Salona Cotspin Limited (SALONA) AI Stock Analysis

• Market Cap: ₹1.40B
• Dividend Yield: 0.36%
• Average Volume (3M): 231.00
• Price to Earnings (P/E): 104.7
• Beta (1Y): 0.80
• Revenue Growth: -13.03%
• EPS Growth: -81.40%
• Country: IN
• Employees: 248
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.62
• 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: 54 Neutral
• Price Target: ₹295.00 ▲(14.34% Upside)
• Action: Reiterated Date: 04/02/26
• Date: Action: Reiterated 04/02/26

The score is primarily held back by mixed financial performance (margin pressure, high leverage, and inconsistent free cash flow). Technicals are moderately supportive with the stock trading above major moving averages, but neutral momentum limits upside conviction. Valuation is a key drag due to the very high P/E and low dividend yield.

Positive Factors

Product / Market Position

Salona’s focus on premium cotton yarn and sales to both domestic and export markets supports durable demand diversification. Serving garment makers and fabric producers creates recurring B2B relationships, reducing reliance on single customers and improving resilience to local cyclical swings over a multi-month horizon.

Negative Factors

High Leverage

Significant leverage raises refinancing and interest-rate sensitivity risk and limits strategic flexibility. With high debt levels, periods of margin pressure or demand weakness could strain covenant headroom and cash available for operations, making the capital structure a persistent vulnerability.

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 kn...

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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 kn...

How the Company Makes Money

Salona Cotspin Limited generates revenue primarily through the manufacturing and sale of cotton yarn and textile products. Its core revenue stream involves supplying cotton yarn to garment manufacturers, textile companies, and other industry playe...

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Salona Cotspin Limited generates revenue primarily through the manufacturing and sale of cotton yarn and textile products. Its core revenue stream involves supplying cotton yarn to garment manufacturers, textile companies, and other industry playe...

Salona Cotspin Limited Financial Statement Overview

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	6.34B	6.62B	6.74B	4.87B	6.47B	2.30B
Gross Profit	922.72M	730.64M	514.88M	824.34M	1.10B	485.63M
EBITDA	339.29M	321.22M	304.79M	351.26M	374.58M	148.78M
Net Income	12.66M	31.33M	61.27M	175.69M	197.89M	62.00M
Balance Sheet
Total Assets	3.55B	3.54B	3.64B	2.70B	2.28B	1.38B
Cash, Cash Equivalents and Short-Term Investments	28.38M	21.14M	11.52M	8.04M	4.02M	5.32M
Total Debt	2.37B	2.39B	2.57B	1.57B	1.39B	766.61M
Total Liabilities	2.70B	2.72B	2.84B	1.96B	1.71B	1.00B
Stockholders Equity	851.75M	825.77M	797.68M	741.80M	572.40M	380.17M
Cash Flow
Free Cash Flow	121.48M	187.61M	-840.64M	-85.92M	-547.00M	-301.92M
Operating Cash Flow	207.62M	450.40M	-119.04M	-50.15M	-347.82M	-237.47M
Investing Cash Flow	-85.43M	-262.64M	-719.09M	-33.88M	-195.08M	-52.88M
Financing Cash Flow	-121.42M	-187.22M	838.08M	83.94M	541.57M	290.48M

Salona Cotspin Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 258.00
• 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:SALONA, the sentiment is Neutral. The current price of 258 is below the 20-day moving average (MA) of 268.12, below the 50-day MA of 260.17, and above the 200-day MA of 257.35, indicating a neutral trend. The MACD of 1.77 indicates Positive momentum. The RSI at 49.71 is Neutral, neither overbought nor oversold. The STOCH value of 37.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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%
LOYALTEX	56 Neutral	₹957.03M	-1.31	―	―	-30.97%	80.99%
ZENITHEXPO	55 Neutral	₹1.01B	172.50	―	―	8.45%	―
SALONA	54 Neutral	₹1.40B	104.73	―	0.36%	-13.03%	-81.40%
SURYALAXMI	52 Neutral	₹1.02B	53.55	―	―	4.60%	226.64%
PRITI	49 Neutral	₹524.65M	106.63	―	―	―	―

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