Nahar Industrial Enterprises Ltd Stock Analysis

BSE: 519136 | NSE: NAHARINDUS | Textile - Spinning | Small Cap

BSE Share Price 01-Feb-2023 18:03
99.70 -2.60 (-2.54%)

DeciZen - Make an Informed Decision on Nahar Ind.Enterprise

Overall Rating
M-Cap below 500cr. High Risk from low Liquidity

1. Quality

2. Valuation

Fair

3. Price Trend

Nahar Ind.Enterprise Price Chart

P/E Ratio ( SA) :
2.82
Market Cap :
397.2 Cr.
52-wk low :
98.7
52-wk high :
238
Bole Toh?

1. Is Nahar Industrial Enterprises Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Nahar Industrial Enterprises Ltd is a average quality company.

2. Is Nahar Industrial Enterprises Ltd undervalued or overvalued?

The key valuation ratios of Nahar Industrial Enterprises Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Nahar Industrial Enterprises Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Nahar Industrial Enterprises Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Nahar Ind.Enterprise:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Nahar Industrial Enterprises Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 7.8%8.2%2.8%6.3%7.3%4%1.7%1.3%2.1%12.8%-
Value Creation Index -0.4-0.4-0.8-0.6-0.5-0.7-0.9-0.9-0.9-0.1-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 1,7101,8501,8031,7701,7221,7591,8661,5731,4182,0062,015
YoY Gr. Rt. %-8.1%-2.5%-1.8%-2.7%2.1%6.1%-15.7%-9.8%41.5%-
Adj EPS 10.417.4-710.517.93.9-5-6.4-2.638.735.4
YoY Gr. Rt. %-67.4%-140.3%NA70.2%-78.4%-227.8%NANANA-
BVPS (₹) 144.6160.9145.4151.9173174.8174.1184.4184.3223236.6
Adj Net Profit 41.469.4-284271.415.4-19.8-25.6-10.5154141
Cash Flow from Ops. 11831029411621949.62031727584.6-
Debt/CF from Ops. 10.13.63.38.1419.64.24.19.38.3-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 1.8%3.1%2.4%41.5%
Adj EPS 15.7%16.7%NANA
BVPS 4.95.28.621
Share Price 9.9% 0.9% 57.3% -33.8%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 7.411.4-4.67.1112.2-2.8-3.6-1.41915.4
Op. Profit Mgn % 17.317.611.112.412.48.46.666.615.313.6
Net Profit Mgn % 2.43.8-1.62.44.20.9-1.1-1.6-0.77.77
Debt to Equity 2.11.71.71.61.31.41.2110.80.1
Working Cap Days 197196195199212228222240247194156
Cash Conv. Cycle 14515215015216216214815716113281

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 15.40%

Debt to equity has declined versus last 3 years average to 0.79

Sales growth is good in last 4 quarters at 14.75%

Sales growth has been subdued in last 3 years 2.44%

Net Profit has been subdued in last 3 years 0.00%

Latest Financials - Nahar Industrial Enterprises Ltd.

Standalone Consolidated
TTM EPS (₹) 35.4 35.5
TTM Sales (₹ Cr.) 2,015 2,015
BVPS (₹.) 236.6 238.9
Reserves (₹ Cr.) 903 912
P/BV 0.42 0.42
PE 2.82 2.82
From the Market
52 Week Low / High (₹) 98.70 / 238.00
All Time Low / High (₹) 2.70 / 720.00
Market Cap (₹ Cr.) 397
Equity (₹ Cr.) 39.8
Face Value (₹) 10
Industry PE 10.9

Management X-Ray of Nahar Ind.Enterprise :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Nahar Ind.Enterprise

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

Nahar Industrial Enterprises Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Nahar Ind.Enterprise on 01-Feb-2023 18:03 is : 99.70.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 01-Feb-2023 18:03 the market cap of Nahar Ind.Enterprise stood at ₹ 397.2.
The latest PE ratio of Nahar Ind.Enterprise as of 01-Feb-2023 18:03 is 2.82.
The latest PB ratio of Nahar Ind.Enterprise as of 01-Feb-2023 18:03 is 0.42
The 52-week high of Nahar Ind.Enterprise is ₹ 238.0 and the 52-week low is ₹ 98.70.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue / sales of Nahar Ind.Enterprise is ₹ 2,015 ( Cr.) .

About Nahar Industrial Enterprises Ltd

Nahar Industrial Enterprises was incorporated as Oswal Fats & Oils Limited in 1983. The name was changed to Nahar Industrial Enterprises Limited (NIEL) in 1994.

The company is the part of Nahar Group of Companies. The group was established in 1949 with the incorporation of Oswal Woollen Mills Limited. From there it had surged ahead to establish itself as a reputed industrial conglomerate with a wide ranging portfolio from wool   combing, spinning, knitting, fabric, hosiery garments, etc. Other group companies are Nahar Spinning Mills Limited, Nahar Investments and Holdings Limited, Nahar Capital and Financial Services Limited.

NIEL is a vertically-integrated textile manufacture, with operations ranging from spinning, weaving and processing through to finished ready-made woven garments159,408 spindles and 6320 rotors to produce different counts of yarn.

  • Weaving capacity with 426 looms.
  • Modern processing plant with capacity of 1,15,000 mtrs. /day.
  • Modern dyeing house with a capacity 6 tonnes yarn/ day.
  • Garment facilities for manufacture 20,00,000 Pcs. per annum.
  • 150 Retail outlets for selling readymade garment under” Cotton County” Brand. 2500 TCDs Sugar Mill.

NIEL’s strategic objective is to capitalize on the growth opportunities that it believes are available in the domestic and global textile industry. At the same time the company recognizes the competitive nature of the industry, especially with established pressure from Asia, and that to maintain growth it must continue to improve production process and reduce costs.

The company’s USP is expertise in 100% cotton and cotton blended fabrics and variety of weaves, including Twills, Chinos, Gabardines, Canvas, Tussers, Cavallery Twills, Satins, Broken Twills, etc.

NIEL’s client base is extremely diverse with no one customer accounting for more than 5% of total revenues. Approved fabric vendors for global brands such as the Gap, Tommy Hilfiger, Marks & Spencer and domestic brands such as Color plus, Allen Solly and Louis Phillips.

The facilities are backed by a weaving design studio where the time tested handloom is used for product development activity in consonance with market needs.The preparatory is equipped with Benningers Warping & Sizing Machines .Inspection is equipped with automatic inspection with rolling machine from la Maccanica Italy. Nahar fabrics has already produced more then 200 different constructions in Grey Fabric for in House needs and World Markets

Product range of the company includes:

  • Yarn
  • Fabric/garment
  • Fats and oils

Divisions of the company:

The company has two divisions under its umbrella namely oil & soap division and the textile division.

  • The oil and soap division has two units. The fatty Acid unit is engaged in the manufacture of Fatty Acids Stearic Acid and Distilled Glycerin. The soap unit is engaged in the production of Toilet & Laundry Soap.
  • In the textile division the company has two Spinning units and a weaving unit. The frost spinning unit, a100% EOU, is Engaged in the manufacture of cotton yarn is exporting its yarn to Europe, Hong Kong ,Singapore Taiwan ,Mauritius, Malaysia and Australia. The second unit, namely Sambav Spinning Mills,is engaged in the manufacture of cotton yarn. The aggregate installed spindlage in both the units is 38000 spindels. Nahar fabric the weaving unit is equipped with 176 Picanol Air Jet Weaving Machines(Cam/Repair/Dobby)

Milestones of the company:

  • 1983: Incorporated as Oswal Fats & Oils Limited.  
  • 1994: Name changed as Nahar Industrial Enterprises Limited.
  • 1997: Merged Nahar Fabrics Limited (manufacturer of greige fabric).
  •  2002: Merged Oswal Cotton Mills Limited (manufacturer of Processed fabrics and finished garments).
  • 2004: Launched apparel brand “Cotton County.”
  • 2005: Merged Nahar International Limited (manufacturer of yarn) & Nahar Sugar & Allied Industries Limited (manufacturer of sugar & steel). Accredited with ISO 9002 and ISO 14001.

Recent developments

Nahar Industrial Enterprises has repurchased and cancelled foreign currency convertible bonds (FCCBs) worth $ 25.5 million (face value) out of the total outstanding bonds.

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