Thursday, 11 May 2017

Why this midcap company could be spinning its way to the top??

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For Nitin Spinners Ltd (NSL), a Bhilwara-based textile company, growth prospects look bright on the back of capacity additions and sale of high-value products. It manufactures cotton yarn and knitted cotton fabric. Barring a few major players, the USD 108 billion Indian textile industry is made up of numerous small and mid-size companies, NSL being one of them.

Although NSL doesn’t have a unique product line or process, what puts it on the map for investors is its performance potential for the forthcoming years.

Capacity expansion completion

NSL added 72,960 spindles in February 2017 to take its overall spinning capacity from 150,096 (at the start of FY17) to 223,056. As a result, the company’s cotton yarn manufacturing capacity increased from 38,000 tons per annum (TPA) at the end of FY16 to 58,500 TPA (including 8,500 TPA-allocated to the knitted fabric segment) at the end of the recently concluded fiscal year.

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