Check Before You Invest : Nahar Industrial Enterprises Ltd

Snapshot

Q.1 Which industry/sub-sector does Nahar Industrial Enterprises Ltd belong to?

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

Q.2 Is Nahar Industrial Enterprises Ltd a good quality company?

Nahar Industrial Enterprises Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Nahar Industrial Enterprises Ltd undervalued or overvalued?

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

Q.4 Is Nahar Industrial Enterprises Ltd a good buy now?

Nahar Industrial Enterprises 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 Industrial Enterprises Ltd?

Nahar Industrial Enterprises Ltd revenue growth is 4% for FY-2025, which is above its 5-year CAGR of -0.55%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Nahar Industrial Enterprises Ltd?

Nahar Industrial Enterprises Ltd Return on capital employed is 4.68% for FY-2025, which is in line with its 5-year historical median of 4.68%. 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 Industrial Enterprises Ltd?

Nahar Industrial Enterprises Ltd Return on Asset is 1.19%, which is in line with its 5-year historical median of 1.19%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Nahar Industrial Enterprises Ltd?

Nahar Industrial Enterprises Ltd Return on equity is 2.11% for FY-2025, which is in line with its 5-year historical median of 2.11%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Nahar Industrial Enterprises Ltd?

Nahar Industrial Enterprises Ltd Cash conversion cycle is 154 days, above its 5-year historical median of 146 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.89	0.98
ROE	2.11	2.11
ROCE	4.68	4.68
Cash Conversion Cycle	154 days	146 days

Q.6 Gross Profit margin of Nahar Industrial Enterprises Ltd?

Nahar Industrial Enterprises Ltd Gross profit margin which is the profit after deduction of direct costs, is 4.9% for FY-2025, which is in line with its 5-year median of 4.9%, indicating stable margins.

Q.7 Operating Profit Margin of Nahar Industrial Enterprises Ltd?

Nahar Industrial Enterprises Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 4.61% for FY-2025, which is below its 5-year median of 6.6% indicating decreasing margins.

Q.8 Net Profit Margin of Nahar Industrial Enterprises Ltd?

Nahar Industrial Enterprises Ltd Net Profit Margin is 1.34% for FY-2025, is in line with with its 5-year median of 1.34%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	4.9	4.9
Operating Profit Margin	4.61	6.6
Net Profit Margin	1.34	1.34

Q.9 Debt to Equity ratio of Nahar Industrial Enterprises Ltd?

Nahar Industrial Enterprises Ltd Debt-to-Equity ratio is 0.63, 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 Industrial Enterprises Ltd?

Nahar Industrial Enterprises Ltd Debt to cash flow from operations is 7.85, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Nahar Industrial Enterprises Ltd?

Promoters hold 71.24% of the Nahar Industrial Enterprises Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Nahar Industrial Enterprises Ltd vs industry peers?

Nahar Industrial Enterprises Ltd revenue CAGR is -0.55%, compared to the industry median CAGR of 2.18%, indicating stable growth and maintaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	4	2.2
Gross Profit Growth	29.8	NAN
Operating Profit Growth	27.3	-2.1
Net Profit Growth	100	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.89	1
ROE	2.11	3.73
ROCE	4.68	6.18
Cash Conversion Cycle (days)	153.7	72

Valuation & price assessment

Q.1 Stock return of Nahar Industrial Enterprises Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 6.3% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	6.3%	18.8%	2.4%	20.8%

Q.3 Valuation ratios of Nahar Industrial Enterprises 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	10.61	9.75	9.40
Price to Book	0.5	0.56	0.72
Price to Sales	0.35	0.31	0.40
EV to EBITDA	6.4	6.49	7.20

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