Nahar Poly Films Limited (NAHARPOLY) AI Stock Analysis

• Market Cap: ₹5.61B
• Dividend Yield: 0.41%
• Average Volume (3M): 1.63K
• Price to Earnings (P/E): 7.4
• Beta (1Y): 0.64
• 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: ₹240.00 ▼(-0.02% Downside)
• 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

Strong Free Cash Flow

Free cash flow more than doubled year-over-year, improving cash conversion and financial flexibility. Durable FCF supports capex, debt reduction, and strategic investment in specialty lines, enabling the company to fund growth and withstand cyclical raw-material shocks.

Revenue & Margin Improvement

Sustained revenue growth with substantial gross and net margin expansion signals structural improvement in pricing, mix, or cost control. These improvements enhance durable profitability, provide reinvestment capacity, and strengthen competitive positioning in packaging films over the medium term.

Conservative Capital Structure

Very low leverage and a high equity ratio reduce financial risk and increase strategic optionality. A conservative balance sheet supports longer-term investments, partnership negotiations, and resilience across cycles, though ROE remains moderate and could improve with higher asset efficiency.

Negative Factors

Modest Operating Margins

Despite margin improvements, mid-single-digit EBIT indicates limited structural operating leverage and constrained pricing power versus input costs. Persistently modest operating margins could limit reinvestment, capital returns, and the ability to absorb sustained raw-material inflation without strategic shifts.

Input Cost Exposure

The business is structurally exposed to polymer resin prices tied to crude and petrochemical cycles, creating recurrent margin volatility. Without robust hedging, long-term pass-through pricing, or a move toward higher-value specialty films, earnings and cash flow remain sensitive to commodity swings.

Utilization & Contract Uncertainty

The company’s returns depend on higher capacity utilization and favorable product mix, but limited disclosure on customer concentration and contract tenor raises predictability risk. Underused assets or reliance on spot contracts can produce volatile utilization and uneven returns over the medium term.

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

Nahar Poly Films Limited generates revenue primarily through the sale of its various film products, including BOPET and BOPP films, which are in high demand for their applications in packaging and labeling. The company has established a robust supply chain and distribution network, which allows it to serve both domestic and international markets effectively. Key revenue streams include direct sales to manufacturers in the packaging sector, long-term contracts with major clients, and partnerships with distributors. Additionally, NAHARPOLY benefits from economies of scale due to its efficient production capabilities, which help in reducing costs and maximizing margins. The company's focus on research and development also enables it to innovate and introduce new products, thereby expanding its market reach and enhancing its revenue potential.

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	6.95B	6.66B	6.00B	7.23B	4.87B	3.03B
Gross Profit	1.47B	1.10B	487.58M	1.61B	1.85B	1.13B
EBITDA	1.08B	940.97M	320.16M	865.43M	1.24B	703.55M
Net Income	572.93M	473.79M	56.79M	432.02M	977.11M	626.14M
Balance Sheet
Total Assets	0.00	9.48B	9.59B	9.79B	11.44B	6.53B
Cash, Cash Equivalents and Short-Term Investments	254.13M	254.13M	255.84M	405.24M	6.23M	9.71M
Total Debt	0.00	955.06M	1.26B	1.63B	1.73B	583.95M
Total Liabilities	-8.02B	1.46B	1.60B	2.00B	2.31B	1.28B
Stockholders Equity	8.02B	8.02B	7.99B	7.79B	9.13B	5.25B
Cash Flow
Free Cash Flow	0.00	590.83M	265.35M	1.02B	-1.25B	-580.00M
Operating Cash Flow	0.00	642.47M	267.29M	1.10B	-237.06M	941.81M
Investing Cash Flow	0.00	-130.82M	-112.27M	-366.89M	-918.87M	-1.36B
Financing Cash Flow	0.00	-383.86M	-380.77M	-408.73M	1.15B	422.20M

Nahar Poly Films Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 240.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NAHARPOLY, the sentiment is Negative. The current price of 240.05 is below the 20-day moving average (MA) of 244.93, above the 50-day MA of 237.49, and below the 200-day MA of 288.89, indicating a bearish trend. The MACD of -1.23 indicates Positive momentum. The RSI at 40.60 is Neutral, neither overbought nor oversold. The STOCH value of 14.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	₹1.89B	13.34	―	1.64%	―	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
NAHARPOLY	60 Neutral	₹5.61B	7.41	―	0.41%	8.64%	182.96%
NAGREEKEXP	51 Neutral	₹749.36M	31.72	―	―	-27.67%	-61.81%
INDIANCARD	47 Neutral	₹1.19B	-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.