NITIN SPINNERS - UPDATES

NITIN SPINNERS was first posted on this blog on 7^th September 2014. It was available in Rs.24/- to Rs.26/- range till October 2014. Recently it has touched Rs.76/-. Those investors who have invested after posting on this blog received good returns of 200% on their investment within one year. Now they can decide to invested or exit on their RISK appetite.

Company has posted net profit of Rs. 40.96 crores on sales of Rs 616.80 crores in FY 2014-15 and announced 10% (below expectation in view of EPS Rs.8.94) dividend. Net profit margin was 6.64% of the sales.

Recently company management has given guidance of sales of Rs.800/- to Rs.820/- crores in FY 2015-16. In view of profit margin around 6% of the sales net profit may be around Rs.48/- crores. Company has taken fresh term loan for expansion, therefore due to repayment obligation of interest, instalments and provision of depreciation on new fixed assets may result lower profit margin. Cotton prices are now bottomed out and any increase in cotton prices may also further hit the net profit margin.

Disclaimer: I am not a research analyst. Please take own decision after read the results, annual reports.