Buy Nitin Spinners; target of Rs 302: Emkay Global Financial

Emkay Global Financial is bullish on Nitin Spinners has recommended buy rating on the stock with a target price of Rs 302 in its research report dated February 04, 2023.

Broker Research

February 09, 2023 / 11:45 IST

26 Aug, 2025 12:21

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Emkay Global Financial's research report on Nitin Spinners

For Q3FY23, Nitin Spinners reported 6% sales growth QoQ due to increased utilization with a slight improvement in demand scenario. Spinning utilization grew from 65% to 80%. EBITDAM stood at 11.2%, in line with our estimate and was flat QoQ. PAT for the quarter came in at Rs316mn, up 8% QoQ. Correction in domestic cotton price, lower differential between domestic and international cotton, and some improvement in demand scenario point towards improving fundamentals for the industry and the company. Post 3Q, spinning utilization has hit 90%, weaving is at 100%, though knitting demand remains subdued, leading to utilization at 45-50%.

Outlook

We maintain our Buy rating on the stock as improving fundamentals of the sector and capacity addition of ~40% would lead to re-rating for the stock.

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