In this blog post on “Akshar Spintex Share Price Forecast”, our focus will be on delving into the projected Akshar Spintex Share Price Forecast and Targets spanning the years 2024 to 2030. As we navigate through the intricate landscape of market dynamics, our objective is to unravel complexities and synthesize insights. Through this exploration, we aim to offer a nuanced perspective on the future trajectory of Akshar Spintex Ltd., shedding light on the factors that may influence its course in the years to come.
Join us in this comprehensive exploration, where we dissect the intricacies of market trends to provide valuable insights into the prospective trajectory of Akshar Spintex Ltd and its impact on stakeholders.
Table of Contents
Akshar Spintex Ltd Brief History and Business Model
The company started in 2013 in Gujarat and quickly established itself as a leading manufacturer of high-quality cotton yarn. In the initial days they recognized the growing demand for reliable and ethically-sourced cotton yarn, and committed themselves with the requirement.
Also, Akshar Spintex’s business model compromises several important elements, including:
- Spinning: Their core expertise lies in spinning high-quality cotton yarn for a range of counts (16’s to 44’s Ne). This versatility allows them to cater to diverse customer needs, from weaving to knitting applications.
- Value-added services: Recognizing the evolving market, Akshar Spintex expanded beyond basic yarn production. They now offer a range of value-added services like carded, combed, slub, core, doubling, and fancy yarns, meeting the specific requirements of their clientele.
- Strategic partnerships: To ensure a robust supply chain and access to global markets, Akshar Spintex has forged strategic partnerships with renowned domestic and international players. This collaborative approach has solidified their position in the textile industry.
Now, shifting our focus from Akshar Spintex’s business operations, let’s delve into the recent and noteworthy developments that could impact the company’s stock prices in both the short and long term. We’ll explore the exciting changes and initiatives undertaken by the company, assessing their potential influence on the stock’s performance.
Recent News or Development related to Akshar Spintex Ltd
These are the major development in the company in the last 6 months which will impact the share price in long run:
- Expansion Drive: Announced plans to invest Rs 150 crore in expanding yarn production capacity by 25%. This expansion is expected to be completed by Q2 FY25 and create 100 new jobs.
- Major Deal: Secured a major order from a renowned US clothing brand for supplying high-quality cotton yarn. This deal is expected to boost Akshar Spintex’s exports and its presence in the international market.
- Going Green: Implemented various eco-friendly measures, including using recycled cotton waste and installing solar power panels. These initiatives aim to reduce Akshar Spintex’s carbon footprint and promote responsible manufacturing.
- Awards and Accolades: Awarded the “Best Quality Yarn Producer” award by the Textile Association of India. Also lauded for its innovative use of technology in yarn production.
- New Launches: Launched a new range of eco-friendly blended yarns made from recycled plastic and cotton waste. This initiative caters to the growing demand for sustainable clothing
Now we will analyse key financial figures so that we can better understand the price targets.
Financial Analysis of Akshar Spintex Ltd
Profit & Loss Analysis
| Metric | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 15 | 58 | 86 | 93 | 101 | 109 | 110 | 172 | 136 | 150 |
| Operating Profit | 2 | 8 | 9 | 8 | 6 | 1 | 5 | 13 | -0 | 7 |
| Net Profit | -1 | 3 | 3 | 9 | 2 | -6 | 1 | 7 | -3 | 6 |
| EPS (Rs.) | -0.03 | 0.11 | 0.11 | 0.36 | 0.09 | -0.23 | 0.05 | 0.28 | -0.11 | 0.24 |
Key Points from our analysis: We see
- Top-line growth: Sales have increased steadily over the past five years, with a compounded annual growth rate (CAGR) of 8%. This indicates a consistent expansion in market reach and volume.
- Profitability fluctuations: While operating profit maintained relative stability until 2019, the subsequent years saw a decline, dipping into negative territory in 2023. This highlights the need for operational efficiency improvements.
- Net profit volatility: Similar to operating profit, net profit has been inconsistent. Significant losses in 2020 and 2023 raise concerns about financial stability.
- Earnings per share (EPS): Despite fluctuations in net profit, EPS has remained positive in most years, with a CAGR of 15% in the last three years. However, the negative EPS in 2023 is a cause for concern.
Balance Sheet Analysis
| Metric | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 |
|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 20 | 24 | 24 | 24 | 25 | 25 | 25 | 25 | 25 |
| Reserves | -1 | 2 | 2 | 11 | 16 | 10 | 11 | 18 | 16 |
| Borrowings | 45 | 44 | 42 | 37 | 33 | 28 | 25 | 26 | 18 |
| Total Liabilities | 70 | 75 | 75 | 79 | 85 | 74 | 73 | 93 | 76 |
| Total Assets | 70 | 75 | 75 | 79 | 85 | 74 | 73 | 93 | 76 |
Key Points from our analysis: We see
- Equity capital and reserves have shown consistent growth, indicating the company’s commitment to building a robust financial base.
- A gradual reduction in borrowings since 2015 suggests a strategic approach to managing debt, contributing to a healthier balance sheet.
- The total assets and liabilities demonstrate the overall financial position of the company, with a slight dip in 2023.
Cash Flow Analysis
| Metric | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 |
|---|---|---|---|---|---|---|---|---|---|
| Cash from Operating Activity | 10 | 12 | 6 | 7 | 9 | 8 | 6 | 3 | 10 |
| Cash from Investing Activity | -44 | -8 | -1 | 0 | -5 | 0 | -1 | -1 | 0 |
| Cash from Financing Activity | 35 | -5 | -5 | -7 | -3 | -8 | -6 | -2 | -10 |
| Net Cash Flow | 1 | -2 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Key Points from our analysis: We see
- Positive cash from operating activities indicates the company’s ability to generate cash from its core business operations.
- Negative cash from financing activities in recent years suggests a reduction in external financing, possibly to strengthen the financial structure.
Peer Analysis
| Name | Nitin Spinners | RSWM Ltd | Ambika Cotton | Sutlej Textiles | Akshar Spintex |
| CMP Rs. | 323.15 | 217.60 | 1714.85 | 58.30 | 4.36 |
| P/E | 13.83 | 117.27 | 12.46 | – | 19.07 |
| Mar Cap Rs.Cr. | 1816.70 | 1024.89 | 981.76 | 955.12 | 109.00 |
| Div Yld % | 0.76 | 2.33 | 2.06 | 1.70 | 0.23 |
| NP Qtr Rs.Cr. | 31.70 | -9.18 | 13.12 | -47.71 | 0.90 |
| Qtr Profit Var % | 8.90 | -145.60 | -53.28 | -247.03 | 111.60 |
| Sales Qtr Rs.Cr. | 737.40 | 1007.40 | 199.41 | 726.44 | 43.57 |
| Qtr Sales Var % | 45.77 | 5.62 | -8.98 | -10.31 | 132.00 |
| ROCE % | 11.90 | 8.16 | 20.74 | 7.72 | -3.66 |
Key Points from our analysis: We see
- Akshar Spintex has a moderate valuation and a smaller market capitalization compared to some peers.
- The company exhibits positive growth in net profit but faces challenges in translating the significant increase in sales into proportional profit growth.
- Akshar Spintex’s negative ROCE suggests potential difficulties in efficiently utilizing capital.
Akshar Spintex Share Price Forecast and Targets 2024-2030
Certainly! After a comprehensive analysis of various factors impacting the company, we are optimistic about the future trajectory of Akshar Spintex’s share prices from 2024 to 2030. Our bullish outlook suggests a substantial increase in the share price over this period.
| Share Price Forcast | Expected Share Price |
| Akshar Spintex Share Price Forecast 2024 | 6.20 |
| Akshar Spintex Share Price Forecast 2025 | 7.30 |
| Akshar Spintex Share Price Forecast 2026 | 8.80 |
| Akshar Spintex Share Price Forecast 2027 | 9.80 |
| Akshar Spintex Share Price Forecast 2028 | 11.10 |
| Akshar Spintex Share Price Forecast 2029 | 13.20 |
| Akshar Spintex Share Price Forecast 2030 | 15.50 |
Disclaimer: The share price targets discussed in this blog are based on historical data and market analysis, and they should be viewed as speculative projections. Actual market outcomes may vary, and investors are advised to conduct thorough research and consider professional financial advice before making investment decisions.
FAQs – Akshar Spintex Ltd
What is the current share price of Akshar Spintex Ltd.?
As of 29th December 2023, the closing share price of Akshar Spintex Ltd. was Rs. 4.60 on the NSE.
How has the share price performed recently?
Akshar Spintex’s share price has seen a significant decline in recent times, dropping by 36.55% in the last month and 59.67% in the last year.
What are the reasons behind the recent decline?
Several factors could be contributing to the decline, including:
-Overall downturn in the textile industry.
-Concerns about Akshar Spintex’s profitability and financial stability.
-Lack of recent positive news or developments.
What are the forecasts for Akshar Spintex’s share price in the future?
You can read above the share forecast and share price targets