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Check Before You Invest : Nahar Poly Films Ltd

BSE: 523391 NSE: NAHARPOLY ISIN: INE308A01027
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Plastic Products

Snapshot

Q.1 Which industry/sub-sector does Nahar Poly Films Ltd belong to?
Nahar Poly Films Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Plastic Products segment.
Q.2 Is Nahar Poly Films Ltd a good quality company?
Nahar Poly Films Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Nahar Poly Films Ltd undervalued or overvalued?
Nahar Poly Films Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 10.15 11.21
Price to Book 1.19 1.24
Price to Sales 0.9 0.97
EV to EBITDA 5.62 8.56
Q.4 Is Nahar Poly Films Ltd a good buy now?
Nahar Poly Films Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Nahar Poly Films Ltd?
Nahar Poly Films Ltd revenue growth is 11% for FY-2025, which is below its 5-year CAGR of 19.16%, indicating slower growth.

Q.2 Gross Profit margin of Nahar Poly Films Ltd?
Nahar Poly Films Ltd Gross profit margin which is the profit after deduction of direct costs, is 12.7% for FY-2025, which is in line with its 5-year median of 12.7%, indicating stable margins.

Q.3 Operating Profit Margin of Nahar Poly Films Ltd?
Nahar Poly Films Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.44% for FY-2025, which is in line with its 5-year median of 11.44% indicating stable margins.

Q.4 Net Profit Margin of Nahar Poly Films Ltd?
Nahar Poly Films Ltd Net Profit Margin is 5.46% for FY-2025, is in line with its 5-year median of 5.46%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 12.7 12.7
Operating Profit Margin (%) 11.44 11.44
Net Profit Margin (%) 5.46 5.46

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Nahar Poly Films Ltd?
Nahar Poly Films Ltd Return on Asset is 5.72%, which is in line with its 5-year historical median of 5.72%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Nahar Poly Films Ltd?
Nahar Poly Films Ltd Return on capital employed is 10.54% for FY-2025, which is in line with its 5-year historical median of 10.54%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Nahar Poly Films Ltd?
Nahar Poly Films Ltd Return on equity is 7.53% for FY-2025, which is in line with its 5-year historical median of 7.53%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Nahar Poly Films Ltd?
Nahar Poly Films Ltd Cash conversion cycle is 35 days, in line with its 5-year historical median of 35 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 (x) 1.05 0.94
ROE (%) 7.53 7.53
ROCE (%) 10.54 10.54
Cash Conversion Cycle 35 days 35 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Nahar Poly Films Ltd?
Nahar Poly Films Ltd Debt-to-Equity ratio is 0.20, which is lower the industry average of 0.25, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Nahar Poly Films Ltd?
Nahar Poly Films Ltd Debt to cash flow from operations is 1.69, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Nahar Poly Films Ltd?

Q.1 Promoter shareholding and pledge status of Nahar Poly Films Ltd?
Promoters hold 72.50% of the Nahar Poly Films Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Nahar Poly Films Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Nahar Poly Films Ltd vs industry peers?
Nahar Poly Films Ltd revenue CAGR is 19.16%, compared to the industry median CAGR of 4.71%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 11 4.7
Gross Profit Growth (%) 304.8 14.3
Operating Profit Growth (%) 261.9 10.1
Net Profit Growth (%) 0 18.7
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.05 1.06
ROE (%) 7.53 5.91
ROCE (%) 10.54 8.75
Cash Conversion Cycle (days) 34.67 77

Valuation & price assessment

Q.1 Stock return of Nahar Poly Films Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 18.1% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
18.1% 9.7% -1.3% -4.6%
Q.2 Valuation ratios of Nahar Poly Films Ltd vs historical?
The current P/E ratio of 10.15 is lower than its historical median of 11.21, indicating that the stock is trading below its historical average valuation.
Q.3 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 10.15 11.21 22.05
Price to Book 1.19 1.24 1.89
Price to Sales 0.9 0.97 1.33
EV to EBITDA 5.62 8.56 10.86

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