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Salona Cotspin Limited (IN:SALONA)
:SALONA
India Market
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Salona Cotspin Limited (SALONA) AI Stock Analysis

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IN:SALONA

Salona Cotspin Limited

(SALONA)

Rating:50Neutral
Price Target:
₹244.00
▼(-0.97% Downside)
Salona Cotspin Limited's overall stock score reflects a combination of financial challenges, bearish technical indicators, and a high valuation. The company's high leverage and cash flow variability are significant concerns, while the technical analysis suggests a bearish trend. The stock appears overvalued with a low dividend yield, making it less attractive for income-focused investors.

Salona Cotspin Limited (SALONA) vs. iShares MSCI India ETF (INDA)

Salona Cotspin Limited Business Overview & Revenue Model

Company DescriptionSalona 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 MoneySalona 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
Salona Cotspin Limited exhibits a mixed financial performance with certain strengths and weaknesses. The company faces challenges in revenue growth and profitability margins, compounded by high leverage on the balance sheet. Cash flow variability indicates potential liquidity issues, pointing towards a need for improved cash management. Despite these challenges, there is some stability in operational efficiency and a gradual strengthening of equity.
Income Statement
60
Neutral
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
55
Neutral
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
50
Neutral
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue6.81B6.62B7.22B4.87B6.47B2.30B
Gross Profit813.50M730.64M514.88M824.34M1.10B485.63M
EBITDA318.78M321.22M304.79M351.26M374.58M148.78M
Net Income69.49M31.33M61.27M175.69M197.89M62.00M
Balance Sheet
Total Assets0.003.54B3.67B2.70B2.28B1.38B
Cash, Cash Equivalents and Short-Term Investments24.06M21.14M11.52M134.00M4.02M71.65M
Total Debt0.002.39B2.57B1.57B1.39B714.84M
Total Liabilities-842.33M2.72B2.87B1.96B1.71B1.00B
Stockholders Equity842.33M825.77M797.68M741.80M572.40M380.17M
Cash Flow
Free Cash Flow0.00187.61M-840.64M-85.92M-547.00M-301.92M
Operating Cash Flow0.00450.40M-119.04M-50.15M-347.82M-237.47M
Investing Cash Flow0.00-262.64M-719.09M-33.88M-195.08M-52.88M
Financing Cash Flow0.00-187.22M838.08M83.94M541.57M290.48M

Salona Cotspin Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price246.40
Price Trends
50DMA
252.61
Negative
100DMA
253.47
Negative
200DMA
262.40
Negative
Market Momentum
MACD
-1.79
Negative
RSI
49.52
Neutral
STOCH
42.70
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 246.4 is above the 20-day moving average (MA) of 242.57, below the 50-day MA of 252.61, and below the 200-day MA of 262.40, indicating a neutral trend. The MACD of -1.79 indicates Negative momentum. The RSI at 49.52 is Neutral, neither overbought nor oversold. The STOCH value of 42.70 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$20.49B14.78-2.88%3.11%1.86%-5.76%
54
Neutral
₹1.64B61.00
-4.83%5827.08%
50
Neutral
₹1.30B54.36
0.40%-18.46%-62.32%
₹1.04B7.97
46
Neutral
₹1.47B
-26.76%-25.97%
₹1.01B28.18
59
Neutral
₹1.23B26.56
5.90%58.84%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:SALONA
Salona Cotspin Limited
246.40
-42.80
-14.80%
IN:AMARJOTHI
Amarjothi Spinning Mills Limited
153.90
-64.75
-29.61%
IN:LOYALTEX
Loyal Textile Mills Limited
306.00
-268.40
-46.73%
IN:PRITI
Priti International Ltd.
74.64
-72.25
-49.19%
IN:SURYALAXMI
Suryalakshmi Cotton Mills Ltd.
65.64
-25.67
-28.11%
IN:ZENITHEXPO
Zenith Exports Limited
321.05
52.15
19.39%
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.Date of analysis: Aug 26, 2025