Buy Nitin Spinners, target price Rs 295: ICICI Direct

ICICI Direct has buy call on Nitin Spinners with a target price of Rs 295. The current market price of Nitin Spinners is Rs 263.05. Time period given by analyst is 3 months when Nitin Spinners price can reach defined target. ICICI Direct recommended to keep stop loss at Rs 240.

Nitin Spinners, incorporated in the year 1992, is a Small Cap company (having a market cap of Rs 1482.80 Crore) operating in Textiles sector.

Nitin Spinners key Products/Revenue Segments include Yarn, Fabric, Others, Other Operating Revenue, Sale of services for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-03-2023, the company has reported a Standalone Total Income of Rs 656.16 Crore, up 22.08 % from last quarter Total Income of Rs 537.49 Crore and down -14.74 % from last year same quarter Total Income of Rs 769.58 Crore. Company has reported net profit after tax of Rs 38.54 Crore in latest quarter.

The company’s top management includes Mr.R L Nolkha, Mr.Dinesh Nolkha, Mr.Nitin Nolakha, Mr.Rohit Swadheen Mehta, Dr.R Chattopadhyay, Mrs.Aditi Mehta. Company has Kalani & Co. as its auditors. As on 31-03-2023, the company has a total of 6 Crore shares outstanding.

Investment Rationale
Structurally, the share price had undergone strong base in the Rs 190-240 range in the vicinity of long term support of 52-weekEMA. In the process, it retraced the CY21 rally by just 60% over 15month period, a sign of inherent strength in long term trend. The brokerage expects the share price to head towards Rs 300, which is 80%retracement of February–June2022 correction over the next few months.

Promoter/FII Holdings
Promoters held 56.41 per cent stake in the company as of 31-Mar-2023, while FIIs owned 2.4 per cent, DIIs 6.3 per cent.