This Small Cap Multibagger Textile Stock Recommends Final Dividend: Check Details

Nitin Spinners Ltd is a textiles-focused small-cap business with a market capitalization of Rs 1,293 crore. The company is a significant producer of Cotton Yarn, Knitted Fabrics, and Finished Woven Fabrics in India. The Board of Directors of the Company proposed a final dividend of 25% or Rs. 2.50 per share of Rs. 10/- each, for the year ending March 31, 2022, at the company's board meeting held on May 12, 2022.

The company has confirmed the same by informing BSE that "Pursuant to Regulation 30 & 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations"), we wish to inform you that the Board of Directors of the Company in its Meeting held on 12th May,2022 inter-alia recommended final Dividend @ 25% i.e. Rs. 2.50 per share of Rs. 10/- each for the year ended 31st March, 2022, subject to approval of Shareholders. This is in addition to lnterim Dividend of Rs. 1.50 per share paid during the month of February, 22. Accordingly, dividend for the FY 2021-22 aggregates to Rs. 4.00 per share of Rs. 10/- each."

The company also re-appoints M/s Kalani & Co., Statutory Auditors, for a second five-year period, commencing with the 30th Annual General Meeting and ending with the 35th Annual General Meeting, which will be held in 2027.

The company posted a net profit of Rs 85.47 crore in Q4 FY22, up from Rs 42.85 crore in Q4 FY21, while revenue from operations increased by 50% year on year to Rs 769.58 crore, up from Rs 511.65 in the previous quarter. In Q4 FY22, total expenses grew by 43% to Rs 637.14 crore, compared to Rs 445.31 crore in Q4 FY21. Profit before tax (PBT) for the fourth quarter of FY22 reached Rs 132.43 crore, up 99 per cent from Rs 66.44 crore in the fourth quarter of FY21. In Q4 FY-22, the company's annual net profit amounted to Rs 326.13 Cr, up from Rs 68.87 Cr in Q4 FY-21.

In Thursday's closing session the stock closed at a market price of Rs 230, a rise of +18.65 (8.82%) compared to the previous closing of Rs 211.35. The stock has gained 5.84 per cent in the past five days and has lost -13.63 per cent in the previous month. In the previous six months, the stock has dropped -6.43 percent, and year-to-date (YTD), it has plummeted -15.46 per cent. However, the stock has risen from Rs 98.80 on May 14, 2021 to Rs 230 today, signifying a multibagger return of 132.79 per cent in just one year. The stock reached a 52-week high of Rs 345 on February 8, 2022, and a 52-week low of Rs 96.25 on May 14, 2021, with the current market price trading 33 per cent below its 52-week high. The P/B ratio of 2.28 indicates that the stock is currently cheap. However, due to the high amount of debt, the stock has a 58.4 per cent ROE, signalling a possible risk. Nitin Spinners Ltd. is now trading above the 5 day moving averages but below the 20 days, 50 day, 100 day, and 200-day moving averages at the current market price.