Nitin Spinners Detail
As per the Company website it is India’s leading manufacturer of Cotton yarns and Knitted fabrics..
As of now the combined installed capacity of Company is 2,23,056 spindles, 2,936 rotors manufacturing 50,000 tons of Yarns and threads per annum. The fabric unit has 63 knitting machines and annual production of 9,000 tons per annum.
The products from the Company are used in producing Apparels and Garments, Inner wear, Terry towels, Woven fabrics, Home furnishings, Carpets, Denims, Industrial fabrics, Medical textiles, mattresses, Socks and Tea bags.
The Company exports in more than 50 countries spread across 5 continents. It also has major presence in North India, Central India and some parts of East India. The Company manufacturing plant is located in Bhilwara so these regions can be easily catered.
I have shared long term price performance chart of the Company below.As per Dow theory of technical analysis price performance over a period of time reflects Company state.
Nitin Spinners Stock Performance
The stock got listed in year 2006 at listing price of 25. For next one decade (approx 8 years) the IPO investors did not make any money. The reason was simple the Stock prices were trading below IPO price.
We have seen this with so many hyped Companies. The stock price after listing corrects. Some times Companies set to exorbitant prices during IPO which is not justified by results posted subsequently.
Nevertheless recent bull run helped stock touch past the 100 mark giving good returns to investors. The stock also gives more than 1.5% of dividend at current market price which is good by any standard.
Nitin Spinners My Opinion
Nitin Spinners is a Textiles Company. It is in business of Cotton yarns and knitted fabrics. You may have noticed presence of Textile sector Companies in most of the top investors.
Top investors have faith in the sector and most of them have one or more stock from the sector in their portfolio. The reason is simple. Textile as a sector is evergreen sector. as long as human will wear cloths.
There are many players in the sector as well. So it is competitive sector. The sector will have demand domestically as well as international. The demand will continue to rise with time as well. The growth will be steady.
I have not invested in this sector due to competition in it. I will have to explore the sector better as many top investors have them in their portfolio. As of now I have not decided to include it in my portfolio but may include one after more analysis.
In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.