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

• Market Cap: ₹3.94B
• Dividend Yield: 0.57%
• Average Volume (3M): 534.00
• Price to Earnings (P/E): 6.6
• Beta (1Y): 1.32
• Revenue Growth: -36.38%
• EPS Growth: 93.15%
• Country: IN
• Employees: 18
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 12.17
• 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: ₹237.00 ▼(-9.39% Downside)

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

Balance Sheet Strength

Low leverage and a high equity ratio provide durable financial resilience, enabling the company to absorb shocks, support lending/investment activities, and access growth opportunities without immediate reliance on external financing. This underpins long-term solvency and strategic flexibility.

High Gross and Operating Margins

Exceptionally high gross margins and periods of strong EBIT/EBITDA margins indicate an inherently profitable core business model (investment/financial activities). Durable margin potential provides a buffer against revenue swings and supports reinvestment and capital accumulation over time.

Focused NBFC Business Model

A focused NBFC/investment services model offers diversified income streams (investment income, fees) and operational scalability. This structural business orientation can produce recurring revenues and strategic optionality, supporting sustainable earnings if underwriting and trading discipline persist.

Negative Factors

Declining Revenue Trend

A substantial year-over-year revenue decline reduces scale and erodes operating leverage. Over several months this weakens the firm's ability to cover fixed costs, invest in growth initiatives, and absorb credit or market shocks, increasing pressure on long-term profitability and strategic execution.

Weak Free Cash Flow Conversion

Repeated negative free cash flow and poor conversion of earnings to cash undermine internal funding capacity, forcing reliance on external financing for operations or growth. This reduces financial flexibility, raises refinancing risk, and can constrain sustainable capital returns over time.

Profitability and ROE Volatility

Material swings in ROE and net margins indicate inconsistent profit generation and earnings quality. Persistent volatility complicates capital allocation, forecasting, and investor confidence, making long-term performance less predictable and increasing execution risk for strategic initiatives.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: Negative
• 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 236.49, above the 50-day MA of 252.21, and below the 200-day MA of 282.61, indicating a bearish trend. The MACD of -7.75 indicates Negative momentum. The RSI at 38.97 is Neutral, neither overbought nor oversold. The STOCH value of 43.04 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	₹4.26B	30.12	―	―	-3.87%	-56.35%
SILINV	63 Neutral	₹4.80B	12.44	―	0.49%	―	―
NAHARCAP	62 Neutral	₹3.94B	6.62	―	0.57%	-36.38%	93.15%
NBIFIN	57 Neutral	₹4.94B	29.24	―	0.02%	―	―
IITL	54 Neutral	₹3.28B	-57.39	―	―	-90.21%	-106.42%
MUTHOOTCAP	43 Neutral	₹3.77B	30.95	―	―	40.61%	-64.65%

Nahar Capital & Financial Services Ltd. Corporate Events

Nahar Capital Releases Unaudited Financial Results

Nahar Capital & Financial Services Ltd. announced the publication of its unaudited financial results for the quarter and half-year ended September 30, 2025, in the ‘Financial Express’ and ‘Punjabi Jagran’ newspapers. This disclosure is in compliance with SEBI regulations and is intended to inform the general public and stakeholders about the company’s financial performance.