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Salona Cotspin Limited
(SALONA)
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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)
Market Cap
₹1.41B
Dividend Yield0.26%
Average Volume (3M)89.00
Price to Earnings (P/E)60.6
Beta (1Y)0.62
Revenue Growth0.65%
EPS Growth-4.33%
CountryIN
Employees623
SectorGeneral
Sector StrengthN/A
IndustryManufacturing - Textiles
Share Statistics
EPS (TTM)4.35
Shares Outstanding5,262,400
10 Day Avg. Volume76
30 Day Avg. Volume89
Financial Highlights & Ratios
PEG Ratio-1.80
Price to Book (P/B)1.68
Price to Sales (P/S)0.24
P/FCF Ratio2.91
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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
Income Statement
46
Neutral
Balance Sheet
34
Negative
Cash Flow
52
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.33B | 5.94B | 6.62B | 6.74B | 4.87B | 6.47B |
| Gross Profit | 826.98M | 728.65M | 730.64M | 514.88M | 824.34M | 1.10B |
| EBITDA | 358.57M | 348.75M | 321.22M | 304.79M | 351.26M | 374.58M |
| Net Income | 22.86M | 15.61M | 31.33M | 61.27M | 175.69M | 197.89M |
Balance Sheet | ||||||
| Total Assets | 0.00 | 3.04B | 3.54B | 3.64B | 2.70B | 2.28B |
| Cash, Cash Equivalents and Short-Term Investments | 22.58M | 22.58M | 21.14M | 11.52M | 8.04M | 4.02M |
| Total Debt | 0.00 | 1.90B | 2.39B | 2.57B | 1.57B | 1.39B |
| Total Liabilities | -837.76M | 2.20B | 2.72B | 2.84B | 1.96B | 1.71B |
| Stockholders Equity | 837.76M | 837.76M | 825.77M | 797.68M | 741.80M | 572.40M |
Cash Flow | ||||||
| Free Cash Flow | 121.48M | 485.44M | 187.61M | -840.64M | -85.92M | -547.00M |
| Operating Cash Flow | 207.62M | 596.51M | 450.40M | -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 | -187.22M | 838.08M | 83.94M | 541.57M |
Salona Cotspin Limited Technical Analysis
Negative
243.25
Price Trends
260.39
Positive
266.19
Negative
263.98
Negative
Market Momentum
3.09
Positive
48.14
Neutral
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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | ₹2.28B | 22.24 | ― | 0.38% | -0.02% | -26.96% | |
56 Neutral | ₹1.92B | 8.26 | ― | 1.05% | -2.19% | 132.56% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
49 Neutral | ₹1.11B | 27.12 | ― | 1.02% | -1.58% | -14.14% | |
48 Neutral | ₹1.41B | 60.55 | ― | 0.26% | 0.65% | -4.33% | |
45 Neutral | ₹224.29M | -7.48 | ― | 3.57% | -30.67% | -22908.11% | |
43 Neutral | ₹987.85M | -1.70 | ― | 1.15% | -38.89% | -4.55% |
* General Sector Average
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.