Nitin Spinners profit up 155% to Rs 88.7 crore; debt rises

NITINSPIN Nitin Spinners Limited reported Q2 FY27 standalone net profit of Rs 88.7 crore on 31 October, up 155 percent, on revenue of Rs 985.2 crore, up 29.6 percent. Q2 FY27 numbers (standalone): Revenue: Rs 985.2 crore, up 29.6% from Rs 760.1 crore EBITDA: Rs 175.5 crore, up 76.3%; margin 17.8%, against 13.1% PAT: Rs 88.7 crore, up 154.9% from Rs 34.8 crore; margin 9.0% Capital work in progress: Rs 915.2 crore, up from Rs 102.4 crore in March Management credited yarn realisations and capacity use. This is one quarter of margin data, and the balance sheet is moving with it. Non-current borrowings rose to Rs 1,183.3 crore from Rs 545.2 crore. The 35 million metre fabric expansion has not started commercial production; it is on trial output of 4.1 million metres. Nitin Spinners [NITINSPIN][***** last traded at Rs 656.35 on StockGro, 5.4 percent below its 52-week high of Rs 693.87, and up 99.8 percent over a year. P/E 13.9; sector P/E near 26. My view: hold, not a fresh entry at this price. A P/E of 13.9 against a sector near 26 rests on one quarter’s profit, which has been volatile. It has roughly doubled in a year, so I would not add before the expansion runs. Holders stay; exit on a close below Rs 593, a level I derived from StockGro’s one-month change because I found no sourced support. Fresh money waits for a Q3 EBITDA margin at or above 17 percent and borrowings that stop rising. What would change my mind: a Q3 margin below 13 percent, or a slip in the expansion’s commercial start. Next trigger: Q3 FY27 results, date not yet sourced. Disclosure: Vijay Kumar Gupta, SEBI Registered Research Analyst, INH000020226, Vijay Gupta Advisory. SEBI registration and NISM certification do not guarantee performance or assure returns. Securities markets are subject to market risks. No holdings in the subject company.