Salona Cotspin Limited (SALONA) AI Stock Analysis

• Market Cap: ₹1.23B
• Dividend Yield: 0.43%
• Average Volume (3M): 1.45K
• Price to Earnings (P/E): 51.4
• Beta (1Y): 0.68
• Revenue Growth: -18.46%
• EPS Growth: -62.32%
• Country: IN
• Employees: 248
• Sector: Consumer Goods
• Sector Strength: N/A
• Industry: Apparel - Manufacturers
• EPS (TTM): 2.91
• Shares Outstanding: 5,262,400
• 10 Day Avg. Volume: 494
• 30 Day Avg. Volume: 1,445
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ₹253.00
• Price Target Upside: 8.33% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 50 Neutral
• Price Target: ₹253.00 ▲(8.33% Upside)

Salona Cotspin Limited's overall stock score reflects a mix of financial challenges and technical weaknesses. The company's high leverage and cash flow variability are significant concerns, while the technical indicators suggest a bearish trend. The valuation metrics indicate potential overvaluation, further impacting the score.

Salona Cotspin Limited Business Overview & Revenue Model

Company Description

Salona Cotspin Limited (SALONA) is an Indian company operating in the textile industry. It is primarily engaged in the manufacturing and distribution of cotton yarn and fabrics. The company focuses on producing high-quality yarns that are used in various textile applications, catering to both domestic and international markets. Salona Cotspin Limited is known for its commitment to quality and sustainable manufacturing processes.

How the Company Makes Money

Salona Cotspin Limited makes money through the production and sale of cotton yarn and fabrics. Its revenue model is centered around manufacturing high-quality yarns that are sold to textile manufacturers and retailers. The company generates revenue by supplying its products to both domestic clients and international markets, leveraging its expertise in textile manufacturing. Key revenue streams include the sale of yarns used in apparel, home textiles, and industrial applications. Salona Cotspin Limited may also engage in partnerships with other textile companies to expand its market reach and enhance its product offerings. The company's earnings are influenced by factors such as the demand for textile products, raw material costs, and its ability to maintain efficient production processes.

Salona Cotspin Limited Financial Statement Overview

Summary

The financial performance of Salona Cotspin Limited is mixed. Revenue growth and profitability margins face challenges, compounded by high leverage in the balance sheet. Cash flow variability indicates potential liquidity issues, despite some stability in operational efficiency and a gradual strengthening of equity.

Income Statement

The company's revenue has shown a mixed trend with fluctuations in growth rates. The gross profit margin has been declining, indicating increased cost pressures. Net profit margin has also shown volatility, with a notable drop in recent years, reflecting challenges in maintaining profitability. Despite this, EBIT and EBITDA margins have remained relatively stable, suggesting operational efficiency.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, indicating significant leverage which could pose risks in financial stability. However, stockholders' equity has been increasing, which is a positive sign. The equity ratio has improved over time, reflecting a better capital structure, but overall leverage remains a concern.

Cash Flow

Cash flow statements indicate variability in free cash flow, with some periods showing negative free cash flow, reflecting challenges in cash generation. The operating cash flow to net income ratio has been inconsistent, suggesting potential difficulties in translating income into cash flow. Free cash flow to net income ratio has also seen fluctuations, highlighting cash management issues.

Breakdown	Mar 2025	Mar 2024	Mar 2022	Mar 2023	Mar 2021
Income Statement
Total Revenue	6.62B	7.22B	6.47B	4.87B	2.30B
Gross Profit	730.64M	514.88M	1.10B	824.34M	485.63M
EBITDA	321.22M	304.79M	374.58M	351.26M	148.78M
Net Income	31.33M	61.27M	197.89M	175.69M	62.00M
Balance Sheet
Total Assets	3.54B	3.67B	2.28B	2.70B	1.38B
Cash, Cash Equivalents and Short-Term Investments	21.14M	11.52M	4.02M	134.00M	71.65M
Total Debt	2.39B	2.57B	1.39B	1.57B	714.84M
Total Liabilities	2.72B	2.87B	1.71B	1.96B	1.00B
Stockholders Equity	825.77M	797.68M	572.40M	741.80M	380.17M
Cash Flow
Free Cash Flow	187.61M	-840.64M	-547.00M	-85.92M	-301.92M
Operating Cash Flow	450.40M	-119.04M	-347.82M	-50.15M	-237.47M
Investing Cash Flow	-262.64M	-719.09M	-195.08M	-33.88M	-52.88M
Financing Cash Flow	-187.22M	838.08M	541.57M	83.94M	290.48M

Salona Cotspin Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 233.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SALONA, the sentiment is Negative. The current price of 233.55 is below the 20-day moving average (MA) of 257.96, below the 50-day MA of 256.47, and below the 200-day MA of 267.44, indicating a bearish trend. The MACD of -3.43 indicates Positive momentum. The RSI at 35.28 is Neutral, neither overbought nor oversold. The STOCH value of 17.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SALONA.

Salona Cotspin Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SURYALAXMI	59 Neutral	₹1.29B	27.60		―	1.23%	0.71%
LOYALTEX	57 Neutral	₹1.67B	―		―	-26.76%	-25.97%
Sector *	57 Neutral	$3.22B	9.46	-34.32%	2.94%	-25.56%	-353.61%
SALONA	50 Neutral	₹1.23B	51.41		0.43%	-18.46%	-62.32%
ZENITHEXPO	46 Neutral	₹1.22B	41.26		―	-4.83%	5827.08%