Salona Cotspin Limited (SALONA) AI Stock Analysis

• Market Cap: ₹1.37B
• Dividend Yield: 0.36%
• Average Volume (3M): 231.00
• Price to Earnings (P/E): 108.1
• Beta (1Y): 0.96
• Revenue Growth: -13.03%
• EPS Growth: -81.40%
• Country: IN
• Employees: 248
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Manufacturers
• EPS (TTM): 2.03
• Shares Outstanding: 5,262,400
• 10 Day Avg. Volume: 96
• 30 Day Avg. Volume: 231
• PEG Ratio: -0.82
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 0.19
• P/FCF Ratio: 6.72
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: ₹280.00 ▲(8.53% Upside)

The overall stock score of 55 reflects a mixed financial performance with significant challenges in profitability and cash flow management. The technical analysis shows a positive price trend, but bearish momentum indicators suggest caution. The high P/E ratio indicates potential overvaluation, and the low dividend yield offers limited income potential. These factors collectively contribute to a cautious outlook for the stock.

Positive Factors

Operational Efficiency

Stable EBIT and EBITDA margins indicate operational efficiency, which can support profitability even amid revenue fluctuations.

Equity Strengthening

Increasing stockholders' equity suggests a strengthening capital base, improving financial resilience and potential for future growth.

Diverse Revenue Streams

Diverse revenue streams from yarns and services help mitigate market risks and enhance stability, supporting long-term growth.

Negative Factors

Revenue Decline

A decline in revenue growth indicates potential challenges in market demand or competitive positioning, affecting long-term prospects.

High Leverage

High leverage can strain financial stability, limiting flexibility and increasing risk, especially in volatile market conditions.

Profit Margin Decline

Declining profit margins suggest increased cost pressures, which can erode profitability and competitiveness over time.

Salona Cotspin Limited Business Overview & Revenue Model

Company Description

Salona Cotspin Limited produces and sells cotton yarn, knitted fabrics, and garments in India. The company offers ring spin, open end, slub, hank, and compact cotton and blend yarn products. It also provides grey, dyed, and printed fabrics; and knitwear apparels. The company also exports its products. Salona Cotspin Limited was incorporated in 1994 and is based in Coimbatore, India.

How the Company Makes Money

Salona Cotspin Limited generates revenue primarily through the sale of its cotton yarns, which are sold to textile manufacturers and retailers both in India and globally. The company benefits from a diverse customer base, which helps mitigate risks associated with market fluctuations. In addition to yarn production, SALONA may also engage in value-added services such as custom spinning and dyeing, which further enhance its revenue streams. The company likely has partnerships with suppliers of raw cotton to ensure a steady supply of high-quality materials, and it may also collaborate with distributors to expand its market reach. Overall, the combination of direct product sales, value-added services, and strategic partnerships contributes significantly to SALONA's earnings.

Salona Cotspin Limited Financial Statement Overview

Summary

Salona Cotspin Limited exhibits a mixed financial performance with strengths in operational efficiency and equity strengthening. However, challenges in revenue growth, profitability margins, high leverage, and cash flow variability indicate potential financial stability and liquidity issues.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.29B	6.62B	6.74B	4.87B	6.47B	2.30B
Gross Profit	892.00M	730.64M	514.88M	824.34M	1.10B	485.63M
EBITDA	332.44M	321.22M	304.79M	351.26M	374.58M	148.78M
Net Income	23.90M	31.33M	61.27M	175.69M	197.89M	62.00M
Balance Sheet
Total Assets	0.00	3.54B	3.64B	2.70B	2.28B	1.38B
Cash, Cash Equivalents and Short-Term Investments	21.14M	21.14M	11.52M	8.04M	4.02M	5.32M
Total Debt	0.00	2.39B	2.57B	1.57B	1.39B	766.61M
Total Liabilities	-825.77M	2.72B	2.84B	1.96B	1.71B	1.00B
Stockholders Equity	825.77M	825.77M	797.68M	741.80M	572.40M	380.17M
Cash Flow
Free Cash Flow	0.00	187.61M	-840.64M	-85.92M	-547.00M	-301.92M
Operating Cash Flow	0.00	450.40M	-119.04M	-50.15M	-347.82M	-237.47M
Investing Cash Flow	0.00	-262.64M	-719.09M	-33.88M	-195.08M	-52.88M
Financing Cash Flow	0.00	-187.22M	838.08M	83.94M	541.57M	290.48M

Salona Cotspin Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 258.00
• 50DMA: Negative
• 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:SALONA, the sentiment is Positive. The current price of 258 is below the 20-day moving average (MA) of 259.22, below the 50-day MA of 263.34, and above the 200-day MA of 255.18, indicating a neutral trend. The MACD of -5.43 indicates Positive momentum. The RSI at 50.98 is Neutral, neither overbought nor oversold. The STOCH value of 25.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:SALONA.

Salona Cotspin Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SALONA	55 Neutral	₹1.37B	108.07	―	0.36%	-13.03%	-81.40%
SURYALAXMI	55 Neutral	₹1.08B	19.64	―	―	4.60%	226.64%
ZENITHEXPO	55 Neutral	₹1.13B	19.17	―	―	8.45%	―
PRITI	52 Neutral	₹748.59M	26.43	―	―	―	―
LOYALTEX	46 Neutral	₹976.05M	-6.42	―	―	-30.97%	80.99%

Salona Cotspin Limited Corporate Events

Salona Cotspin Reports ROC Order Over Minor Filing Delay, No Financial Impact

Salona Cotspin Limited has disclosed that it received an order from the Registrar of Companies, Coimbatore, for a procedural lapse under the Companies Act, 2013 related to a two-day delay in filing E-form MGT-15 for the financial year 2021-22. The company clarified that the order does not impose any monetary penalty on either the company or its officers and that the action has no significant impact on its financials, operations, or other business activities, indicating that the issue is a minor compliance matter rather than a substantive regulatory setback.