Nitin Spinners Limited (NITINSPIN) AI Stock Analysis

• Market Cap: ₹21.07B
• 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: ₹407.00 ▲(27.15% 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

Free cash flow strength

A 143.71% rise in free cash flow and OCF/net income >1 indicate high cash conversion quality. Durable cash generation funds capex, working capital and deleveraging without relying on equity, providing long-term optionality for reinvestment, dividends or debt reduction.

Sustainable operating margins

Consistently healthy gross and EBITDA margins reflect efficient production and cost control in yarn/fabric manufacturing. These structural margins support repeatable operating cash flow, enabling reinvestment in capacity and resilience across textile cycles over the medium term.

Moderate leverage with solid ROE

A debt-to-equity below 1 combined with near-48% equity ratio and 13.38% ROE signals prudent financing and the ability to generate decent shareholder returns. This balance supports financial flexibility to fund operations while limiting excessive leverage risk over time.

Negative Factors

Modest net profitability

A 5.31% net margin provides a limited buffer against input cost and demand swings in commodity-linked textiles. Structural pressure on margins from cotton, energy or labor increases could compress earnings materially, reducing sustainable free cash flow unless offset by price or efficiency gains.

Negative EPS growth trend

Deeply negative reported EPS growth indicates volatile or declining per-share earnings year-over-year. Persistent negative EPS growth can erode investor returns, reduce retained earnings available for reinvestment, and constrain strategic initiatives unless earnings normalize.

Input cost and FX exposure

The business is exposed to commodity (cotton/fiber) price swings and export currency movements, yet export share and customer concentration are not disclosed. This structural exposure increases revenue and margin volatility and reduces visibility into lasting demand diversification.

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 makes money primarily by manufacturing textile intermediate goods and selling them to customers such as fabric processors, garment manufacturers, exporters, and other textile industry participants. Its main revenue streams are: (1) Yarn sales: The company manufactures yarn (including cotton and blended varieties) and earns revenue by selling finished yarn in bulk. Pricing and margins are influenced by input costs (e.g., cotton/fiber), energy and operating costs, product mix (count/quality/blends), and demand from weaving/knitting and garment segments. (2) Knitted fabric sales: The company also produces knitted fabric and earns revenue from the sale of fabric to customers who further process it into apparel or other textile products. Fabric revenues depend on capacity utilization, fabric specifications/quality, and prevailing market prices. Additional earnings can come from export sales where realizations are affected by foreign exchange movements and global demand conditions; however, specific export share, customer concentration, or named partnerships are not available here and are therefore null.

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: Positive
• 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 Positive. The current price of 320.1 is below the 20-day moving average (MA) of 369.03, below the 50-day MA of 343.86, and below the 200-day MA of 346.56, indicating a bullish trend. The MACD of 4.82 indicates Positive momentum. The RSI at 58.92 is Neutral, neither overbought nor oversold. The STOCH value of 49.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	₹21.07B	9.96	―	0.94%	1.79%	7.55%
RAMRAT	64 Neutral	₹29.03B	22.96	―	0.39%	19.75%	13.42%
PRAKASH	63 Neutral	₹21.33B	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	₹10.03B	127.23	―	―	3.38%	0.68%
SUTLEJTEX	47 Neutral	₹4.77B	-8.15	―	―	-1.07%	-5.16%
MOL	45 Neutral	₹10.55B	-115.81	―	―	―	―