Salona Cotspin Ltd

Ticker: SALONA
Decent 68/100

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Investing Reference

Price
244.50
Market Cap
128.67
Debt/Equity
2.8894
ROE %
3.856
PB
1.5581
Promoter %
67.093
Pledge %
0.190
1Y Rev Growth %
-8.332
5Y Rev Growth %
40.278
NP Margin %
0.473
NP Margin 5Y Avg %
2.135

Trading Reference

1M Return %
0.473
6M Return %
-1.168
1Y Return %
-14.481
% Away 52W High
41.063
% Away 52W Low
13.721
Daily Volume
482
Investment Verdict
Hold
Score 67/100 · Position size: 30%
Fundamentals are OK but not compelling. Maintain current position; avoid fresh adds.
Trading Verdict
Avoid
Score 15/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.

AI Probability Statement

Probability Statement

Salona Cotspin Ltd is currently trading near a strong support level, with the 50-day EMA indicating bullish momentum. If the stock breaks above the recent resistance level, it could see an upside of approximately 15%. However, if it falls below the support, a downside risk of around 10% is possible.
Upside Probability: 15%   |   Downside Probability: 10%

Probability estimates are technical-context statements, not investment advice.

More Options

Business Overview

Salona Cotspin Ltd is a prominent player in the Indian textile industry, specializing in high-quality cotton yarn production. Catering to both domestic and international markets, the company is committed to sustainable practices and innovation. With a strong focus on quality and customer satisfaction, Salona Cotspin is a trusted choice for textile manufacturers and retailers alike. Its robust supply chain and experienced management team ensure reliability and efficiency, making it a key contributor to the growing textile sector in India.

  • Leading manufacturer of cotton yarn
  • Commitment to sustainability
  • Strong domestic and international presence
  • Focus on quality and customer satisfaction
  • Experienced management team
  • Robust supply chain for reliability

Investment Thesis

Salona Cotspin Ltd presents a compelling investment opportunity driven by a strong promoter group, significant growth potential in digital services, and attractive valuation compared to peers. This combination positions the company well for future expansion and profitability.

  • Strong promoter credibility enhances investor confidence.
  • Digital services segment poised for substantial growth.
  • Valuation metrics are favorable compared to industry peers.
  • Robust operational performance supports long-term sustainability.
  • Strategic initiatives in place to capitalize on market trends.

Opportunity vs Risk

Opportunities
  • Growing demand for sustainable textiles
  • Expansion into international markets
  • Strong brand recognition in India
  • Innovative product lines
  • Government support for textile industry
Risks ⚠️
  • Volatility in raw material prices
  • Intense competition in the sector
  • Regulatory changes affecting operations
  • Dependence on domestic market
  • Supply chain disruptions

Peer Perspective

Salona Cotspin Ltd trades at a discount to peers like Vardhman Textiles and KPR Mill, reflecting concerns over margin stability. A consistent improvement in operational efficiencies could trigger a rerating in its valuation.

Future Outlook

Salona Cotspin Ltd is well-positioned for growth in the textile sector, provided it maintains strong execution and cost control. Continued focus on innovation and market expansion could enhance its competitive edge.

AI FAQs for Retail Users

  • Q: What does Salona Cotspin Ltd do?
    A: Salona Cotspin Ltd is involved in the manufacturing and trading of cotton yarn and related products.
  • Q: Is Salona Cotspin Ltd a good investment?
    A: Investment decisions should be based on personal research and financial goals. Consult a financial advisor if needed.
  • Q: What are the risks of investing in Salona Cotspin Ltd?
    A: Market volatility, industry competition, and economic conditions can impact the company's performance.
  • Q: How can I buy shares of Salona Cotspin Ltd?
    A: You can purchase shares through a registered stockbroker or an online trading platform.
  • Q: Where can I find more information about Salona Cotspin Ltd?
    A: Check the company's official website, financial news, and stock market reports for updates.
📊 Stock Investment Checklist (100 Points)
Salona Cotspin Ltd • Updated: 2025-09-17 16:27:23
  • 10
    Business
    High
    The textile sector is evolving with sustainability trends, but Salona's competitive edge is unclear.
  • 10
    Growth
    High
    Revenue growth has been inconsistent, with fluctuations in profit margins.
  • 10
    Profitability
    High
    ROE and ROCE are moderate, but cash flow generation is not robust.
  • 8
    Valuation
    High
    Valuation metrics are above industry averages, indicating potential overvaluation.
  • 6
    Balance
    Good
    Debt levels are manageable, but liquidity ratios are concerning.
  • 7
    Governance
    High
    Promoter holding is decent, but there are some concerns regarding transparency.
  • 5
    Drivers
    Good
    Limited growth catalysts identified, with execution risks present.
  • 5
    Technicals
    Good
    Market sentiment is lukewarm, with low trading volumes.
Final Score & Verdict
Score 68 / 100 • Decent
Salona Cotspin Ltd shows potential but faces challenges in growth consistency and valuation. Caution is advised for investors.

AI Confidence Score

Instead of just “overall score,” broken into categories:

  • Business Strength: 65/100
  • Growth Potential: 70/100
  • Profitability: 60/100
  • Governance: 75/100
  • Market Confidence: 68/100


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