Shares of Nitin Spinners Limited were down around 3 percent today and currently trades at Rs 243. Ace Investor Ms. Dolly Khanna has invested in the stock and holds 747,793 shares totaling a holding value of approximately Rs 18.2 crores.
The company, recently, announced results for the last quarter as well as for FY22-23 and details of the same have been mentioned later on in the report. The company’s Board also recommended dividend of Rs 2.50 per share (25 percent of its face value of Rs 10) for the financial year 2022-23. Payment of the same is subject to the shareholder’s approval.
Keeping a purview of 2 years, the stock has been able to deliver Multibagger returns of around 137 percent. It means that if someone would have invested Rs 1,00,000 in the stock, it would have converted to Rs 2,37,000 within a period of 2 years.
Nitin Spinners Limited is a company based in India that is engaged in manufacturing textile products such as cotton knitted and cotton yarn fabric. The company’s product portfolio comprises Knitted Fabrics, Yarn, Woven Fabrics, and others. The key revenue driver for the company is the ‘yarn’ products. It carries out sales within the country and also exports its products to other countries.
Having a walkthrough of the quarterly numbers reported, the operating revenues as well as net profits have increased with the former moving from Rs 537 crores in Q3 v/s Rs 655 crores in Q4 and the latter took a shift from Rs 32 crores to Rs 39 crores during the same period.
On a contrasting note, the above-mentioned metrics, on a YoY basis, have underperformed with the operating revenues going down from Rs 2,692 crores during FY21-22 to Rs 2,407 crores in FY22-23. Net profit figures of the company, keeping the timeframe the same, went down from Rs 326 crores to Rs 165 crores exhibiting a fall of around 50 percent.
Since the past 3 financial years, the company has been successful in improving its profitability ratios such as the return on equity (ROE) and return on capital employed (ROCE). The ROE percentages have gone up from 13.03 percent during FY20-21 to 45.32 percent in FY21-22 and the ROCE numbers have increased from 10.99 percent to 36.35 percent during the same time horizon.
The net profit margin, in congruence with the metrics mentioned above, has been on the rise with the latest movement being from 4.24 percent in FY20-21 to 12.11 percent in FY21-22.
According to the latest data available for the last quarter of FY22-23, the promoters hold a 56.41 percent stake, and Foreign Institutional Investors (FIIs) hold a 2.4 percent stake in the company.
Written by Amit Madnani
