ScoreWhy is Salona Cotspin Ltd. ?
1
High Debt company with Weak Long Term Fundamental Strength
- Poor long term growth as Net Sales has grown by an annual rate of 12.81% and Operating profit at 6.68% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) of 2.57 times
2
With a growth in Net Sales of 77.98%, the company declared Very Positive results in Jun 26
- PBT LESS OI(Q) At Rs 2.77 cr has Grown at 161.9% (vs previous 4Q average)
- PAT(Q) At Rs 2.26 cr has Grown at 479.5% (vs previous 4Q average)
- ROCE(HY) Highest at 9.06%
3
With ROCE of 8.9, it has a Attractive valuation with a 1.2 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 10.27%, its profits have fallen by -3.8%
4
Majority shareholders : Promoters
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Salona Cotspin should be less than 10%
- Overall Portfolio exposure to Garments & Apparels should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Garments & Apparels)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Salona Cotspin for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Salona Cotspin
10.27%
0.19
53.72%
Sensex
-4.26%
-0.32
13.42%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
12.81%
EBIT Growth (5y)
6.68%
EBIT to Interest (avg)
3.08
Debt to EBITDA (avg)
5.76
Net Debt to Equity (avg)
2.24
Sales to Capital Employed (avg)
2.18
Tax Ratio
59.21%
Dividend Payout Ratio
17.01%
Pledged Shares
0.28%
Institutional Holding
0
ROCE (avg)
10.98%
ROE (avg)
14.31%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
63
Industry P/E
28
Price to Book Value
1.72
EV to EBIT
13.25
EV to EBITDA
9.37
EV to Capital Employed
1.22
EV to Sales
0.52
PEG Ratio
NA
Dividend Yield
0.37%
ROCE (Latest)
8.93%
ROE (Latest)
2.73%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bullish
RSI
No Signal
Bullish
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend24What is working for the Company
PBT LESS OI(Q)
At Rs 2.77 cr has Grown at 161.9% (vs previous 4Q average
PAT(Q)
At Rs 2.26 cr has Grown at 479.5% (vs previous 4Q average
ROCE(HY)
Highest at 9.06%
OPERATING PROFIT TO INTEREST(Q)
Highest at 1.97 times
DEBT-EQUITY RATIO(HY)
Lowest at 2.26 times
DEBTORS TURNOVER RATIO(HY)
Highest at 7.49 times
NET SALES(Q)
At Rs 196.60 cr has Grown at 32.4% (vs previous 4Q average
PBDIT(Q)
Highest at Rs 10.68 cr.
EPS(Q)
Highest at Rs 4.30
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
Here's what is working for Salona Cotspin
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 2.77 cr has Grown at 161.9% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 1.06 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 2.26 cr has Grown at 479.5% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 0.39 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Operating Profit to Interest - Quarterly
Highest at 1.97 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Sales - Quarterly
Highest at Rs 196.60 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 196.60 cr has Grown at 32.4% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 148.46 CrMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 10.68 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 2.77 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 2.26 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 4.30
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Debt-Equity Ratio - Half Yearly
Lowest at 2.26 times
in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Debtors Turnover Ratio- Half Yearly
Highest at 7.49 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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