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Salona Cotspin Limited (IN:SALONA)
:SALONA
India Market
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Salona Cotspin Limited (SALONA) AI Stock Analysis

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IN:SALONA

Salona Cotspin Limited

(SALONA)

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Neutral 48 (OpenAI - Gpt-5.6Sol)
Rating:48Neutral
Price Target:
₹299.00
▲(22.92% Upside)
Action:Reiterated
Date:09/17/26
The score is held back primarily by weak and deteriorating profitability alongside elevated leverage, which increases risk in a downturn. Technicals are supportive with price above key moving averages and positive MACD, but momentum is stretched (RSI ~70.8). Valuation is a further headwind due to a high P/E and minimal dividend yield.
Positive Factors
Improved Cash Generation
The recent shift to positive operating and free cash flow improves Salona’s ability to fund operations, service obligations, and support growth internally. If sustained across textile cycles, stronger cash conversion could reduce dependence on external financing and improve financial resilience.
Negative Factors
Recent Revenue Contraction
The consecutive annual revenue declines signal weaker recent demand or realized selling conditions for Salona’s textile output. Persistent contraction can reduce fixed-cost absorption, weaken operating leverage, and make it harder to restore earnings without a durable recovery in orders and volumes.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Cash Generation
The recent shift to positive operating and free cash flow improves Salona’s ability to fund operations, service obligations, and support growth internally. If sustained across textile cycles, stronger cash conversion could reduce dependence on external financing and improve financial resilience.
Read all positive factors

Salona Cotspin Limited (SALONA) vs. iShares MSCI India ETF (INDA)

Salona Cotspin Limited Business Overview & Revenue Model

Company Description
Based in Coimbatore, India, Salona Cotspin Limited, established in 1994, specializes in the manufacturing and global distribution of textile goods. The company's diverse product range includes various cotton and blended yarns, such as ring-spun, o...
How the Company Makes Money
SALONA generates revenue primarily from the sale of its textile products, chiefly cotton yarn (and any other manufactured textile outputs it produces). Its earnings are driven by order volumes and realized selling prices for these products, which ...

Salona Cotspin Limited Financial Statement Overview

Summary
Mixed fundamentals: revenue has declined in the last two years and net profitability has compressed sharply (net margin falling to ~0.5% in FY2025 with very low earnings in FY2026). Balance sheet risk is high with elevated leverage (debt-to-equity ~2.0x–3.2x historically) and deteriorating ROE. Offsetting positives include a notable turnaround in cash generation, with operating cash flow and free cash flow turning strongly positive in FY2025–FY2026, though durability remains uncertain given earlier volatility.
Income Statement
46
Neutral
Balance Sheet
34
Negative
Cash Flow
52
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue6.33B5.94B6.62B6.74B4.87B6.47B
Gross Profit826.98M728.65M730.64M514.88M824.34M1.10B
EBITDA358.57M348.75M321.22M304.79M351.26M374.58M
Net Income22.86M15.61M31.33M61.27M175.69M197.89M
Balance Sheet
Total Assets0.003.04B3.54B3.64B2.70B2.28B
Cash, Cash Equivalents and Short-Term Investments22.58M22.58M21.14M11.52M8.04M4.02M
Total Debt0.001.90B2.39B2.57B1.57B1.39B
Total Liabilities-837.76M2.20B2.72B2.84B1.96B1.71B
Stockholders Equity837.76M837.76M825.77M797.68M741.80M572.40M
Cash Flow
Free Cash Flow121.48M485.44M187.61M-840.64M-85.92M-547.00M
Operating Cash Flow207.62M596.51M450.40M-119.04M-50.15M-347.82M
Investing Cash Flow-85.43M-101.86M-262.64M-719.09M-33.88M-195.08M
Financing Cash Flow-121.42M-494.89M-187.22M838.08M83.94M541.57M

Salona Cotspin Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price243.25
Price Trends
50DMA
260.39
Positive
100DMA
266.19
Negative
200DMA
263.98
Negative
Market Momentum
MACD
3.09
Positive
RSI
48.14
Neutral
STOCH
51.82
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SALONA, the sentiment is Negative. The current price of 243.25 is below the 20-day moving average (MA) of 269.57, below the 50-day MA of 260.39, and below the 200-day MA of 263.98, indicating a neutral trend. The MACD of 3.09 indicates Positive momentum. The RSI at 48.14 is Neutral, neither overbought nor oversold. The STOCH value of 51.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SALONA.

Salona Cotspin Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
₹2.28B22.240.38%-0.02%-26.96%
56
Neutral
₹1.92B8.261.05%-2.19%132.56%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
49
Neutral
₹1.11B27.121.02%-1.58%-14.14%
48
Neutral
₹1.41B60.550.26%0.65%-4.33%
45
Neutral
₹224.29M-7.483.57%-30.67%-22908.11%
43
Neutral
₹987.85M-1.701.15%-38.89%-4.55%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:SALONA
Salona Cotspin Limited
263.35
12.01
4.78%
IN:BASML
Bannari Amman Spinning Mills Limited
23.75
-3.50
-12.85%
IN:LAXMICOT
Laxmi Cotspin Ltd.
12.72
-11.76
-48.04%
IN:LOYALTEX
Loyal Textile Mills Limited
203.00
-112.00
-35.56%
IN:SHIVATEX
Shiva Texyarn Limited
162.05
-26.28
-13.96%
IN:SURYALAXMI
Suryalakshmi Cotton Mills Ltd.
58.90
-6.99
-10.61%

Salona Cotspin Limited Corporate Events

Salona Cotspin Sets Dividend Record Date and Reshapes Board Ahead of September AGM
Aug 13, 2026
Salona Cotspin Limited’s board has approved the unaudited financial results for the quarter ended 30 June 2026 and set 23 September 2026 as the date for its 32nd annual general meeting, to be held via video conferencing. The company has fixe...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 17, 2026