Nitin Spinners Limited

Consumer Cyclical — Textile Manufacturing · NSE

₹654.00+₹32.30 (+5.20%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:48 pm

Understanding the Business

Company site ↗

The 60-second version of Nitin Spinners Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Nitin Spinners Limited manufactures and sells cotton and blended yarns, knitted fabrics, and finished woven fabrics in India and internationally.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees6,638

Annual revenue₹3,190 Cr

How does it make money?

Turns over ₹3,190 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation. Each of its 6,638 employees supports ₹48.1 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹48.1 lakh

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 14.0% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE25.9%

What is the outlook?

4 analysts covering the stock expect revenue to grow about 16.4% and earnings to grow about 8.8% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+16.4%

Est. earnings growth+8.8%

Analysts4

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +34% while net margin moved -19% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+34%

Margin effect-19%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

• Revenue CAGR of 10.2% is steady
✗ Profit CAGR of only 2.5%
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows

Quality vs. Valuation

Company Quality

56/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

51/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

18.3x

3Y Median

13.6x

40 monthly readings · mean 14.2x · range 9.7x–20.7x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 34% above its 3y median of 13.6x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 74% below the peer median of 69.2x.

vs. its own history

Expensive

13.6x median over 40 months · +34%

vs. sector peers

Cheap

69.2x median of 4 peers · -74%

vs. generic bands

Fair

15x–35x

EV/EBITDA

10.7x

PEG

7.26

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 12.4% to 14.1% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 16.0% to 12.1% — each rupee of shareholder capital earns less than it did.

Red Flags

1 item require attention · 1 high

🔴Receivables growing faster than salesFinancial
Receivables up 94% against revenue up 34% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 12.4% to 14.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 74% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 94% against revenue up 34%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 34% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 16.0% to 12.1%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 8% a year✓ 10.2% CAGR
Latest reported year was 10.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 12%✓ 14.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✓ ₹119 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 11%✓ 14.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✗ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 7 neutral · 0 weak

Market Cap

₹3,677 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

18.3x

Fair

Fairly valued against the generic band

P/B Ratio

2.50x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹35.83

Profitable

Profitable on a per-share basis

ROE

12.1%

Moderate

Moderate capital efficiency

ROCE

14.0%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.76x

Moderate

Moderate leverage

Revenue Growth (YoY)

10.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

83.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.46%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹119 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

12.5x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

13.5%

Average

Average margins

Net Margin

6.4%

Average

Average bottom-line conversion

Current Ratio

1.53

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.39

Defensive

Steadier than the market

52W Range Position

96%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

612.7 / 608.6

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

61.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,385 Cr	₹2,906 Cr	₹3,283 Cr	₹3,190 Cr	+10.2%
EBITDA	₹295 Cr	₹373 Cr	₹467 Cr	₹450 Cr	+15.1%
EBITDA Margin	12.4%	12.8%	14.2%	14.1%	—
PAT (Net Profit)	₹165 Cr	₹132 Cr	₹175 Cr	₹178 Cr	+2.5%
EPS	₹29.32	₹23.39	₹31.2	₹31.58	+2.5%
ROE	16.0%	11.5%	13.4%	12.1%	—
ROCE	12.4%	12.3%	15.4%	14.0%	—
Total Debt	₹980 Cr	₹1,339 Cr	₹1,165 Cr	₹1,124 Cr	+4.7%
Free Cash Flow	-₹242 Cr	-₹653 Cr	₹286 Cr	₹119 Cr	—

🟢 Revenue has grown at 10.2% a year over 3 years.

🟢 EBITDA has grown at 15.1% a year over 3 years.

🟢 EBITDA Margin has risen from 12.4% to 14.1% over 3 years (+1.7 pts).

🟢 PAT (Net Profit) has grown at 2.5% a year over 3 years.

🟢 EPS has grown at 2.5% a year over 3 years.

🔴 ROE has fallen from 16.0% to 12.1% over 3 years (-3.9 pts).

🟢 ROCE has risen from 12.4% to 14.0% over 3 years (+1.5 pts).

🔴 Total Debt has grown at 4.7% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹242 Cr to ₹119 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,915 Cr

Total Liabilities

₹1,444 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹411 Cr

Capex

-₹292 Cr

Shareholding (proxy)

Institutional Holding

15.1%

Insider Holding

56.8%

Corporate Actions

Dividend Rate

₹3

Ex-Dividend Date

11 Sept 2026

Analyst Consensus

Recommendations

4 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹799.75

+22.3% vs CMP

Target Range

₹700 – ₹987

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

1 positive2 mixed3 general

Nitin Spinners Share Price hits 52-week high on stock action

Univest, 16 Oct

Nitin Spinners: This textile stock hit new high, zoomed 104% from Jan low

Business Standard, 25 Aug

NITINSPIN Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Nitin Spinners Ltd is Rated Hold by MarketsMOJO

MarketsMojo, 15 Oct

Nitin Spinners Q1FY27 net profit jumps 84% as margins expand

scanx.trade, 09 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Stocks to buy: Arvind, Nitin Spinners, Sanathan Textiles - Emkay bullish on three textile stocks

Livemint, 09 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality · Growth · Profitability · Valuation · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Debt / EBITDA stays below 2x · see Key things to watch ↑