Nahar Spinning Mills Ltd (NAHARSPING) AI Stock Analysis

• Market Cap: ₹6.67B
• Dividend Yield: 0.51%
• Average Volume (3M): 1.49K
• Price to Earnings (P/E): 19.3
• Beta (1Y): 1.18
• Revenue Growth: 3.67%
• EPS Growth: N/A
• Country: IN
• Employees: 10,444
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Manufacturers
• EPS (TTM): -1.29
• Shares Outstanding: 36,065,304
• 10 Day Avg. Volume: 1,039
• 30 Day Avg. Volume: 1,490
• PEG Ratio: -0.50
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 20.74
• 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: 48 Neutral
• Price Target: ₹183.00 ▼(-4.26% Downside)

The overall stock score of 48 reflects mixed financial performance with positive revenue growth but weak profitability. Technical analysis suggests a neutral to slightly bearish trend, while valuation metrics indicate potential overvaluation. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Stable revenue model with long-term contracts

Long-term contracts and diversified direct sales to garment makers, wholesalers and exporters create predictable, recurring revenue. This structural customer base reduces short-term demand volatility, supporting planning, working capital management and multi-month cash flow visibility.

Manageable leverage and solid equity base

A debt-to-equity near 0.74 and a >50% equity ratio signal conservative capital structure for the textile industry. This durable balance sheet strength lowers refinancing and liquidity risk, enabling the company to fund operations, sustain capex and withstand sector cyclicality over several months.

Improving cash generation and free cash flow

Strong operating cash conversion and a material improvement in free cash flow from prior negative levels show enhanced cash discipline. Reliable cash generation supports debt servicing, reinvestment and optional shareholder returns, strengthening liquidity over the medium term.

Negative Factors

Severely compressed gross and net margins

A dramatic drop in gross margin and near-zero net margin reflect sustained pricing pressure or rising input costs. Such margin compression materially reduces earnings resilience, limits reinvestment capacity and leaves little buffer against cost shocks over the coming months.

Very low return on equity

ROE below 1% indicates the company is generating minimal returns on shareholders' capital. Persistently low ROE erodes investor value and signals difficulty translating assets and equity into profitable growth, constraining capital raising and strategic investment options.

Weakening EBIT/EBITDA margins despite revenue growth

Top-line growth paired with shrinking operating margins points to operational inefficiencies or rising fixed/variable costs. This undermines scalability: revenue gains are not translating into stronger profitability, making sustainable margin recovery a structural priority.

Nahar Spinning Mills Ltd Business Overview & Revenue Model

Company Description

Nahar Spinning Mills Limited manufactures and sells yarns and knitted garments in India. It offers raw white combed, raw white carded/open end, dyed, organic cotton, fair trade cotton, better cotton initiative, melange, gassed/mercerized, compact spun, blended, synthetic/man-made fiber, and cleaner yarns, as well as grindle, space-dyed, slub, core spun, high twist, reverse twist, and elitwist yarns. The company also provides woolen/cotton hosiery knitwears and woolen textiles; and T-shirts. It exports its products primarily to the United States, the United Kingdom, France, Brazil, Bangladesh, Mauritius, Honduras, Argentina, Colombia, Peru, Chile, the Netherlands, Japan, Canada, Korea, Taiwan, Hong Kong, Singapore, Egypt, and Russia. The company was incorporated in 1980 and is based in Ludhiana, India.

How the Company Makes Money

Nahar Spinning Mills Ltd generates revenue primarily through the sale of its core products, which include various types of yarns produced from both cotton and synthetic fibers. The company has established a robust revenue model that includes direct sales to garment manufacturers, wholesalers, and retailers in domestic and international markets. Key revenue streams include bulk sales of yarn to textile companies and partnerships with fashion brands that require high-quality raw materials for their production processes. Additionally, Nahar Spinning Mills benefits from long-term contracts with major textile producers, ensuring a consistent flow of income. The company also invests in innovation and sustainability initiatives that enhance its product offerings, potentially opening new revenue avenues in eco-friendly textiles.

Nahar Spinning Mills Ltd Financial Statement Overview

Summary

Nahar Spinning Mills Ltd displays mixed financial health. Revenue growth is a positive trend, but profitability metrics are under pressure. The balance sheet is relatively strong with a good equity base and manageable debt. Cash flow improvements suggest better cash management, though profitability remains a concern. Future focus should be on enhancing operational efficiency and boosting profit margins.

Income Statement

The income statement reveals a mixed performance. Gross profit margins have declined from 41.7% in 2022 to 10.2% in 2025, indicating rising costs or pricing pressures. Net profit margins are low at 0.38% in 2025, showing profitability challenges. However, revenue growth from 2024 to 2025 was 11.2%, which is a positive indicator. EBIT and EBITDA margins have weakened significantly, pointing to operational inefficiencies.

Balance Sheet

The balance sheet shows stability in equity with a debt-to-equity ratio of 0.74, a manageable level of leverage for the industry. ROE in 2025 is modest at 0.83%, reflecting limited returns on equity. The equity ratio stands at 54.2%, which suggests a solid equity base. The company has managed its debt levels despite an increase in liabilities.

Cash Flow

Cash flow analysis indicates constraints in cash generation. The operating cash flow to net income ratio was 6.63 in 2025, showing strong cash conversion from profits. However, free cash flow improved significantly compared to a negative position in prior years. The free cash flow to net income ratio of 2.97 indicates effective cash generation relative to earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	32.83B	32.85B	29.55B	27.36B	34.82B	20.88B
Gross Profit	4.23B	3.34B	7.62B	1.90B	14.53B	7.24B
EBITDA	1.99B	1.91B	921.37M	2.56B	8.24B	1.96B
Net Income	216.75M	123.53M	-510.84M	1.11B	5.02B	414.15M
Balance Sheet
Total Assets	0.00	27.50B	28.89B	25.14B	29.51B	22.02B
Cash, Cash Equivalents and Short-Term Investments	331.57M	331.57M	9.02M	672.02M	30.11M	10.67M
Total Debt	0.00	11.01B	11.51B	7.30B	10.13B	10.74B
Total Liabilities	-14.89B	12.60B	14.08B	9.60B	13.50B	13.04B
Stockholders Equity	14.89B	14.89B	14.81B	15.54B	16.01B	8.98B
Cash Flow
Free Cash Flow	0.00	367.23M	-6.08B	3.38B	1.55B	-1.58B
Operating Cash Flow	0.00	819.39M	-3.95B	6.09B	2.61B	-853.10M
Investing Cash Flow	0.00	34.19M	-493.18M	-2.57B	-1.61B	-531.89M
Financing Cash Flow	0.00	-537.42M	3.93B	-3.03B	-985.38M	1.36B

Nahar Spinning Mills Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 191.15
• 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:NAHARSPING, the sentiment is Negative. The current price of 191.15 is below the 20-day moving average (MA) of 193.67, below the 50-day MA of 198.84, and below the 200-day MA of 227.92, indicating a bearish trend. The MACD of -3.39 indicates Positive momentum. The RSI at 31.69 is Neutral, neither overbought nor oversold. The STOCH value of 9.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:NAHARSPING.

Nahar Spinning Mills Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RSWM	64 Neutral	₹6.41B	79.27	―	―	5.54%	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
NAHARPOLY	60 Neutral	₹5.66B	9.34	―	0.41%	8.64%	182.96%
SHIVATEX	59 Neutral	₹2.30B	14.18	―	0.33%	15.16%	780.57%
NAHARSPING	48 Neutral	₹6.67B	19.34	―	0.51%	3.67%	―
BASML	47 Neutral	₹1.95B	13.75	―	―	-8.50%	―
MARALOVER	47 Neutral	₹1.74B	-6.52	―	―	-0.90%	-304.07%