Stock Analysis Report

Executive Summary

Salona Cotspin Limited produces and sells cotton textile products in India.

Risk Analysis

Earnings have declined by -8.53% per year over past 5 years

Interest payments are not well covered by earnings

Does not have a meaningful market cap (₹380M)

Unstable dividend track record

+ 1 more risk

Snowflake Analysis

Mediocre balance sheet unattractive dividend payer.

Share Price & News

How has Salona Cotspin's share price performed over time and what events caused price changes?

Latest Share Price and Events

Stable Share Price: 590056 has not had significant price volatility in the past 3 months.

Market Performance

7 Day Return




IN Luxury


IN Market

1 Year Return




IN Luxury


IN Market

Return vs Industry: 590056 underperformed the Indian Luxury industry which returned 16.6% over the past year.

Return vs Market: 590056 underperformed the Indian Market which returned 11.1% over the past year.

Shareholder returns

7 Day9.2%0.2%-0.4%
30 Day-3.3%3.3%-1.2%
90 Day2.4%8.5%3.3%
1 Year4.5%3.7%17.3%16.6%13.0%11.1%
3 Year39.8%37.2%53.8%52.0%25.3%18.6%
5 Year236.0%222.0%103.0%96.4%35.4%23.1%

Price Volatility Vs. Market

How volatile is Salona Cotspin's share price compared to the market and industry in the last 5 years?

Simply Wall St News

No news available


Is Salona Cotspin undervalued compared to its fair value and its price relative to the market?


Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: 590056 (₹71) is trading above our estimate of fair value (₹8.24)

Significantly Below Fair Value: 590056 is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: 590056 is poor value based on its PE Ratio (43.4x) compared to the Luxury industry average (11x).

PE vs Market: 590056 is poor value based on its PE Ratio (43.4x) compared to the Indian market (13.4x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 590056's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: 590056 is overvalued based on its PB Ratio (1.2x) compared to the IN Luxury industry average (0.5x).

Next Steps

Future Growth

How is Salona Cotspin forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?


Forecasted Consumer Durables industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Salona Cotspin has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Next Steps

Past Performance

How has Salona Cotspin performed over the past 5 years?


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 590056 has high quality earnings.

Growing Profit Margin: 590056's current net profit margins (0.8%) are lower than last year (1.9%).

Past Earnings Growth Analysis

Earnings Trend: 590056's earnings have declined by -8.5% per year over the past 5 years.

Accelerating Growth: 590056's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 590056 had negative earnings growth (-66.6%) over the past year, making it difficult to compare to the Luxury industry average (2.7%).

Return on Equity

High ROE: 590056's Return on Equity (2.7%) is considered low.

Return on Assets

Return on Capital Employed

Next Steps

Financial Health

How is Salona Cotspin's financial position?

Financial Position Analysis

Short Term Liabilities: 590056's short term assets (₹474.8M) exceed its short term liabilities (₹333.1M).

Long Term Liabilities: 590056's short term assets (₹474.8M) exceed its long term liabilities (₹91.2M).

Debt to Equity History and Analysis

Debt Level: 590056's debt to equity ratio (103.5%) is considered high.

Reducing Debt: 590056's debt to equity ratio has reduced from 103.7% to 103.5% over the past 5 years.

Debt Coverage: 590056's debt is not well covered by operating cash flow (18%).

Interest Coverage: 590056's interest payments on its debt are not well covered by EBIT (1.4x coverage).

Balance Sheet

Inventory Level: 590056 has a high level of physical assets or inventory.

Debt Coverage by Assets: 590056's debt is covered by short term assets (assets are 1.4x debt).

Next Steps


What is Salona Cotspin's current dividend yield, its reliability and sustainability?


Current Dividend Yield

Dividend Yield vs Market


Current dividend yield vs market & industry

Notable Dividend: 590056's dividend (0.85%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: 590056's dividend (0.85%) is low compared to the top 25% of dividend payers in the Indian market (2.51%).

Stability and Growth of Payments

Stable Dividend: 590056 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 590056 has only been paying a dividend for 9 years, and since then payments have fallen.

Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.7%), 590056's dividend payments are well covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.

Next Steps


How experienced are the management team and are they aligned to shareholders interests?


Average board tenure


Shyamlal Agarwala 0



Mr. Shyamlal Agarwala serves as the Executive Chairman, Chief Executive Officer at Salona Cotspin Ltd and has been its Managing Director since April 1,2015. 

CEO Compensation Analysis

Compensation vs Market: Shyamlal's total compensation ($USD39.57K) is about average for companies of similar size in the Indian market ($USD50.14K).

Compensation vs Earnings: Shyamlal's compensation has been consistent with company performance over the past year.

Board Members

Shyamlal Agarwala
Chairman0yrs₹2.83m8.19% 31.1m
Manoj Jhajharia
Joint MD & Executive Director0yrs₹1.99m5.54% 21.0m
Arun Jhajharia
Additional Director2yrs₹1.20m6.05% 23.0m
Dhiresh Jayasi
Non-Executive Independent Director5.6yrs₹16.00k1.75% 6.6m
Meenakumari Shanmugam
Non-Executive Independent Director4.9yrs₹8.00kno data


Average Tenure

Experienced Board: 590056's board of directors are considered experienced (4.9 years average tenure).


Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

Company Information

Salona Cotspin Limited's company bio, employee growth, exchange listings and data sources

Key Information

  • Name: Salona Cotspin Limited
  • Ticker: 590056
  • Exchange: BSE
  • Founded: 1994
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹379.928m
  • Shares outstanding: 5.35m
  • Website:

Number of Employees


  • Salona Cotspin Limited
  • No. 9, Ramalinga Nagar
  • IV Cross Saibaba Colony
  • Coimbatore
  • Tamil Nadu
  • 641011
  • India


TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
590056BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 2006
SALONANSEI (National Stock Exchange of India)YesEquity SharesININRJul 2006


Salona Cotspin Limited produces and sells cotton textile products in India. The company offers cotton, blended, ring spin, open end, slub, hank, and compact yarn products, as well as knitted fabrics and apparels. It also provides grey, dyed, and printed fabrics. The company also exports its yarns and fabrics to Sri Lanka, Bangladesh, Hong Kong, South Korea, Germany, Mexico, South America, Russia, etc. Salona Cotspin Limited was founded in 1994 and is based in Coimbatore, India. 

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 12:50
End of Day Share Price2020/02/12 00:00
Annual Earnings2019/03/31

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.