JAI SHREE GANESH MAHARAJ KI
I AM
STARTING THIS BLOG ON GANESH CHATURDASHI. LORD GANESH MAY BLESS ALL READERS AND
FOLLOWERS THROUGHOUT THE YEAR.
NITIN SPINNERS- A CONSTANT PERFORMER, GOOD FUTURE
NITIN
SPINNERS making cotton yarn and also having knitting facility. Company is
doubling its capacity and production from expanded capacity will start in last
quarter of this FY. Company is constantly improving its performance as per
given below:
Mar '14
|
Mar '13
|
Mar '12
|
Mar '11
|
Mar '10
|
|
Net worth
|
131.55
|
100.79
|
86.66
|
86.35
|
79.61
|
Total Debt
|
144.17
|
179.18
|
223.81
|
283.94
|
308.51
|
Total Income
|
494.61
|
431.80
|
418.00
|
397.25
|
301.43
|
Net Profit
|
34.78
|
14.14
|
0.30
|
6.74
|
0.67
|
Earning Per Share (Rs)
|
7.59
|
3.08
|
0.07
|
1.47
|
0.15
|
Equity
Dividend (%)
|
7.50
|
0.00
|
0.00
|
0.00
|
0.00
|
Earlier company was
under CDR. Now the company is out of CDR and it has paid “right to recompense” amount
approximate Rs.15 crores to its lenders.
It is reducing debts
to improve profitability. Debts almost reduced 50% in last four years.
Rating agency CARE
has upgraded the rating of the
Company on the basis of financial performance for the F.Y. 2013-14. This
will help the company to bargain the ROI from the lenders.
Net profit margin of
the company is around 7%. Now profit is increased from Rs 0.67 crores to Rs 34.78
crores in last four years.
Company will able to
reduce the debts on faster way in view of increasing net profit; that will further
improve Net Profit of the company.
Company has paid first
time dividend this year which shows confidence of management for future.
Company will start
production in Q4 of this year. Full effect of expanded capacity will be visible
in next FY 2014-15. Future outlook of the company is looking good.
Price of Cotton (raw
material) is stable and future price trend is downward.
Company is STAR
EXPORT HOUSE exporting 75% of its production. Govt policy is favourable of the
company. New govt has already announced new textile policy for increase the textile
exports from India.
Promoters holding in
the company is around 64% and it is increasing on quarterly basis. In non
promoter category no share holder having more than 1% share. Now rally in small
caps started; Mutual Funds, HNI are looking the shares which has strong fundamental
available at lower price because other shares already run up and chances of apparition
in those shares are limited.
Friends, these are my observations. Choice is yours to
analyse the facts and BUY or not.
