Nahar Industrial Enterprises Limited (NAHARINDUS) AI Stock Analysis

• Market Cap: ₹3.99B
• Dividend Yield: N/A
• Average Volume (3M): 1.51K
• Price to Earnings (P/E): 20.4
• Beta (1Y): 1.41
• Revenue Growth: 7.04%
• EPS Growth: 91.00%
• Country: IN
• Employees: 6,850
• Sector: Industrials
• Sector Strength: 72
• Industry: Apparel - Manufacturers
• EPS (TTM): 1.34
• Shares Outstanding: 43,205,580
• 10 Day Avg. Volume: 1,044
• 30 Day Avg. Volume: 1,515
• PEG Ratio: 0.24
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.26
• P/FCF Ratio: -3.01
• 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: 66 Neutral
• Price Target: ₹100.00 ▼(-9.05% Downside)
• Action: Reiterated Date: 11/19/25
• Date: Action: Reiterated 11/19/25

Nahar Industrial Enterprises Limited demonstrates a solid financial performance with improved profitability and operational efficiency. The technical analysis shows a positive trend, though some bearish signals exist. The valuation is reasonable, but the lack of dividend yield may deter income-focused investors. Continued focus on cash flow management and leverage is essential for sustained growth.

Positive Factors

Vertical integration across spinning and weaving

Owning both spinning and weaving/processing steps gives durable control over input-to-output conversion, improving margin capture, quality consistency and scheduling flexibility. Vertical integration reduces reliance on third-party suppliers and supports stable throughput and customer service over months.

Improving profitability and operating margins

A shift from loss to positive net margin and rising EBIT/EBITDA margins indicates lasting operational improvements and tighter cost control. Sustained margin recovery enhances internal capital for reinvestment, strengthens ability to absorb input cost swings, and supports longer-term cash generation.

Stable equity base with improved return on equity

A stable equity foundation and rising ROE signal more efficient capital deployment and a stronger buffer against cyclical downturns. Improved ROE supports credibility with lenders and shareholders, helping sustain investment in operations and capture growth opportunities over time.

Negative Factors

Relatively high leverage

Elevated debt-to-equity increases financial fixed costs and limits strategic flexibility. High leverage raises refinancing and interest-rate sensitivity, constraining capex and working-capital options during soft demand periods and amplifying downside risk over the medium term.

Negative and volatile free cash flow

Persistent negative or volatile free cash flow undermines the company's ability to deleverage, fund maintenance capex or return capital. Reliance on external financing or working capital swings increases refinancing risk and reduces resilience to industry slowdowns over coming quarters.

Inconsistent revenue growth and gross margin pressure

Declining gross margins combined with uneven top-line growth point to pricing or cost-pressure vulnerabilities. Structural volatility in sales and cost absorption risks future margin compression and makes earnings and cash flows less predictable for planning and investment decisions.

Nahar Industrial Enterprises Limited Business Overview & Revenue Model

Company Description

Nahar Industrial Enterprises Limited, an integrated textile manufacturer, engages in spinning, weaving, processing, and selling textiles in India. It operates in two segments, Textile and Sugar. The company offers cotton, dyed cotton, compact spun, blended, polyester, industrial, open end, open end slub, TFO, specialized, Eli twist, core spun, and vortex yarns. It also provides various fabrics, including piece dyed, yarn dyed, and printed fabrics, as well as specialty and performance fabrics, and indigo yarn dyed shirting for use in apparels and home furnishings. In addition, the company produces various types and grades of sugar and allied products; and operates biomass/multi-fuel cogeneration power plants at Lalru and Amloh, Punjab. It also exports its products. The company was formerly known as Oswal Fats & Oils Limited and changed its name to Nahar Industrial Enterprises Limited in 1994. Nahar Industrial Enterprises Limited was incorporated in 1983 and is based in Ludhiana, India.

How the Company Makes Money

Nahar Industrial Enterprises generates revenue through multiple key streams primarily centered around its textile manufacturing operations. The company earns money by selling yarn, which serves as a fundamental raw material for fabric production, alongside finished products like woven fabrics and garments. NAHARINDUS also benefits from exporting its products to global markets, contributing to a significant portion of its income. Strategic partnerships with retailers and distributors enhance its market reach and ensure a steady demand for its offerings. Additionally, the company's focus on quality and innovation helps in maintaining competitive pricing, ultimately driving sales and profitability.

Nahar Industrial Enterprises Limited Financial Statement Overview

Summary

Nahar Industrial Enterprises Limited shows resilience with improved profitability and operational efficiency. However, challenges in managing cash flows and maintaining a balanced leverage position persist. Continued focus on operational improvements and prudent financial management is critical.

Income Statement

Nahar Industrial Enterprises Limited shows a mixed performance in its income statement. The gross profit margin has decreased from previous years, indicating higher costs or pricing pressures. However, the net profit margin has improved significantly from a loss to a positive figure, demonstrating better profitability management. Revenue growth has been inconsistent, with fluctuations over the years, but the company managed to bounce back in 2025. EBIT and EBITDA margins have shown improvement, indicating better operational efficiency.

Balance Sheet

The balance sheet displays a stable equity base with a relatively high debt-to-equity ratio, suggesting high leverage which may pose risks. The return on equity has improved, reflecting better utilization of shareholder funds. The equity ratio is strong, indicating a solid financial position, but the increasing debt levels need monitoring to ensure financial stability.

Cash Flow

Cash flow analysis reveals challenges in generating free cash flow, with negative free cash flow in recent years. However, the operating cash flow to net income ratio has improved, showing better cash generation from operations relative to net income. The volatile free cash flow growth rate highlights fluctuations in cash management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	15.60B	15.30B	14.64B	17.64B	19.84B	13.97B
Gross Profit	5.52B	2.45B	2.86B	3.73B	5.26B	2.59B
EBITDA	1.25B	1.17B	762.31M	1.83B	3.17B	993.30M
Net Income	216.77M	184.88M	97.32M	789.22M	1.57B	-87.77M
Balance Sheet
Total Assets	0.00	17.93B	16.58B	13.61B	18.29B	15.78B
Cash, Cash Equivalents and Short-Term Investments	228.88M	228.88M	313.17M	87.43M	48.87M	3.98M
Total Debt	0.00	6.22B	5.32B	2.77B	7.04B	6.96B
Total Liabilities	-9.90B	8.03B	6.87B	4.01B	9.32B	8.35B
Stockholders Equity	9.90B	9.90B	9.71B	9.60B	8.97B	7.43B
Cash Flow
Free Cash Flow	0.00	-1.32B	-2.11B	4.18B	342.82M	442.56M
Operating Cash Flow	0.00	401.88M	-718.39M	5.04B	845.98M	750.36M
Investing Cash Flow	0.00	-1.31B	-1.52B	-549.64M	-350.89M	-153.02M
Financing Cash Flow	0.00	882.55M	2.27B	-4.49B	-490.12M	-602.04M

Nahar Industrial Enterprises Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 109.95
• 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:NAHARINDUS, the sentiment is Negative. The current price of 109.95 is above the 20-day moving average (MA) of 101.42, above the 50-day MA of 102.83, and below the 200-day MA of 116.07, indicating a bearish trend. The MACD of -2.80 indicates Positive momentum. The RSI at 32.28 is Neutral, neither overbought nor oversold. The STOCH value of 38.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:NAHARINDUS.

Nahar Industrial Enterprises Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NAHARINDUS	66 Neutral	₹3.99B	20.40	―	―	7.04%	91.00%
LOKESHMACH	64 Neutral	₹4.18B	129.95	―	―	-37.98%	-119.55%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SUNDRMBRAK	55 Neutral	₹2.28B	-54.31	―	0.22%	4.26%	-121.56%
KECL	49 Neutral	₹5.42B	41.93	―	―	-11.25%	-48.96%
GUJAPOLLO	47 Neutral	₹4.41B	204.12	―	0.48%	4.69%	-124.17%