This Dolly Khanna stock has jumped over 3.5-times in 3 years: Check reasons why analyst sees 100% upside potential

Dolly Khanna portfolio: Ace investor Dolly Khanna-owned textile stock – Nitin Spinners has the potential to double from current levels in the long-term, as the company has reported an improved set of numbers on a sequential basis for the October-December quarter in the financial year 2022-23 (Q3FY23).

The analysts at SMIFS Limited, a domestic brokerage firm, maintained ‘Buy’ rating on the stock with a target price of Rs 407 per share, implying over 101 per cent upside in Nitin Spinners shares from Friday’s closing of Rs 202 apiece.

The counter jumped over 4 per cent on Monday to touch an intraday high of Rs 210.35 per share on the BSE. At the market close, Nitin Spinners shares ended flat with a positive bias to Rs 203.5 per share on the BSE, as compared to a 0.55 per cent fall in the S&P BSE Sensex.

Nitin Spinners share: Why are brokerage upbeat?

India cotton prices narrowed down against global prices, Awanish Chandra Executive Director, SMIFS Limited said adding that some recovery at the exports front has already started.

“Slowdown in the US market and geo-political situation in the European region is still posing challenges however the company has started hitting higher utilization levels in spinning and woven fabric businesses,” Chandra further added, while being bullish on the stock.

In Q3, Nitin Spinners registered sequential growth of 6.2/5.4/8.5 per cent at sales/EBITDA/PAT levels with stable margins amid improved utilization in yarn and woven fabric segments. Besides, the firm’s capital expenditure plan of Rs 9.5 billion is on track and may support growth during FY24 and FY25.

Dolly Khanna Stock

Renowned investor Dolly Khanna has 7,79,793 equity shares or around 1.4 per cent stakes in Nitin Spinners, as per the latest shareholding pattern of the company available on the BSE. She has marginally trimmed stakes in the small-cap stock by nearly 0.1 per cent in December 2022 quarter.

The Chennai-based investor publicly holds 15 stocks with a net worth of over Rs 226.2 crore as of February 6, 2023, according to stock analysis portal trendlyne.com.

Nitin Spinners Share Price History

The stock of Nitin Spinners has jumped more than 3.5 times in the last three years. To put it in perspective, Rs 1 lakh invested in this counter would have turned Rs 3.5 lakhs during the said period.

However, the counter has dipped nearly 40 per cent in the last one-year, against a five per cent rise in the S&P BSE Sensex. While the scrip was flat in the last six months as compared to a three per cent surge in the benchmark index.

So far in the last five sessions, the shares of Nitin Spinners were up over one per cent versus two per cent growth in the BSE Sensex during the same period.