Nahar Poly Films Limited (NAHARPOLY) AI Stock Analysis

• Market Cap: ₹5.86B
• Dividend Yield: 0.41%
• Average Volume (3M): 1.63K
• Price to Earnings (P/E): 7.4
• Beta (1Y): 0.70
• Revenue Growth: 8.64%
• EPS Growth: 182.96%
• Country: IN
• Employees: 319
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaging & Containers
• EPS (TTM): 7.86
• Shares Outstanding: 24,587,992
• 10 Day Avg. Volume: 1,515
• 30 Day Avg. Volume: 1,630
• PEG Ratio: 0.01
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.74
• P/FCF Ratio: 8.31
• 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: 60 Neutral
• Price Target: ₹252.00 ▲(4.98% Upside)
• Action: Downgraded Date: 11/21/25
• Date: Action: Downgraded 11/21/25

The overall stock score of 60 reflects a solid financial performance with strong revenue and profitability improvements. However, bearish technical indicators and modest valuation metrics weigh down the score. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Free Cash Flow Strength

A large, sustained increase in free cash flow demonstrates durable cash-generation capacity. Strong FCF provides flexibility to fund capex, repay debt, or invest in higher-margin product lines, reducing reliance on external financing and supporting multi-quarter operational resilience.

Revenue and Margin Improvement

Consistent revenue growth alongside meaningful gross and net margin expansion signals improving pricing, cost control, and possibly better product mix. These structural profitability gains enhance internal funding for capacity and R&D and strengthen competitive positioning over multiple quarters.

Conservative Capital Structure

Very low leverage and a high equity ratio give the company financial resilience against cyclicality in feedstock markets. This conservative structure supports long-term investments, lowers refinancing risk, and preserves strategic optionality during commodity-driven downturns.

Negative Factors

Moderate Operating Margins

While margins improved, operating profitability remains modest for a capital-intensive manufacturer. Limited operating leverage means incremental sales may not translate into strong profit expansion, leaving the business sensitive to cost inflation and constraining long-term margin resiliency.

Modest Return on Equity

A sub-6% ROE indicates relatively low returns on shareholders' capital, which could reflect constrained pricing power or asset turnover. Persistently low ROE can limit the company's ability to deliver strong shareholder returns absent material improvements in utilization or product mix.

Feedstock Price Exposure

The business is structurally exposed to volatile polymer resin prices tied to crude and petrochemical cycles. Unless mitigated by hedging, long-term contracts, or a shift to specialty films with better pass-through, input cost swings can materially compress margins over several quarters.

Nahar Poly Films Limited Business Overview & Revenue Model

Company Description

Nahar Poly Films Limited manufactures and sells bi-axially oriented polypropylene films in India and internationally. It provides metalissed and unmetalissed sealable and non-sealable films that are used in flexible packaging. The company was formerly known as Nahar Investments and Holding Limited and changed its name to Nahar Poly Films Limited in June 2008. Nahar Poly Films Limited was incorporated in 1988 and is based in Ludhiana, India.

How the Company Makes Money

NAHARPOLY makes money by manufacturing polymer films and selling them to business customers, with revenue recognized primarily from the sale of finished film products. Its main revenue stream comes from (1) domestic and export sales of packaging/industrial films (e.g., BOPP and related film variants, where applicable), typically priced per kilogram/metric ton and influenced by film grade/specifications (thickness, coating/finish, optical properties, metallization/lamination suitability) and order volume. Additional earnings can come from (2) processing/value-added variants of films (such as specialty, coated, or application-specific films) where margins may differ from commodity-grade films, and (3) any ancillary income directly tied to operations (e.g., job-work/processing or scrap/by-product sales), but specific details on these items are not available and therefore are null. Key factors affecting how it earns include polymer resin input costs (linked to crude oil and petrochemical markets), capacity utilization and operating efficiency of film lines, product mix (commodity vs. specialty films), customer concentration and contract terms (spot vs. longer-term supply arrangements), and demand conditions in flexible packaging and labeling. Specific significant partnerships, named customers, or quantified revenue breakdowns are not available and therefore are null.

Nahar Poly Films Limited Financial Statement Overview

Summary

Nahar Poly Films Limited exhibits solid financial performance with significant improvements in revenue and profitability metrics. The balance sheet is stable with low leverage, and cash flow management is strong, reflecting positive operational efficiency. However, there is room for enhancing operational margins and asset utilization.

Income Statement

Nahar Poly Films Limited has demonstrated a positive revenue growth rate with Total Revenue increasing from 5,999.3 million in 2024 to 6,659.4 million in 2025, reflecting an 11.08% growth. The Gross Profit Margin improved significantly from 8.13% to 16.49%, and the Net Profit Margin saw a strong improvement from 0.95% to 7.11%. These improvements highlight the company's ability to enhance profitability and manage costs effectively. However, the EBIT Margin at 6.56% and EBITDA Margin at 14.13% in 2025, while improved, suggest room for further operational efficiency.

Balance Sheet

The company maintains a solid financial position with a low Debt-to-Equity Ratio of 0.12 in 2025, indicating conservative leverage. The Return on Equity (ROE) improved to 5.91%, which shows a positive trend but remains moderate. The Equity Ratio remains strong at 84.56%, reflecting a solid capital structure, though slightly reduced from previous years. Overall, the balance sheet indicates stability but suggests potential for improved asset utilization.

Cash Flow

Nahar Poly Films Limited has shown robust cash flow management with a significant increase in Free Cash Flow from 265.4 million in 2024 to 590.8 million in 2025, a growth rate of 122.57%. The Operating Cash Flow to Net Income Ratio is sound at 1.36, indicating efficient cash generation relative to net income. However, the Free Cash Flow to Net Income Ratio of 1.25 suggests that while cash generation is strong, there is room for enhancing cash retention or reinvestment.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	6.99B	6.66B	6.00B	7.23B	4.87B	3.03B
Gross Profit	2.01B	1.10B	487.58M	1.61B	1.85B	1.13B
EBITDA	1.14B	940.97M	320.16M	865.43M	1.24B	703.55M
Net Income	606.73M	473.79M	56.79M	432.02M	977.11M	626.14M
Balance Sheet
Total Assets	10.09B	9.48B	9.59B	9.79B	11.44B	6.53B
Cash, Cash Equivalents and Short-Term Investments	339.56M	254.13M	255.84M	405.24M	6.23M	9.71M
Total Debt	955.87M	955.06M	1.26B	1.63B	1.73B	583.95M
Total Liabilities	1.56B	1.46B	1.60B	2.00B	2.31B	1.28B
Stockholders Equity	8.53B	8.02B	7.99B	7.79B	9.13B	5.25B
Cash Flow
Free Cash Flow	505.13M	590.83M	265.35M	1.02B	-1.25B	-580.00M
Operating Cash Flow	604.44M	642.47M	267.29M	1.10B	-237.06M	941.81M
Investing Cash Flow	-457.79M	-130.82M	-112.27M	-366.89M	-918.87M	-1.36B
Financing Cash Flow	-232.34M	-383.86M	-380.77M	-408.73M	1.15B	422.20M

Nahar Poly Films Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 240.05
• 50DMA: Positive
• 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:NAHARPOLY, the sentiment is Positive. The current price of 240.05 is below the 20-day moving average (MA) of 241.50, above the 50-day MA of 236.31, and below the 200-day MA of 288.84, indicating a neutral trend. The MACD of -2.29 indicates Positive momentum. The RSI at 50.21 is Neutral, neither overbought nor oversold. The STOCH value of 38.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:NAHARPOLY.

Nahar Poly Films Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RPPL	63 Neutral	₹1.16B	16.55	―	―	10.14%	73.18%
TAINWALCHM	63 Neutral	₹1.86B	13.34	―	1.64%	―	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
NAHARPOLY	60 Neutral	₹5.86B	7.41	―	0.41%	8.64%	182.96%
NAGREEKEXP	51 Neutral	₹740.29M	31.72	―	―	-27.67%	-61.81%
INDIANCARD	47 Neutral	₹1.15B	-59.27	―	―	-10.80%	-66.88%

Nahar Poly Films Limited Corporate Events

Nahar Poly Films Updates Market on February 2026 Share Dematerialization

Nahar Poly Films Limited has submitted its dematerialization report for February 2026 to the stock exchanges, in compliance with SEBI regulations governing depositories and participants. The filing indicates that 1,072 equity shares were verified, dematerialized, and the physical certificates cancelled during the month.

Following these changes, the company records show that National Securities Depository Ltd. and Central Depository Services Ltd. together hold a total of 24,084,618 equity shares as the registered owners in electronic form. The update underscores the company’s ongoing shift from physical to electronic shareholding, supporting improved transparency, settlement efficiency, and regulatory compliance for investors and market participants.

Nahar Poly Films to Close Trading Window Ahead of Q3 FY26 Results

Nahar Poly Films Limited has notified the stock exchanges that it is closing its trading window for company securities for promoters, directors, key managerial personnel, designated persons and their immediate relatives from 1 January 2026 until 48 hours after the declaration of its financial results for the quarter ended 31 December 2025. This move, made in compliance with SEBI’s Prohibition of Insider Trading Regulations, underscores the company’s focus on governance and insider-trading safeguards ahead of its quarterly earnings release, providing additional assurance to investors about the integrity of trading in its shares during the results-preparation period.