Nahar Industrial Enterprises Limited (NAHARINDUS) AI Stock Analysis

• Market Cap: ₹4.12B
• Dividend Yield: N/A
• Average Volume (3M): 1.51K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 1.36
• Revenue Growth: 7.04%
• EPS Growth: 91.00%
• Country: IN
• Employees: 6,850
• Sector: Industrials
• Sector Strength: 72
• Industry: Apparel - Manufacturers
• EPS (TTM): 3.82
• 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: ₹107.00 ▼(-2.68% Downside)

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 (spinning & weaving)

Owning spinning through weaving/processing creates a durable vertical advantage: it reduces dependency on third-party suppliers, aids margin capture across the value chain, smooths utilization across cycles, and supports diversified sales channels in domestic and export markets.

Improving profitability and margins

Sustained improvement in net and operating margins indicates better cost control, pricing power, or productivity gains. Higher margins translate to stronger internal returns on invested capital and greater resilience to raw-material or demand swings over the medium term.

Stronger operating cash conversion trend

An improving OCF-to-net-income conversion is a durable sign of healthier cash generation from core operations. It enhances the company’s ability to service debt, fund working capital and reinvest without relying solely on external financing, improving financial flexibility.

Negative Factors

High leverage and rising debt levels

Elevated and rising leverage is a structural vulnerability for a cyclical textile manufacturer: it increases interest expense, reduces buffering capacity in downturns, limits strategic investment and heightens refinancing and liquidity risk over the medium term.

Negative and volatile free cash flow

Persistent negative and volatile FCF constrains the company’s ability to fund capex, pay down debt, or return capital. Reliance on external financing can raise costs and reduce resilience to input-cost shocks, weakening long-term funding sustainability.

Declining gross margins & inconsistent revenue growth

A falling gross margin alongside uneven top-line growth suggests sustained input-cost pressure or competitive pricing weakness. This increases earnings volatility and limits predictable cash flows, making long-term planning and margin recovery more challenging.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: Neutral
• Last Price: 109.95
• 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:NAHARINDUS, the sentiment is Neutral. The current price of 109.95 is above the 20-day moving average (MA) of 99.85, above the 50-day MA of 106.18, and below the 200-day MA of 116.67, indicating a neutral trend. The MACD of -2.54 indicates Negative momentum. The RSI at 54.63 is Neutral, neither overbought nor oversold. The STOCH value of 71.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	₹4.12B	10.91	―	―	7.04%	91.00%
LOKESHMACH	64 Neutral	₹3.54B	-114.58	―	―	-37.98%	-119.55%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SUNDRMBRAK	55 Neutral	₹2.21B	-158.60	―	0.22%	4.26%	-121.56%
KECL	49 Neutral	₹5.38B	79.09	―	―	-11.25%	-48.96%
GUJAPOLLO	47 Neutral	₹4.60B	-156.57	―	0.48%	4.69%	-124.17%