Buy Nitin Spinners; target of Rs 740: East India Securities

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

live

• bselive
• nselive

Volume

Todays L/H

More

×

East India Securitie's report on Nitin Spinners

Nitin Spinners Ltd (NSL) continued its stellar performance in Q4FY22. Sales at Rs7,691 mn - up 50.3% YoY & 9.1% QoQ, EBIDTA at Rs1,674 mn - up 60.7% YoY but down 6.0% QoQ, EBIDTA Margin 21.8% up 140bps but down 349bps QoQ PAT at Rs855mn - up 99.4% YoY but down 8.4% QoQ, The growth in the business led to near 100% capacity utilization of all products. Gross margins remain well supported, however declined QoQ due to lag in pass through of higher cotton prices. Nitin reported a cash profit of Rs1070 mn. Exports contributed ~73% of revenue for FY22 as the company was able to get higher margins.

Outlook

We retain our Buy rating on the stock with a TP of Rs740 (10X FY24 EPS).

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Read More