Check Before You Invest : Nahar Spinning Mills Ltd

Snapshot

Q.1 Which industry/sub-sector does Nahar Spinning Mills Ltd belong to?

Nahar Spinning Mills Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile - Spinning segment.

Q.2 Is Nahar Spinning Mills Ltd a good quality company?

Nahar Spinning Mills Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Nahar Spinning Mills Ltd undervalued or overvalued?

Nahar Spinning Mills Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Nahar Spinning Mills Ltd a good buy now?

Nahar Spinning Mills Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Nahar Spinning Mills Ltd?

Nahar Spinning Mills Ltd revenue growth is 7.7% for FY-2025, which is below its 5-year CAGR of 9.54%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Nahar Spinning Mills Ltd?

Nahar Spinning Mills Ltd Return on capital employed is 3.83% for FY-2025, which is below its 5-year historical median of 6.62%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Nahar Spinning Mills Ltd?

Nahar Spinning Mills Ltd Return on Asset is 0.44%, which is below its 5-year historical median of 1.99%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Nahar Spinning Mills Ltd?

Nahar Spinning Mills Ltd Return on equity is 0.83% for FY-2025, which is below its 5-year historical median of 4.82%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Nahar Spinning Mills Ltd?

Nahar Spinning Mills Ltd Cash conversion cycle is 165 days, in line with its 5-year historical median of 165 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.17	1.12
ROE	0.83	4.82
ROCE	3.83	6.62
Cash Conversion Cycle	165 days	165 days

Q.6 Gross Profit margin of Nahar Spinning Mills Ltd?

Nahar Spinning Mills Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.7% for FY-2025, which is below its 5-year median of 6.4%, indicating decreasing margins.

Q.7 Operating Profit Margin of Nahar Spinning Mills Ltd?

Nahar Spinning Mills Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 5.06% for FY-2025, which is below its 5-year median of 7.75% indicating decreasing margins.

Q.8 Net Profit Margin of Nahar Spinning Mills Ltd?

Nahar Spinning Mills Ltd Net Profit Margin is 0.38% for FY-2025, is below with its 5-year median of 1.96%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	3.7	6.4
Operating Profit Margin	5.06	7.75
Net Profit Margin	0.38	1.96

Q.9 Debt to Equity ratio of Nahar Spinning Mills Ltd?

Nahar Spinning Mills Ltd Debt-to-Equity ratio is 0.74, which is above with the industry average of 0.4, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Nahar Spinning Mills Ltd?

Nahar Spinning Mills Ltd Debt to cash flow from operations is 11.83, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Nahar Spinning Mills Ltd?

Promoters hold 67.96% of the Nahar Spinning Mills Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Nahar Spinning Mills Ltd vs industry peers?

Nahar Spinning Mills Ltd revenue CAGR is 9.54%, compared to the industry median CAGR of 2.18%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	7.7	2.2
Gross Profit Growth	269.7	NAN
Operating Profit Growth	88.6	-2.1
Net Profit Growth	0	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.17	1
ROE	0.83	3.73
ROCE	3.83	6.18
Cash Conversion Cycle (days)	165.16	72

Valuation & price assessment

Q.1 Stock return of Nahar Spinning Mills Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 8.8% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	8.8%	18.6%	-5%	11.9%

Q.3 Valuation ratios of Nahar Spinning Mills Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	42.5	6.87	9.40
Price to Book	0.58	0.65	0.72
Price to Sales	0.28	0.33	0.40
EV to EBITDA	8.93	7.95	7.20

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