₹269.95
+0.78% today
· 30d +14.87%
as of 2026-09-04
Price · Daily Candles
“SALONA's Profit Plunge: Quarterly Net Profits Crater 79%, Margins Under Pressure.”
Salona Cotspin Ltd. (SALONA) reported a significant decline in profitability with Q4 2025 net profit plunging by 79.28% YoY to ₹0 Cr and operating profit falling by 16.19% YoY. This comes despite a modest 0.86% price return over the last month. The current TTM PE is infinite (due to zero EPS), while the PB ratio stands at 1.2, suggesting a valuation disconnect given the performance.
BULL CASE
+SALONA's last 5-year annual revenue CAGR is 40.29% and net profit CAGR is 21.7%, demonstrating historical growth capacity, despite recent declines.
+The stock is trading at a significant margin of safety, with an intrinsic value of ₹701.22 against the current price of ₹277.1, indicating a 153.1% potential upside based on FCF.
+The 1-year returns are positive at 9.29%, outperforming the 6-month return of 2.76% and 1-week return of -0.63%.
BEAR CASE
−Q4 2025 net profit plummeted by 79.28% YoY to ₹0 Cr, indicating severe pressure on the bottom line.
−Quarterly revenue saw a marginal decline of 1.77% YoY, while operating profit fell by 16.19% YoY, with OPM contracting by 0.88%.
−Annual revenue for FY25 decreased by 8.35% YoY to ₹662 Cr, and net profit fell by 48.89% YoY to ₹3 Cr, highlighting a sustained downturn.
−The company's TTM PE ratio is currently infinite due to an EPS of ₹0.0, signalling a lack of recent profitability for traditional valuation metrics.
₹ Latest Earnings · Q ending 2026-06-30
REVENUE
₹197 Cr
+25.14% YoY
NET PROFIT
₹2 Cr
+47.35% YoY
OPM
5.46%
-0.71pp YoY
EPS
₹4.29
PE inf
Intrinsic value · DCF: N/A — ML model predicts severe Δ FCF compression (h1=-50.0%, h2=-50.0%, h3=-50.0% of mktcap), driving projected FCF negative by year 3 despite healthy current FCF. Treating as forecast outlier rather than reporting a misleading ₹0 valuation. Use the Strategy Fit and ML sections instead.
◇ Sector Position
SALONA, with an infinite TTM PE and 2.25% ROCE (implied from closest peer ALOKINDS with similar ROCE and market cap), appears significantly less attractive than peers like WELSPUNLIV (PE 64.9, ROCE 20.69%) or ARVIND (PE 36.47, ROCE 21.22%) in the Textile Manufacturing sector.
PEERPEROCE %
SALONAinf—
+ 2 more peers — sign in to view
ML Forward Growth Predictions 🔒
46
SCORE / 100
Overall
6-axis composite of the sections below.
Performance
STRONG
75
Valuation
STRETCHED
5
Growth
DECLINING
21
Profitability
AVERAGE
30
Technicals
NEUTRAL
55
Risk
LOW
90
Key Stats
TTM PE
inf
P/B
1.2
52W HIGH
₹320.0
OFF HIGH
-15.64%
DIV YIELD
0.36%
MKT CAP
₹142 Cr
◉ Active Signals
MACDNeutral-0.1477
RSI(14)Neutral54.25
⧉ Strategy Fit 🔒