Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 21 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo

Salona Cotspin Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 21, 2024, 1:54 am

Market Cap 155 Cr.
Current Price 294
High / Low 383/250
Stock P/E22.8
Book Value 160
Dividend Yield0.34 %
ROCE8.31 %
ROE7.96 %
Face Value 10.0
PEG Ratio0.58

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

View Share Price Target for

Competitors of

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Hisar Spinning Mills Ltd 25.9 Cr. 69.2 84.0/40.011.5 62.40.00 %12.5 %9.50 % 10.0
Rudra Ecovation Ltd 601 Cr. 57.2 82.6/29.11,430 9.010.00 %1.92 %4.05 % 1.00
H P Cotton Textile Mills Ltd 50.3 Cr. 128 194/110 38.50.00 %4.39 %6.57 % 10.0
Gujarat Hy-Spin Ltd 33.1 Cr. 19.8 20.7/8.5031.2 11.20.00 %4.31 %0.90 % 10.0
Gem Spinners India Ltd 57.4 Cr. 9.35 10.6/3.27 0.310.00 %9.62 %% 5.00
Industry Average3,498.96 Cr217.9999.19126.100.29%32.92%11.11%7.40

All Competitor Stocks of

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales81.27141.45164.37170.60170.66155.1792.5892.18146.99140.56208.88206.42166.40
Expenses75.99133.58153.32159.67163.12144.6880.8484.58141.98134.21198.60199.51159.72
Operating Profit5.287.8711.0510.937.5410.4911.747.605.016.3510.286.916.68
OPM %6.50%5.56%6.72%6.41%4.42%6.76%12.68%8.24%3.41%4.52%4.92%3.35%4.01%
Other Income0.070.010.070.00-0.020.000.150.060.080.010.050.090.11
Interest1.911.471.861.562.491.351.992.543.522.764.215.532.71
Depreciation0.590.750.750.751.081.281.701.241.261.382.500.262.72
Profit before tax2.855.668.518.623.957.868.203.880.312.223.621.211.36
Tax %25.61%16.61%16.69%22.62%66.84%19.08%33.54%32.47%-912.90%7.21%51.93%-19.83%34.56%
Net Profit2.114.727.096.681.306.355.452.623.142.061.731.440.90
EPS in Rs4.018.9713.4712.692.4712.0710.364.985.973.913.292.741.71

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales86106103100121107133122230647487722
Expenses7290939111397123113215610452692
Operating Profit13161099910915373530
OPM %16%15%9%9%7%9%8%7%6%6%7%4%
Other Income000000000000
Interest4333234447915
Depreciation564344433357
Profit before tax48333222827208
Tax %16%26%17%17%-20%4%29%38%20%26%13%27%
Net Profit36223221620186
EPS in Rs5.9110.764.014.316.354.053.102.2211.7837.6133.3911.65
Dividend Payout %0%11%0%18%10%15%20%0%9%3%4%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)100.00%-66.67%0.00%50.00%-33.33%0.00%-50.00%500.00%233.33%-10.00%-66.67%
Change in YoY Net Profit Growth (%)0.00%-166.67%66.67%50.00%-83.33%33.33%-50.00%550.00%-266.67%-243.33%-56.67%

has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:21%
5 Years:40%
3 Years:46%
TTM:24%
Compounded Profit Growth
10 Years:1%
5 Years:31%
3 Years:0%
TTM:-29%
Stock Price CAGR
10 Years:27%
5 Years:35%
3 Years:15%
1 Year:-1%
Return on Equity
10 Years:16%
5 Years:20%
3 Years:23%
Last Year:8%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:44 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital5555555555555
Reserves10151719232526273352697479
Borrowings403326313543514077139157257224
Other Liabilities69698108112432392733
Total Liabilities6163546471839083138228270364341
Fixed Assets29252118171526242743417067
CWIP100005100003645
Investments0000000000000
Other Assets3238334654636359112185229257229
Total Assets6163546471839083138228270364341

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +812100-34614-24-35-5-12
Cash from Investing Activity +-1-1-0-1-2-7-100-5-20-3-72
Cash from Financing Activity +-8-10-102334-142954884
Net Cash Flow-11-12-2-0000-0-0-0

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-27.00-17.00-16.00-22.00-26.00-34.00-41.00-31.00-62.00-102.00-122.00-227.00

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 Days404431466565504185549273
Inventory Days124109101148115184146159124435134
Days Payable1117922173416295212227
Cash Conversion Cycle15313612317216321618117115785121100
Working Capital Days93868611913116514313514088134114
ROCE %14%20%11%11%9%8%8%8%13%22%14%8%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters65.98%65.98%65.98%65.98%65.98%67.09%67.09%67.09%67.09%67.09%67.09%67.09%
DIIs0.00%0.03%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public34.02%33.99%34.02%34.02%34.02%32.90%32.91%32.91%32.91%32.91%32.91%32.91%
No. of Shareholders2,4363,5813,5463,5533,4783,2723,4853,2272,9672,6072,8032,689

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)11.6433.3937.6011.782.23
Diluted EPS (Rs.)11.6433.3937.6011.782.23
Cash EPS (Rs.)24.3843.2343.3816.627.17
Book Value[Excl.RevalReserv]/Share (Rs.)149.69139.20107.4171.3460.22
Book Value[Incl.RevalReserv]/Share (Rs.)149.69139.20107.4171.3460.22
Dividend / Share (Rs.)1.001.201.201.000.00
Revenue From Operations / Share (Rs.)1355.36913.721214.28431.85228.65
PBDIT / Share (Rs.)57.2065.9270.2927.9216.18
PBIT / Share (Rs.)44.3255.6664.0522.9311.21
PBT / Share (Rs.)15.7738.0150.2014.563.56
Net Profit / Share (Rs.)11.5032.9737.1311.632.20
PBDIT Margin (%)4.217.215.786.467.07
PBIT Margin (%)3.266.095.275.314.90
PBT Margin (%)1.164.164.133.371.55
Net Profit Margin (%)0.843.603.052.690.96
Return on Networth / Equity (%)7.6823.6834.5716.303.65
Return on Capital Employeed (%)14.4225.8738.4823.3414.77
Return On Assets (%)1.686.508.684.481.40
Long Term Debt / Equity (X)0.960.480.470.310.20
Total Debt / Equity (X)3.222.122.421.881.18
Asset Turnover Ratio (%)2.281.953.532.081.41
Current Ratio (X)1.241.371.321.281.33
Quick Ratio (X)0.941.010.860.780.47
Inventory Turnover Ratio (X)2.121.962.221.331.63
Dividend Payout Ratio (NP) (%)0.003.592.650.000.00
Dividend Payout Ratio (CP) (%)0.002.742.270.000.00
Earning Retention Ratio (%)0.0096.4197.350.000.00
Cash Earning Retention Ratio (%)0.0097.2697.730.000.00
Interest Coverage Ratio (X)2.003.745.073.342.12
Interest Coverage Ratio (Post Tax) (X)1.402.873.682.391.29
Enterprise Value (Cr.)419.05281.36256.39119.4757.15
EV / Net Operating Revenue (X)0.580.570.390.510.46
EV / EBITDA (X)13.828.016.848.036.63
MarketCap / Net Operating Revenue (X)0.220.250.180.210.16
Retention Ratios (%)0.0096.4097.340.000.00
Price / BV (X)2.071.692.061.280.61
Price / Net Operating Revenue (X)0.220.250.180.210.16
EarningsYield0.030.140.160.120.05

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of as of December 21, 2024 is: 291.37

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 December 21, 2024, is Overvalued by 0.89% compared to the current share price 294.00

Intrinsic Value of as of December 21, 2024 is: 405.92

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 December 21, 2024, is Undervalued by 38.07% compared to the current share price 294.00

Last 5 Year EPS CAGR: 39.31%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (247.00 cr) and profit (7.50 cr) over the years.
  1. The stock has a low average ROCE of 12.17%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 119.50, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 148.17, which may not be favorable.
  4. The company has higher borrowings (88.69) compared to reserves (36.08), which may suggest financial risk.
  • 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 :
    1. Net Profit Margin: 0.84%
      • 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: 14.42% (Industry Average ROCE: 32.92%)
      • 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%: 7.68% (Industry Average ROE: 11.11%)
      • 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): 1.4
      • 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: 0.94
      • 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: 22.8 (Industry average Stock P/E: 99.19)
      • 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: 3.22
      • 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

Salona Cotspin Ltd. is a Public Limited Listed company incorporated on 18/01/1994 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L17111TZ1994PLC004797 and registration number is 004797. 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. 647.08 Cr. and Equity Capital is Rs. 5.33 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Textiles - Spinning - Cotton BlendedSF No.74/12 & 75/3, Sathy Road, Erode District Tamil Nadu 638402info@salonagroup.com
https://www.salonacotspin.com
Management
NamePosition Held
Mr. Shyamlal AgarwalaManaging Director
Mr. Manoj Kumar JhajhariaJoint Managing Director
Mr. Arun Kumar JhajhariaDirector
Mr. Dhiresh JayasiDirector
Mrs. S MeenakumariDirector
Mr. Hari Desikan GaneshDirector
Mr. Raghav AgarwalDirector
Mr. Prabhu DamodaranDirector

FAQ

What is the latest intrinsic value of Salona Cotspin Ltd?

The latest intrinsic value of Salona Cotspin Ltd as on 20 December 2024 is ₹291.37, which is 0.89% lower than the current market price of ₹294.00. The stock has a market capitalization of 155 Cr. and recorded a high/low of 383/250 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹79 Cr and total liabilities of ₹341 Cr.

What is the Market Cap of Salona Cotspin Ltd?

The Market Cap of Salona Cotspin Ltd is 155 Cr..

What is the current Stock Price of Salona Cotspin Ltd as on 20 December 2024?

The current stock price of Salona Cotspin Ltd as on 20 December 2024 is 294.

What is the High / Low of Salona Cotspin Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Salona Cotspin Ltd stocks is 383/250.

What is the Stock P/E of Salona Cotspin Ltd?

The Stock P/E of Salona Cotspin Ltd is 22.8.

What is the Book Value of Salona Cotspin Ltd?

The Book Value of Salona Cotspin Ltd is 160.

What is the Dividend Yield of Salona Cotspin Ltd?

The Dividend Yield of Salona Cotspin Ltd is 0.34 %.

What is the ROCE of Salona Cotspin Ltd?

The ROCE of Salona Cotspin Ltd is 8.31 %.

What is the ROE of Salona Cotspin Ltd?

The ROE of Salona Cotspin Ltd is 7.96 %.

What is the Face Value of Salona Cotspin Ltd?

The Face Value of Salona Cotspin 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 . 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