
Depreciation242425284042565581918787104
Profit before tax02152546570719736107506176165
Tax %0%33%33%24%32%18%27%34%33%35%36%6%
Net Profit0143541445752642469326165131
EPS in Rs0.073.097.598.949.6312.519.4311.404.2412.2558.0129.3223.29
Dividend Payout %0%0%10%11%10%10%13%11%14%12%4%9%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)150.00%17.14%7.32%29.55%-8.77%23.08%-62.50%187.50%372.46%-49.39%
Change in YoY Net Profit Growth (%)0.00%-132.86%-9.83%22.23%-38.32%31.85%-85.58%250.00%184.96%-421.85%

Nitin Spinners Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 10 years from 2013-2014 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:20%
5 Years:19%
3 Years:21%
TTM:25%
Compounded Profit Growth
10 Years:14%
5 Years:15%
3 Years:24%
TTM:19%
Stock Price CAGR
10 Years:30%
5 Years:54%
3 Years:14%
1 Year:25%
Return on Equity
10 Years:19%
5 Years:19%
3 Years:23%
Last Year:12%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:58 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital46464646465656565656565656
Reserves55861211602183614264385078209731,0901,161
Borrowings2071763783525684498601,0409626899801,3391,180
Other Liabilities38466577536393111151260209231254
Total Liabilities3463546106358859291,4361,6451,6761,8242,2182,7172,652
Fixed Assets2131914173826135705241,1401,0601,0121,0111,7091,648
CWIP0210170446802034020
Investments0000000000000
Other Assets1331421932362723554455066158128671,0051,004
Total Assets3463546106358859291,4361,6451,6761,8242,2182,7172,652

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +898745100546610498155431194163
Cash from Investing Activity +-4-39-219-36-241-20-483-217-11-86-433-426
Cash from Financing Activity +-84-48176-65188-47382116-144-345239262
Net Cash Flow0-01-01-13-3-00-00

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow45.00-119.00-82.00-278.00-215.00-435.00-294.00-682.00169.00-705.00-37.00-683.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days231924191928363937333440
Inventory Days11387909010510399105137100110108
Days Payable7139101113151621201214
Cash Conversion Cycle1299210599113118119127153113132134
Working Capital Days56536458668291899285104110
ROCE %20%23%18%18%13%12%11%6%11%37%12%12%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters56.17%56.25%56.25%56.36%56.36%56.40%56.41%56.41%56.41%56.41%56.46%56.47%
FIIs2.70%4.02%4.84%4.26%3.81%3.80%2.40%2.21%1.32%1.09%0.70%0.61%
DIIs4.11%4.26%4.62%5.03%5.57%5.37%6.30%8.47%11.24%13.32%13.74%14.99%
Public37.02%35.47%34.29%34.35%34.26%34.41%34.88%32.92%31.02%29.18%29.11%27.93%
No. of Shareholders35,92832,96937,79142,15443,67343,07840,54637,04533,77432,33430,71629,275

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Quant Small Cap Fund2,730,4990.8797.781,384,2052024-11-1597.26%
Bandhan Small Cap Fund1,384,2051.5449.571,384,2052024-11-150%
HSBC Small Cap Fund - Regular Plan1,305,1020.3746.741,384,2052024-11-15-5.71%
Mahindra Manulife Small Cap Fund822,4561.1529.451,384,2052024-11-15-40.58%
Mahindra Manulife Multi Cap Fund633,5320.9222.691,384,2052024-11-15-54.23%
Mahindra Manulife Equity Savings Fund97,2150.853.481,384,2052024-11-15-92.98%
Bandhan Core Equity Fund80,8870.092.91,384,2052024-11-15-94.16%
ITI ELSS Tax Saver Fund34,0000.531.221,384,2052024-11-15-97.54%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)23.3929.3258.0112.254.24
Diluted EPS (Rs.)23.3929.3258.0112.254.24
Cash EPS (Rs.)44.4744.7673.5628.4418.59
Book Value[Excl.RevalReserv]/Share (Rs.)203.90183.01155.78100.2087.87
Book Value[Incl.RevalReserv]/Share (Rs.)203.90183.01155.78100.2087.87
Dividend / Share (Rs.)2.502.504.001.500.60
Revenue From Operations / Share (Rs.)516.84428.09478.89288.94255.79
PBDIT / Share (Rs.)67.4753.43116.2346.1030.57
PBIT / Share (Rs.)46.4037.99100.6929.9016.22
PBT / Share (Rs.)31.5831.2890.0318.956.34
Net Profit / Share (Rs.)23.3929.3258.0112.254.24
PBDIT Margin (%)13.0512.4824.2715.9511.95
PBIT Margin (%)8.978.8721.0210.346.34
PBT Margin (%)6.107.3018.806.552.47
Net Profit Margin (%)4.526.8412.114.231.65
Return on Networth / Equity (%)11.4716.0137.2312.224.82
Return on Capital Employeed (%)12.5712.6540.0514.007.47
Return On Assets (%)4.847.4317.874.101.44
Long Term Debt / Equity (X)0.700.540.461.001.37
Total Debt / Equity (X)1.170.950.781.501.95
Asset Turnover Ratio (%)1.181.191.540.970.93
Current Ratio (X)1.541.501.831.271.15
Quick Ratio (X)0.650.570.840.520.52
Inventory Turnover Ratio (X)3.573.654.133.143.72
Dividend Payout Ratio (NP) (%)0.008.525.174.8935.57
Dividend Payout Ratio (CP) (%)0.005.584.072.108.10
Earning Retention Ratio (%)0.0091.4894.8395.1164.43
Cash Earning Retention Ratio (%)0.0094.4295.9397.9091.90
Interest Coverage Ratio (X)4.557.9711.814.213.09
Interest Coverage Ratio (Post Tax) (X)2.585.376.982.121.43
Enterprise Value (Cr.)3159.672248.471963.571301.991119.92
EV / Net Operating Revenue (X)1.090.930.720.800.77
EV / EBITDA (X)8.337.493.005.026.51
MarketCap / Net Operating Revenue (X)0.620.520.470.280.10
Retention Ratios (%)0.0091.4794.8295.1064.42
Price / BV (X)1.591.231.460.800.31
Price / Net Operating Revenue (X)0.620.520.470.280.10
EarningsYield0.070.120.250.150.15

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Nitin Spinners Ltd as of November 17, 2024 is: 372.59

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 17, 2024, Nitin Spinners Ltd is Overvalued by 4.22% compared to the current share price 389.00

Intrinsic Value of Nitin Spinners Ltd as of November 17, 2024 is: 523.83

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 17, 2024, Nitin Spinners Ltd is Undervalued by 34.66% compared to the current share price 389.00

Last 5 Year EPS CAGR: 40.59%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 16.08%, which is a positive sign.
  2. The company has shown consistent growth in sales (283.62 cr) and profit (109.23 cr) over the years.
  1. The stock has a high average Working Capital Days of 79.17, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 119.50, which may not be favorable.
  3. The company has higher borrowings (706.15) compared to reserves (493.54), which may suggest financial risk.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Nitin Spinners Ltd:
    1. Net Profit Margin: 4.52%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 12.57% (Industry Average ROCE: 33.18%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 11.47% (Industry Average ROE: 8.28%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 2.58
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.65
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 14.1 (Industry average Stock P/E: 65.06)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 1.17
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Nitin Spinners Ltd. is a Public Limited Listed company incorporated on 15/10/1992 and has its registered office in the State of Rajasthan, India. Company’s Corporate Identification Number(CIN) is L17111RJ1992PLC006987 and registration number is 006987. Currently Company is involved in the business activities of Preparation and spinning of cotton fiber including blended* cotton. Company’s Total Operating Revenue is Rs. 2692.32 Cr. and Equity Capital is Rs. 56.22 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Textiles - Spinning - Cotton Blended16-17 Km. Stone, Chittor Road, Bhilwara Rajasthan 311025nsl@nitinspinners.com
http://www.nitinspinners.com
Management
NamePosition Held
Mr. Dinesh NolkhaManaging Director
Mr. Nitin NolakhaJoint Managing Director
Mr. Rohit Swadheen MehtaIndependent Director
Mr. R C LodhaIndependent Director
Mr. Pratuysh NolkhaAdditional Executive Director
Ms. Vibha ArenAddnl.Independent Director

FAQ

What is the latest intrinsic value of Nitin Spinners Ltd?

The latest intrinsic value of Nitin Spinners Ltd as on 17 November 2024 is ₹372.59, which is 4.22% lower than the current market price of ₹389.00.

What is the Market Cap of Nitin Spinners Ltd?

The Market Cap of Nitin Spinners Ltd is 2,186 Cr..

What is the current Stock Price of Nitin Spinners Ltd as on 17 November 2024?

The current stock price of Nitin Spinners Ltd as on 17 November 2024 is ₹389.

What is the High / Low of Nitin Spinners Ltd stocks in FY 2024?

In FY 2024, the High / Low of Nitin Spinners Ltd stocks is 474/293.

What is the Stock P/E of Nitin Spinners Ltd?

The Stock P/E of Nitin Spinners Ltd is 14.1.

What is the Book Value of Nitin Spinners Ltd?

The Book Value of Nitin Spinners Ltd is 217.

What is the Dividend Yield of Nitin Spinners Ltd?

The Dividend Yield of Nitin Spinners Ltd is 0.64 %.

What is the ROCE of Nitin Spinners Ltd?

The ROCE of Nitin Spinners Ltd is 11.6 %.

What is the ROE of Nitin Spinners Ltd?

The ROE of Nitin Spinners Ltd is 12.1 %.

What is the Face Value of Nitin Spinners Ltd?

The Face Value of Nitin Spinners Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Nitin Spinners Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE