Salona Cotspin Limited (IN:SALONA)
:SALONA
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Salona Cotspin Limited
(SALONA)
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Rating:44Neutral
Price Target:
₹267.00
▲(3.49% Upside)
Action:Reiterated
Date:06/01/26
The score is held down primarily by weak financial quality (thin net profits, declining recent revenue) and elevated leverage, with valuation also a major negative due to an extremely high P/E. Recent improvements in operating and free cash flow and generally neutral technicals provide partial support but are not strong enough to offset the core risks.
Positive Factors
Improving cash generation
The shift to solid operating cash flow and a large year-over-year jump in free cash flow through FY2026 materially strengthens internal funding capacity. Over a multi-month horizon this improves ability to fund working capital and maintenance capex, lowers immediate refinancing needs, and supports gradual deleveraging if sustained.
Negative Factors
Elevated leverage
High debt relative to equity materially constrains financial flexibility and raises refinancing and interest-rate vulnerability. Even with some debt decline in FY2026, limited equity growth means the company has a thin capital cushion to absorb demand shocks or margin compression over the next several months and may face higher funding costs.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving cash generation
The shift to solid operating cash flow and a large year-over-year jump in free cash flow through FY2026 materially strengthens internal funding capacity. Over a multi-month horizon this improves ability to fund working capital and maintenance capex, lowers immediate refinancing needs, and supports gradual deleveraging if sustained.
Read all positive factors
Salona Cotspin Limited (SALONA) vs. iShares MSCI India ETF (INDA)
Market Cap
₹1.40B
Dividend Yield0.36%
Average Volume (3M)231.00
Price to Earnings (P/E)89.0
Beta (1Y)0.62
Revenue Growth-10.32%
EPS Growth-50.09%
CountryIN
Employees248
SectorConsumer Defensive
Sector Strength42
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)N/A
Shares Outstanding5,262,400
10 Day Avg. Volume96
30 Day Avg. Volume231
Financial Highlights & Ratios
PEG Ratio-1.80
Price to Book (P/B)1.68
Price to Sales (P/S)0.24
P/FCF Ratio2.91
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Salona Cotspin Limited Business Overview & Revenue Model
Company Description
Based in Coimbatore, India, Salona Cotspin Limited, established in 1994, specializes in the manufacturing and global distribution of textile goods. The company's diverse product range includes various cotton and blended yarns, such as ring-spun, o...
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...
Salona Cotspin Limited Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
34
Negative
Cash Flow
52
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.34B | 5.94B | 6.62B | 6.74B | 4.87B | 6.47B |
| Gross Profit | 922.72M | 728.65M | 730.64M | 514.88M | 824.34M | 1.10B |
| EBITDA | 339.29M | 343.12M | 321.22M | 304.79M | 351.26M | 374.58M |
| Net Income | 12.66M | 15.61M | 31.33M | 61.27M | 175.69M | 197.89M |
Balance Sheet | ||||||
| Total Assets | 3.55B | 3.04B | 3.54B | 3.64B | 2.70B | 2.28B |
| Cash, Cash Equivalents and Short-Term Investments | 28.38M | 22.58M | 21.14M | 11.52M | 8.04M | 4.02M |
| Total Debt | 2.37B | 1.90B | 2.39B | 2.57B | 1.57B | 1.39B |
| Total Liabilities | 2.70B | 2.20B | 2.72B | 2.84B | 1.96B | 1.71B |
| Stockholders Equity | 851.75M | 837.76M | 825.77M | 797.68M | 741.80M | 572.40M |
Cash Flow | ||||||
| Free Cash Flow | 121.48M | 485.44M | 187.61M | -840.64M | -85.92M | -547.00M |
| Operating Cash Flow | 207.62M | 596.51M | 450.40M | -119.04M | -50.15M | -347.82M |
| Investing Cash Flow | -85.43M | -101.86M | -262.64M | -719.09M | -33.88M | -195.08M |
| Financing Cash Flow | -121.42M | -494.89M | -187.22M | 838.08M | 83.94M | 541.57M |
Salona Cotspin Limited Technical Analysis
Negative
258.00
Price Trends
277.90
Negative
267.38
Positive
262.73
Positive
Market Momentum
-0.52
Positive
42.57
Neutral
14.62
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 258 is below the 20-day moving average (MA) of 281.15, below the 50-day MA of 277.90, and below the 200-day MA of 262.73, indicating a neutral trend. The MACD of -0.52 indicates Positive momentum. The RSI at 42.57 is Neutral, neither overbought nor oversold. The STOCH value of 14.62 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
57 Neutral | ₹2.01B | 18.95 | ― | 0.33% | 5.52% | -15.33% | |
52 Neutral | ₹1.99B | 15.54 | ― | ― | -1.92% | 66.45% | |
50 Neutral | ₹1.06B | -1.35 | ― | ― | -37.08% | -41.67% | |
50 Neutral | ₹1.04B | 33.42 | ― | ― | 0.37% | -14.25% | |
44 Neutral | ₹1.40B | 88.99 | ― | 0.36% | -10.32% | -50.09% | |
42 Neutral | ₹252.76M | -21.45 | ― | ― | -0.21% | 75.58% |
* Consumer Defensive Sector Average
IN:SALONA
Salona Cotspin Limited
270.00
10.08
3.88%
IN:BASML
Bannari Amman Spinning Mills Limited
26.87
-7.31
-21.39%
IN:LAXMICOT
Laxmi Cotspin Ltd.
14.27
-13.01
-47.69%
IN:LOYALTEX
Loyal Textile Mills Limited
216.50
-83.50
-27.83%
IN:SHIVATEX
Shiva Texyarn Limited
156.10
-52.18
-25.05%
IN:SURYALAXMI
Suryalakshmi Cotton Mills Ltd.
58.00
-15.89
-21.50%
Salona Cotspin Limited Corporate Events
Salona Cotspin Publishes Notices on Special Window for Physical Share Transfers
May 23, 2026
Salona Cotspin Limited has notified the stock exchange that it has published newspaper advertisements regarding the proposed transfer of shares in physical form, in line with a recent SEBI circular that allows a special window for re-lodgement of ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.