NSEI:NITINSPIN

Stock Analysis Report

Executive Summary

Nitin Spinners Limited manufactures and sells cotton yarns and knitted fabrics in India.

Snowflake

Fundamentals

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

How has Nitin Spinners's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.3%

NITINSPIN

1.7%

IN Luxury

3.1%

IN Market


1 Year Return

-37.8%

NITINSPIN

10.4%

IN Luxury

3.7%

IN Market

Return vs Industry: NITINSPIN underperformed the Indian Luxury industry which returned 10.4% over the past year.

Return vs Market: NITINSPIN underperformed the Indian Market which returned 3.7% over the past year.


Shareholder returns

NITINSPINIndustryMarket
7 Day0.3%1.7%3.1%
30 Day-6.1%5.4%5.7%
90 Day-24.2%7.3%1.4%
1 Year-36.4%-37.8%11.3%10.4%5.9%3.7%
3 Year-28.1%-31.4%47.8%46.1%22.3%16.0%
5 Year112.7%96.4%104.2%100.6%42.5%28.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Nitin Spinners undervalued compared to its fair value and its price relative to the market?

4.98x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: NITINSPIN (₹49.3) is trading above our estimate of fair value (₹37.9)

Significantly Undervalued: NITINSPIN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NITINSPIN is good value based on its PE Ratio (5x) compared to the Luxury industry average (10.2x).

PE vs Market: NITINSPIN is good value based on its PE Ratio (5x) compared to the Indian market (13.2x).


Price to Earnings Growth Ratio

Low PEG Ratio: NITINSPIN is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: NITINSPIN is overvalued based on its PB Ratio (0.6x) compared to the IN Luxury industry average (0.6x).


Next Steps

Future Growth

How is Nitin Spinners forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

24.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NITINSPIN's forecast earnings growth (24.9% per year) is above the savings rate (7.6%).

Earnings vs Market: NITINSPIN's earnings (24.9% per year) are forecast to grow faster than the Indian market (18.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NITINSPIN's revenue (18.9% per year) is forecast to grow faster than the Indian market (11.4% per year).

High Growth Revenue: NITINSPIN's revenue (18.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if NITINSPIN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Nitin Spinners performed over the past 5 years?

10.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NITINSPIN's earnings have grown by 10.7% per year over the past 5 years.

Accelerating Growth: NITINSPIN's earnings growth over the past year (7.9%) is below its 5-year average (10.7% per year).

Earnings vs Industry: NITINSPIN earnings growth over the past year (7.9%) exceeded the Luxury industry 7.9%.


Return on Equity

High ROE: NITINSPIN's Return on Equity (12.3%) is considered low.


Return on Assets

ROA vs Industry: NITINSPIN has a higher Return on Assets than the Luxury industry average last year.


Return on Capital Employed

ROCE Improving: NITINSPIN's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Nitin Spinners's financial position?


Financial Position Analysis

Short Term Liabilities: NITINSPIN's short term assets (₹4.2B) exceeds its short term liabilities (₹2.9B)

Long Term Liabilities: NITINSPIN's short term assets (4.2B) do not cover its long term liabilities (6.6B)


Debt to Equity History and Analysis

Debt Level: NITINSPIN's debt to equity ratio (180.3%) is considered high

Reducing Debt: NITINSPIN's debt to equity ratio has increased from 110.6% to 180.3% over the past 5 years.

Debt Coverage: NITINSPIN's debt is not well covered by operating cash flow (11.9%).

Interest Coverage: NITINSPIN's interest payments on its debt are well covered by EBIT (3.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: NITINSPIN's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

What is Nitin Spinners's current dividend yield, its reliability and sustainability?

2.38%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%0.6%markettop25%2.5%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NITINSPIN's dividend (2.38%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: NITINSPIN's dividend (2.38%) is low compared to the top 25% of dividend payers in the Indian market (2.48%).

Stable Dividend: Whilst dividend payments have been stable, NITINSPIN has been paying a dividend for less than 10 years.

Growing Dividend: NITINSPIN's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (11.8%), NITINSPIN's dividend payments are thoroughly 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

Management

What is the CEO of Nitin Spinners's salary, the management and board of directors tenure and is there insider trading?

12.1yrs

Average board tenure


CEO

Dinesh Nolkha (49yo)

0yrs

Tenure

₹12,324,000

Compensation

Mr. Dinesh Nolkha, F.C.A., A.I.C.W.A, has been Managing Director of Nitin Spinners Ltd. since January 2006. Mr. Nolkha was instrumental in setting up Nitin Spinners Ltd. since 1992. Prior to setting up the ...


CEO Compensation Analysis

Compensation vs. Market: Dinesh's total compensation ($USD173.34K) is above average for companies of similar size in the Indian market ($USD28.94K).

Compensation vs Earnings: Dinesh's compensation has increased by more than 20% in the past year.


Board Age and Tenure

12.1yrs

Average Tenure

64yo

Average Age

Experienced Board: NITINSPIN's board of directors are seasoned and experienced ( 12.1 years average tenure).


Insider Trading

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


Recent Insider Transactions

Buy₹4,560,29326 Nov 18
Nitin Nolkha
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares52,000
Max Price₹87.70
Buy₹13,111,56920 Nov 18
Ratan Nolkha
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares150,000
Max Price₹87.41
Buy₹23,456,79520 Nov 18
Redial Trading & Investment Private Limited
EntityCompany
Shares269,000
Max Price₹87.20
Buy₹35,628,14919 Nov 18
Ratan Nolkha
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares404,000
Max Price₹88.19

Ownership Breakdown


Management Team

  • Dinesh Nolkha (49yo)

    MD & Executive Director

    • Tenure: 0yrs
    • Compensation: ₹12.32m
  • Ratan Nolkha (72yo)

    Executive Chairman

    • Tenure: 12.1yrs
    • Compensation: ₹13.26m
  • Nitin Nolkha (43yo)

    Executive Director

    • Tenure: 22yrs
    • Compensation: ₹11.52m
  • Sudhir Garg (53yo)

    Company Secretary

    • Tenure: 0yrs
  • K. Pareek (69yo)

    Vice President of Human Resources

    • Tenure: 0yrs
  • P. Maheshwari (57yo)

    Senior VP of Finance & CFO

    • Tenure: 0yrs
  • Umesh Toshniwal (47yo)

    Vice President of Marketing

    • Tenure: 0yrs
  • Sandeep Garg (48yo)

    President of Operations

    • Tenure: 12.5yrs
  • S.S Basu

    Senior Vice President of Processing

    • Tenure: 0yrs

Board Members

  • Yeshwantlal Shah (77yo)

    Independent Non-Executive Director

    • Tenure: 14.7yrs
    • Compensation: ₹150.00k
  • Dinesh Nolkha (49yo)

    MD & Executive Director

    • Tenure: 0yrs
    • Compensation: ₹12.32m
  • Ratan Nolkha (72yo)

    Executive Chairman

    • Tenure: 12.1yrs
    • Compensation: ₹13.26m
  • Nitin Nolkha (43yo)

    Executive Director

    • Tenure: 22yrs
    • Compensation: ₹11.52m
  • Rabisankar Chattopadhyay (62yo)

    Independent & Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: ₹160.00k
  • Aditi Mehta (66yo)

    Independent & Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: ₹140.00k

Company Information

Nitin Spinners Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nitin Spinners Limited
  • Ticker: NITINSPIN
  • Exchange: NSEI
  • Founded: 1992
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹2.772b
  • Shares outstanding: 56.22m
  • Website: https://www.nitinspinners.com

Number of Employees


Location

  • Nitin Spinners Limited
  • 16-17 Km. Stone
  • Chittor Road
  • Bhilwara
  • Rajasthan
  • 311025
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532698BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 2006
NITINSPINNSEI (National Stock Exchange of India)YesEquity SharesININRFeb 2006

Biography

Nitin Spinners Limited manufactures and sells cotton yarns and knitted fabrics in India. The company offers open end, multifold open end, ring spun combed, multifold ring spun, compact ring spun combed, mu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 12:44
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
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.