Nitin Spinners Limited (NITINSPIN) AI Stock Analysis

• Market Cap: ₹19.94B
• Dividend Yield: 0.94%
• Average Volume (3M): 5.36K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 1.20
• Revenue Growth: 1.79%
• EPS Growth: 7.55%
• Country: IN
• Employees: 7,142
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Apparel - Manufacturers
• EPS (TTM): 7.90
• Shares Outstanding: 56,220,000
• 10 Day Avg. Volume: 4,582
• 30 Day Avg. Volume: 5,360
• PEG Ratio: 0.32
• Price to Book (P/B): 1.42
• Price to Sales (P/S): 0.56
• P/FCF Ratio: 6.49
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 27.5
• Revenue Forecast (FY): ₹32.00B

• Rating: 67 Neutral
• Price Target: ₹405.00 ▲(26.52% Upside)
• Action: Downgraded Date: 10/31/25
• Date: Action: Downgraded 10/31/25

Nitin Spinners Limited shows strong financial performance with impressive revenue and cash flow growth, which is the most significant factor in its overall score. However, technical analysis indicates a bearish trend, which negatively impacts the stock's attractiveness. The valuation is reasonable, providing a balanced view of the stock's potential. The absence of recent earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Strong free cash flow growth

A 143.7% jump in free cash flow and OCF/net income >1 indicate the business converts earnings to cash reliably. Durable cash generation supports capex, working capital, debt service and shareholder returns, improving resilience through textile cycles and funding strategic investments.

Healthy operating and gross margins

Sustained gross margin near 28% and double-digit EBITDA margin reflect efficient production and cost control in yarn/fabric manufacturing. Margin durability provides buffers against commodity swings and funds reinvestment, helping maintain competitiveness in downstream markets.

Stable capital structure with positive ROE

Moderate leverage with nearly half the capital base as equity and a mid-teens ROE indicates the company earns reasonable returns on shareholder capital while retaining financial stability. This balance supports sustainable growth without aggressive refinancing risk in the near term.

Negative Factors

Input-cost sensitivity (cotton, energy)

The core yarn and fabric business is structurally exposed to cotton, fiber and energy price swings. Even with current margins, sustained commodity or energy cost increases can quickly erode profitability and cash flow unless the company secures pass-through pricing, hedges, or shifts product mix.

Conflicting revenue trend signals

Divergent top-line metrics suggest uneven demand, timing differences, or one-off items that reduce visibility into sustainable growth. This inconsistency complicates forecasting and strategic planning, increasing execution risk over the coming quarters until trends converge.

Moderate leverage could limit flexibility

A debt-to-equity near 0.9 implies ongoing interest and principal obligations that can constrain discretionary spending. In a cyclical textile industry, moderate leverage reduces room for aggressive expansion or margin support during downturns, requiring careful cash and debt management.

Nitin Spinners Limited Business Overview & Revenue Model

Company Description

Nitin Spinners Limited manufactures and sells cotton and blended yarns, and knitted and woven fabrics in India. The company offers ring spun carded, ring spun, compact ring spun combed, compact ring spun, blended ring spun, fancy slub, compact fancy slub, core spun, compact core spun, S and Z twist, organic cotton, BCI/TBC certified, Supima and Giza certified, contamination free, zero and eli twist, and open end yarns; poly /cotton blended open end yarns; combed, compact, and carded multi-fold ring spun yarns; and yarns made out of recycled fibers, as well as dye able cheese/cones used in woven and knitted apparel, furnishing fabrics, denims, terry towel, medical fabrics, tea bags, and bed linen. It also provides single jersey, Lycra blended, pique structured, interlock structured, rib structured, and 3 T fleece fabrics used in inner, comfort, sports, baby, and winter wears. In addition, the company offers finished and printed woven fabrics used in fashion and image wears, uniforms, health care apparels, hotel apparels, industrial and protective apparels, and defense apparels. It also exports its products to approximately 50 countries. The company was incorporated in 1992 and is headquartered in Bhilwara, India.

How the Company Makes Money

Nitin Spinners generates revenue primarily through the production and sale of yarn and fabric. The company has established several key revenue streams, including the sale of cotton yarn, blended yarn, and specialty yarns that cater to specific customer needs. Additionally, NITINSPIN capitalizes on its manufacturing capabilities by exporting products to international markets, which enhances its earnings through foreign sales. The company also benefits from strategic partnerships with textile distributors and manufacturers, allowing for a broader reach and increased sales volume. Factors such as economies of scale in production, adherence to quality standards, and a strong brand reputation contribute to NITINSPIN's financial success.

Nitin Spinners Limited Financial Statement Overview

Summary

Nitin Spinners Limited demonstrates a strong financial position with impressive revenue and free cash flow growth, supported by efficient cost management and stable profitability margins. While the debt levels are moderate, careful monitoring is necessary to maintain financial stability. Overall, the company is well-positioned in its industry, showing robust growth potential and operational efficiency.

Income Statement

The income statement shows a strong revenue growth, with a 14.73% increase from the previous year. Gross profit margin is solid at 27.89%, indicating efficient production cost management. The net profit margin is 5.31%, reflecting moderate profitability. EBIT and EBITDA margins are 9.79% and 14.26% respectively, suggesting effective operational efficiency. Overall, the company demonstrates positive growth and profitability trends.

Balance Sheet

The balance sheet reveals a debt-to-equity ratio of 0.89, indicating a moderate level of leverage which suggests a balanced approach to financing. However, the equity ratio is 47.98%, reflecting a stable financial base. Return on Equity stands at 13.38%, showcasing the company's capability to generate profits from shareholders' investments. The company's financial position appears stable, though attention to debt levels is advised.

Cash Flow

Cash flow analysis shows a remarkable improvement in free cash flow, with a growth rate of 143.71% from the previous year. The operating cash flow to net income ratio is 1.75, indicating strong cash generation relative to reported earnings. The free cash flow to net income ratio is 1.63, underscoring effective cash management. These metrics highlight a robust cash flow situation, supporting the company's growth and operational needs.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	32.34B	33.06B	29.06B	23.85B	26.64B	16.09B
Gross Profit	8.98B	9.22B	6.21B	7.76B	9.02B	4.28B
EBITDA	4.52B	4.75B	3.77B	3.00B	6.49B	2.59B
Net Income	1.67B	1.75B	1.32B	1.65B	3.26B	688.72M
Balance Sheet
Total Assets	25.37B	27.32B	27.17B	22.18B	18.24B	16.76B
Cash, Cash Equivalents and Short-Term Investments	59.38M	123.13M	663.00K	17.88M	2.60M	206.00K
Total Debt	9.15B	11.65B	13.39B	9.80B	6.89B	9.62B
Total Liabilities	11.68B	14.21B	15.70B	11.89B	9.49B	11.13B
Stockholders Equity	13.69B	13.11B	11.46B	10.29B	8.76B	5.63B
Cash Flow
Free Cash Flow	3.13B	2.86B	-6.53B	-2.42B	3.39B	1.42B
Operating Cash Flow	3.80B	3.07B	1.63B	1.94B	4.31B	1.55B
Investing Cash Flow	-840.48M	-215.84M	-4.26B	-4.33B	-859.05M	-112.23M
Financing Cash Flow	-3.03B	-2.79B	2.62B	2.39B	-3.45B	-1.44B

Nitin Spinners Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 320.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NITINSPIN, the sentiment is Neutral. The current price of 320.1 is below the 20-day moving average (MA) of 367.11, below the 50-day MA of 342.72, and below the 200-day MA of 346.62, indicating a neutral trend. The MACD of 4.18 indicates Positive momentum. The RSI at 47.61 is Neutral, neither overbought nor oversold. The STOCH value of 29.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:NITINSPIN.

Nitin Spinners Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NITINSPIN	67 Neutral	₹19.94B	9.96	―	0.94%	1.79%	7.55%
RAMRAT	64 Neutral	₹27.98B	22.96	―	0.39%	19.75%	13.42%
PRAKASH	63 Neutral	₹21.12B	7.56	―	1.10%	-12.15%	-6.47%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
MADRASFERT	48 Neutral	₹10.00B	127.23	―	―	3.38%	0.68%
SUTLEJTEX	47 Neutral	₹4.77B	-8.15	―	―	-1.07%	-5.16%
MOL	45 Neutral	₹10.65B	-115.81	―	―	―	―