Small Cap Textile Stock That Soared Over 700% In 3-Yrs Can Rally 41%, Buy: Emkay Global

Emkay Global has picked small cap textile stock, Nitin Spinners and assigned buy call with target price of Rs 304 apiece. Current market price of the stock is Rs 216.20 apiece. If you buy Nitin Spinners share now, you can get likely return of 41%. According to the analyst, cotton prices (Shankar 6) have corrected from their peak levels of Rs1.1lakh/candy to Rs61,000/candy (implying Rs170/kg), upon arrival of the new crop and lower demand environment. The 10% import duty continues on cotton imports." Check details below:

Nitin Spinners Stock Performance & Return: Last trading price of Nitin Spinners is Rs 216.20 apiece on BSE. Its 52-week high price is Rs 279.95 apiece and 52-week low price is Rs 182.10 apiece, respectively. Its market capitalisation is Rs 1,215.48 crore. It soared 4% in last 1-month, 17% in last 3-months, declined 20% in last 1-year, and gave return of 718% in last 3-years.

Nitin Spinners Valuation: According to the Emkay Global, "We maintain our BUY rating with Dec-23 TP of Rs304, based on 8x P/E. We believe the cost pressure with respect to high raw-material cost, freight cost, and differential of Indian cotton over international cotton have turned positive, though (especially international) it remains a major concern."

Nitin Spinners About: The Company was established in 1992 and headquartered in Bhilwara (Rajasthan). It is India's leading manufacturer of Cotton Yarn, Knitted Fabrics and Finished Woven Fabrics, according to its official website.

Disclaimer: The stock has been picked from the brokerage report of Emkay Global. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.