Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 22 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Salona Cotspin Ltd

About the Company - Salona Cotspin Ltd

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

Salona Cotspin Ltd. Share Price Update

Share PriceValue
Today₹330.20
Previous Day₹331.25

Basic Stock Data of Salona Cotspin Ltd

Market Cap 178 Cr.
Current Price 338
High / Low357/202
Stock P/E21.2
Book Value 147
Dividend Yield0.00 %
ROCE13.8 %
ROE26.6 %
Face Value 10.0

Data Source: screener.in

Competitors of Salona Cotspin Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Lambodhara Textiles Ltd 186 Cr. 179241/13652.5 1050.41 %18.4 %17.4 % 5.00
Nagreeka Exports Ltd 114 Cr. 36.444.9/15.611.8 36.70.00 %3.82 %2.92 % 5.00
Patspin India Ltd 39.8 Cr. 12.916.5/8.85 7.850.00 %14.6 %% 10.0
Pashupati Cotspin Ltd 156 Cr. 102128/90.042.3 72.30.73 %5.59 %3.74 % 10.0
Trident Ltd 22,362 Cr. 43.952.9/25.053.2 8.140.82 %11.9 %11.0 % 1.00
Industry Average103.56 Cr74.8431.96460.39%10.86%7.01%6.2

Salona Cotspin Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales52.9470.9781.27141.45164.37170.60170.66155.1792.5892.18146.99140.56208.88
Expenses50.1066.1575.99133.58153.32159.67163.12144.6880.8484.58141.98134.21198.60
Operating Profit2.844.825.287.8711.0510.937.5410.4911.747.605.016.3510.28
OPM %5.36%6.79%6.50%5.56%6.72%6.41%4.42%6.76%12.68%8.24%3.41%4.52%4.92%
Other Income0.000.050.070.010.070.00-0.020.000.150.060.080.010.05
Interest0.651.011.911.471.861.562.491.351.992.543.522.764.21
Depreciation0.690.690.590.750.750.751.081.281.701.241.261.382.50
Profit before tax1.503.172.855.668.518.623.957.868.203.880.312.223.62
Tax %16.67%16.72%25.61%16.61%16.69%22.62%66.84%19.08%33.54%32.47%-912.90%7.21%51.93%
Net Profit1.252.652.114.727.096.681.306.355.452.623.142.061.73
EPS in Rs2.385.044.018.9713.4712.692.4712.0710.364.985.973.913.29

Salona Cotspin Ltd Quarterly Chart

Salona Cotspin Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales7986106103100121107133122230647487589
Expenses767290939111397123113215610452559
Operating Profit213161099910915373529
OPM %3%16%15%9%9%7%9%8%7%6%6%7%5%
Other Income0000000000000
Interest54333234447913
Depreciation5564344433356
Profit before tax-7483332228272010
Tax %29%16%26%17%17%-20%4%29%38%20%26%13%
Net Profit-5362232216201810
EPS in Rs-9.335.9110.764.014.316.354.053.102.2211.7837.6133.3918.15
Dividend Payout %0%0%11%0%18%10%15%20%0%9%3%4%

Salona Cotspin Ltd Profit & Loss Yearly Chart

Salona Cotspin Ltd Growth

Compounded Sales Growth
10 Years:19%
5 Years:35%
3 Years:59%
TTM:38%
Compounded Profit Growth
10 Years:19%
5 Years:52%
3 Years:146%
TTM:-47%
Stock Price CAGR
10 Years:33%
5 Years:40%
3 Years:56%
1 Year:41%
Return on Equity
10 Years:19%
5 Years:22%
3 Years:29%
Last Year:27%

Salona Cotspin Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital5555555555555
Reserves7101517192325262733526972
Borrowings45403326313543514077139157191
Other Liabilities5696981081124323928
Total Liabilities636163546471839083138228270297
Fixed Assets34292521181715262427434153
CWIP0100005100000
Investments0000000000000
Other Assets303238334654636359112185229244
Total Assets636163546471839083138228270297

Salona Cotspin Ltd Reserves and Borrowings Chart

Salona Cotspin Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 18812100-34614-24-35-5
Cash from Investing Activity -1-1-1-0-1-2-7-100-5-20-3
Cash from Financing Activity -17-8-10-102334-1429548
Net Cash Flow-0-11-12-2-0000-0-0

Salona Cotspin Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days254044314665655041855492
Inventory Days1071241091011481151841461591244351
Days Payable12111792217341629521222
Cash Conversion Cycle12115313612317216321618117115785121
Working Capital Days7993868611913116514313514088134
ROCE %-3%14%20%11%11%9%8%8%8%13%22%14%

Salona Cotspin Ltd Financial Efficiency Indicators Chart

Salona Cotspin Ltd Share Holding Pattern

MonthMar 2016Jun 2016Dec 2018Jun 2019Sep 2019
Promoters54.95%56.54%61.42%61.86%62.24%
Public45.05%43.46%38.58%38.14%37.76%
No. of Shareholders1,3711,3892,1091,9841,958

Salona Cotspin Ltd Shareholding Pattern Chart

No. of Salona Cotspin Ltd Shareholders

This stock is not held by any mutual fund

Salona Cotspin Ltd ROCE Trend

Salona Cotspin Ltd EPS Trend

Salona Cotspin Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)33.3937.6011.782.233.10
Diluted EPS (Rs.)33.3937.6011.782.233.10
Cash EPS (Rs.)43.2343.3816.627.1710.28
Book Value[Excl.RevalReserv]/Share (Rs.)139.20107.4171.3460.2258.78
Book Value[Incl.RevalReserv]/Share (Rs.)139.20107.4171.3460.2258.78
Dividend / Share (Rs.)0.001.201.000.000.60
Revenue From Operations / Share (Rs.)913.721214.28431.85228.65249.34
PBDIT / Share (Rs.)65.9270.2927.9216.1819.03
PBIT / Share (Rs.)55.6664.0522.9311.2111.81
PBT / Share (Rs.)38.0150.2014.563.564.32
Net Profit / Share (Rs.)32.9737.1311.632.203.06
PBDIT Margin (%)7.215.786.467.077.63
PBIT Margin (%)6.095.275.314.904.73
PBT Margin (%)4.164.133.371.551.73
Net Profit Margin (%)3.603.052.690.961.22
Return on Networth / Equity (%)23.6834.5716.303.655.20
Return on Capital Employeed (%)25.8738.4823.3414.7715.21
Return On Assets (%)6.508.684.481.401.81
Long Term Debt / Equity (X)0.480.470.310.200.27
Total Debt / Equity (X)2.122.421.881.181.53
Asset Turnover Ratio (%)1.953.532.081.411.53
Current Ratio (X)1.371.321.281.331.27
Quick Ratio (X)1.010.860.780.470.50
Inventory Turnover Ratio (X)1.962.221.331.631.74
Dividend Payout Ratio (NP) (%)0.002.650.000.0019.36
Dividend Payout Ratio (CP) (%)0.002.270.000.005.76
Earning Retention Ratio (%)0.0097.350.000.0080.64
Cash Earning Retention Ratio (%)0.0097.730.000.0094.24
Interest Coverage Ratio (X)3.745.073.342.122.54
Interest Coverage Ratio (Post Tax) (X)2.873.682.391.291.41
Enterprise Value (Cr.)281.36256.39119.4757.1576.95
EV / Net Operating Revenue (X)0.570.390.510.460.57
EV / EBITDA (X)8.016.848.036.637.59
MarketCap / Net Operating Revenue (X)0.250.180.210.160.22
Retention Ratios (%)0.0097.340.000.0080.63
Price / BV (X)1.692.061.280.610.93
Price / Net Operating Revenue (X)0.250.180.210.160.22
EarningsYield0.140.160.120.050.05

Salona Cotspin Ltd Profitability Ratios (%)

Salona Cotspin Ltd Liquidity Ratios

Salona Cotspin Ltd Liquidity Ratios (%)

Salona Cotspin Ltd Interest Coverage Ratios (X)

Salona Cotspin Ltd Valuation Ratios

Fair Value / Intrinsic Value of Salona Cotspin Ltd

Fair Value: ₹845.54

The stock is undervalued by 150.16% compared to the current price ₹338

*Investments are subject to market risks

Strength and Weakness of Salona Cotspin Ltd

StrengthWeakness
  1. The company has shown consistent growth in sales (223.85 cr) and profit (6.54 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 39.87 and average Dividend Yield of 5.26%.
  2. The stock has a low average ROCE of 11.25%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 116.58, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 149.92, which may not be favorable.
  5. The company has higher borrowings (69.85) compared to reserves (30.38), which may suggest financial risk.

Should I Buy Salona Cotspin Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Salona Cotspin Ltd:
    1. Net Profit Margin: 3.60%
      • 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: 25.87% (Industry Average ROCE: 14.54%)
      • 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. Interest Coverage Ratio (Post Tax): 2.87
      • 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.
    4. Quick Ratio: 1.01
      • 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.
    5. ✓ Stock P/E: 21.2 (Industry average Stock P/E: 22.18)
      • 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.
    6. ✗ Total Debt / Equity: 2.12
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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 Salona Cotspin 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