Nahar Capital & Financial Services Ltd. (NAHARCAP) AI Stock Analysis

• Market Cap: ₹3.73B
• Dividend Yield: 0.57%
• Average Volume (3M): 534.00
• Price to Earnings (P/E): 8.3
• Beta (1Y): 1.27
• Revenue Growth: -36.38%
• EPS Growth: 93.15%
• Country: IN
• Employees: 18
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 7.81
• Shares Outstanding: 16,746,166
• 10 Day Avg. Volume: 1,189
• 30 Day Avg. Volume: 534
• PEG Ratio: 0.02
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 15.44
• P/FCF Ratio: 17.49
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ₹236.00 ▼(-9.77% Downside)
• Action: Reiterated Date: 10/24/25
• Date: Action: Reiterated 10/24/25

Nahar Capital & Financial Services Ltd. receives an overall score of 62, primarily driven by its stable balance sheet and attractive valuation. However, mixed financial performance and technical indicators suggest caution. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Strong balance sheet

A low debt-to-equity ratio and high equity ratio provide durable financial resilience for an NBFC. This capital strength supports regulatory buffers, cushions against credit losses, enables selective growth or acquisitions, and preserves funding flexibility over the medium term.

Very high gross margin

An exceptionally high gross margin indicates the core financial or investment activities retain a large spread after direct costs. Structurally strong gross profitability gives room to absorb operating expenses, sustain earnings through cycles, and bank surplus for capital or provisioning needs.

Material EPS improvement

A large year-over-year EPS increase reflects meaningful improvement in bottom-line performance. If sustained, rising EPS strengthens retained earnings, supports a higher equity base and internal capital formation, and improves capacity to expand lending or investment activities over time.

Negative Factors

Declining revenue

Negative revenue growth weakens the company's top-line foundation and limits operating leverage. Over months, shrinking revenue can compress margins, reduce fee and interest income generation, and constrain the firm's ability to reinvest in business development or absorb higher provisioning.

Weak cash conversion

Persistent negative free cash flow and poor earnings-to-cash conversion undermine liquidity and operational flexibility. For an NBFC, weak cash generation raises dependence on external funding, increases funding cost sensitivity, and limits sustainable growth of lending or portfolio investments.

Inconsistent profitability

Volatile net margins and varying return on equity reduce predictability of earnings and capital accumulation. Such inconsistency complicates provisioning, capital planning and investor visibility, making it harder to commit to multi-quarter growth strategies or to steadily expand credit exposure.

Nahar Capital & Financial Services Ltd. Business Overview & Revenue Model

Company Description

Nahar Capital and Financial Services Limited operates as a non-deposit taking non-banking financial company. The company operates through two segments, Investment/Financial and Real Estate. It invests in various financial securities, including equity, bonds, debentures, commodity, term deposits, and securities of various kind issued by companies, banks, mutual funds, and other authorities, as well as central, state, municipal, and local bodies. The company also provides lending services against liquid securities, such as shares, government bonds, gold, property, and other assets. In addition, it is involved in the real estate business, including the purchase and sale of residential and/or commercial land with trading perspective; dealing in real estate, the development of land, and the construction of building for commercial and residential purpose; leasing, hiring, or acquiring various real estate assets; and leasing of flats and buildings. Nahar Capital and Financial Services Limited was incorporated in 2006 and is based in Ludhiana, India.

How the Company Makes Money

Nahar Capital & Financial Services Ltd. generates revenue through multiple streams, primarily from brokerage fees earned on stock trading activities, asset management fees from managing mutual funds, and advisory fees for financial consultancy services. The company also earns income from interest on loans and advances provided to clients. Additionally, strategic partnerships with financial institutions and participation in various investment schemes contribute to its overall revenue. The firm's ability to leverage market trends and provide tailored financial solutions enhances its earning potential.

Nahar Capital & Financial Services Ltd. Financial Statement Overview

Summary

Nahar Capital & Financial Services Ltd. shows a stable financial structure with strong equity positions and low leverage. However, inconsistencies in revenue, profit margins, and cash generation pose risks to financial performance. The balance sheet stability is a positive aspect, but challenges in income and cash flow sustainability lower the overall score.

Income Statement

The income statement shows mixed performance with fluctuating margins and revenue. Gross profit margin was high in 2025 at 96.52%, but net profit margin fluctuated, dropping significantly before rising again. Revenue growth rates varied, with a notable decline in 2025 compared to 2024. Despite strong EBIT and EBITDA margins in some years, inconsistency in net income undermines overall profitability.

Balance Sheet

Nahar Capital & Financial Services Ltd. maintains a strong balance sheet with a low debt-to-equity ratio, indicating financial stability and low leverage risk. Equity ratio remains high, reflecting strong shareholder equity. However, fluctuations in total assets and liabilities highlight potential volatility. Return on equity showed significant variations, suggesting inconsistent profit generation capability.

Cash Flow

Cash flow analysis reveals challenges in sustaining positive operating cash flow, with several years of negative free cash flow. Free cash flow to net income ratios indicate inefficiencies in converting earnings into cash, while free cash flow growth was inconsistent. Operating cash flow to net income ratios show variability, reflecting potential operational cash management issues.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	245.08M	248.93M	223.62M	239.91M	258.42M	155.34M
Gross Profit	173.25M	177.74M	158.73M	177.97M	206.82M	117.46M
EBITDA	662.54M	599.10M	161.37M	944.09M	3.07B	847.07M
Net Income	496.12M	498.12M	117.66M	1.07B	2.26B	609.71M
Balance Sheet
Total Assets	0.00	17.26B	17.00B	16.81B	17.33B	11.55B
Cash, Cash Equivalents and Short-Term Investments	9.29M	229.61M	548.13M	597.52M	574.53M	2.10B
Total Debt	0.00	53.52M	43.02M	0.00	15.08M	60.85M
Total Liabilities	-15.64B	1.62B	1.58B	1.52B	1.74B	1.12B
Stockholders Equity	15.64B	15.64B	15.42B	15.28B	15.59B	10.43B
Cash Flow
Free Cash Flow	0.00	219.77M	-178.05M	-340.02M	-696.72M	-549.16M
Operating Cash Flow	0.00	313.27M	-106.67M	-229.25M	-692.11M	-548.45M
Investing Cash Flow	0.00	-268.00M	123.17M	255.00M	748.91M	564.43M
Financing Cash Flow	0.00	-14.62M	-26.54M	-26.45M	-51.15M	-10.11M

Nahar Capital & Financial Services Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 261.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NAHARCAP, the sentiment is Negative. The current price of 261.55 is above the 20-day moving average (MA) of 240.87, above the 50-day MA of 242.88, and below the 200-day MA of 280.85, indicating a bearish trend. The MACD of -3.89 indicates Positive momentum. The RSI at 37.34 is Neutral, neither overbought nor oversold. The STOCH value of 20.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:NAHARCAP.

Nahar Capital & Financial Services Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AVONMORE	67 Neutral	₹4.16B	14.75	―	―	-3.87%	-56.35%
SILINV	63 Neutral	₹4.34B	7.07	―	0.49%	―	―
NAHARCAP	62 Neutral	₹3.73B	8.25	―	0.57%	-36.38%	93.15%
NBIFIN	57 Neutral	₹4.66B	25.40	―	0.02%	―	―
IITL	54 Neutral	₹2.98B	13.34	―	―	-90.21%	-106.42%
MUTHOOTCAP	43 Neutral	₹3.47B	14.73	―	―	40.61%	-64.65%