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

• Market Cap: ₹3.65B
• Dividend Yield: 0.57%
• Average Volume (3M): 534.00
• Price to Earnings (P/E): 8.3
• Beta (1Y): 1.13
• 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: ₹231.00 ▼(-11.68% 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

Balance Sheet Strength

Nahar's low leverage and high equity ratio indicate durable financial flexibility. Low debt reduces refinancing and interest risk, enabling the firm to fund lending/investment activities and absorb shocks over the next several months while preserving capital allocation optionality.

High Gross and Operating Margins

Exceptionally high gross and intermittent strong operating margins point to profitable core activities or low direct costs. Sustained margin advantage supports reinvestment and buffers against revenue volatility, improving medium-term ability to generate operating profits.

Earnings Per Share Growth

Substantial EPS growth reflects improving bottom-line per-share performance, indicating better profitability or capital efficiency. When coupled with a strong equity base, rising EPS can enhance long-term returns and provide scope for reinvestment or shareholder distributions.

Negative Factors

Revenue Decline

Negative top-line growth erodes the foundation for sustainable profits and scale. Persistent or recurring revenue declines constrain margin expansion, reduce operating leverage benefits, and limit the firm's ability to invest in growth initiatives over the coming months.

Weak Cash Conversion

Repeated negative free cash flow and poor conversion of net income into cash reduce financial flexibility. This limits capacity to fund operations, repay or manage liabilities, and support dividends or reinvestment without external financing, raising medium-term funding risk.

Profitability and Asset Volatility

Material swings in assets, liabilities and ROE signal inconsistent profit generation and capital allocation. Volatility complicates forecasting and weakens confidence in sustainable returns, increasing execution risk for strategic plans in the next several months.

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

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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	299.66M	248.93M	223.62M	239.91M	258.42M	155.34M
Gross Profit	242.08M	177.74M	158.73M	177.97M	206.82M	117.46M
EBITDA	634.36M	599.10M	161.37M	944.09M	3.07B	847.07M
Net Income	595.64M	498.12M	117.66M	1.07B	2.26B	609.71M
Balance Sheet
Total Assets	18.25B	17.26B	17.00B	16.81B	17.33B	11.55B
Cash, Cash Equivalents and Short-Term Investments	11.90M	229.61M	548.13M	597.52M	574.53M	2.10B
Total Debt	59.60M	53.52M	43.02M	0.00	15.08M	60.85M
Total Liabilities	1.77B	1.62B	1.58B	1.52B	1.74B	1.12B
Stockholders Equity	16.49B	15.64B	15.42B	15.28B	15.59B	10.43B
Cash Flow
Free Cash Flow	-507.94M	219.77M	-178.05M	-340.02M	-696.72M	-549.16M
Operating Cash Flow	-454.34M	313.27M	-106.67M	-229.25M	-692.11M	-548.45M
Investing Cash Flow	482.10M	-268.00M	123.17M	255.00M	748.91M	564.43M
Financing Cash Flow	-29.25M	-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 228.99, above the 50-day MA of 235.34, and below the 200-day MA of 277.81, indicating a bearish trend. The MACD of -5.12 indicates Positive momentum. The RSI at 41.58 is Neutral, neither overbought nor oversold. The STOCH value of 50.80 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	65 Neutral	₹3.52B	14.75	―	―	-3.87%	-56.35%
SILINV	63 Neutral	₹4.27B	7.07	―	0.49%	―	―
NAHARCAP	62 Neutral	₹3.65B	8.25	―	0.57%	-36.38%	93.15%
NBIFIN	57 Neutral	₹4.25B	25.40	―	0.02%	―	―
IITL	54 Neutral	₹2.95B	13.34	―	―	-90.21%	-106.42%
MUTHOOTCAP	43 Neutral	₹3.23B	14.73	―	―	40.61%	-64.65%