Nahar Spinning Mills Ltd (NAHARSPING) AI Stock Analysis

• Market Cap: ₹6.04B
• Dividend Yield: 0.51%
• Average Volume (3M): 1.49K
• Price to Earnings (P/E): 17.5
• Beta (1Y): 1.35
• 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: 49 Neutral
• Price Target: ₹167.00 ▼(-12.63% Downside)

The score is held back primarily by pressured profitability and clear technical weakness (price below major moving averages and negative MACD). Offsetting factors include manageable leverage and improving cash flow, while valuation is roughly mid-range with a low dividend yield.

Positive Factors

Manageable leverage

A debt-to-equity ratio of 0.74 indicates leverage at a manageable level for a capital-intensive textile spinner, reducing refinancing risk and preserving financial flexibility. This supports working-capital cycles and selective capex over the next several months despite industry cyclicality.

Improving cash generation

Strong operating cash conversion (OCF-to-net-income 6.63) and a turnaround to positive free cash flow mean the company is turning accounting profits into real liquidity. Durable cash generation strengthens the ability to fund operations, service debt, and absorb raw-material swings over 2–6 months.

Revenue growth momentum

An 11.2% year-on-year revenue gain signals sustained demand for yarn and effective sales execution. Continued top-line growth can support better plant utilization and operating leverage, helping stabilize margins and cash flow as the firm navigates input-cost cycles in the medium term.

Negative Factors

Sharp gross margin compression

Gross margin collapsing to 10.2% (from much higher levels earlier) points to material pressure from raw-material, pricing, or mix shifts. Such structural margin erosion materially reduces buffer for SG&A, interest and capex, and makes profitability highly sensitive to commodity and price volatility.

Very low net profitability

A net margin of 0.38% implies almost no bottom‑line cushion, limiting retained earnings and reinvestment capacity. This low profitability elevates risk from even modest cost or demand shocks and constrains ability to build reserves or fund strategic initiatives over the coming months.

Weak return on equity

ROE of 0.83% signals poor capital efficiency and weak value generation for shareholders. Persistently low returns may hinder the company's ability to attract capital, justify reinvestment, or expand capacity, limiting growth prospects and strategic flexibility over a 2–6 month horizon.

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

Mixed fundamentals: revenue grew 11.2% (2024→2025) and cash flow improved (free cash flow turned positive with strong cash conversion), but profitability has deteriorated sharply (gross margin down to 10.2% and net margin just 0.38% in 2025). Balance sheet is relatively stable with manageable leverage (debt-to-equity 0.74) and a solid equity ratio (54.2%), though returns are weak (ROE 0.83%).

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: Negative
• RSI: Neutral
• STOCH: Neutral

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 above the 20-day moving average (MA) of 172.64, above the 50-day MA of 187.62, and below the 200-day MA of 224.25, indicating a bearish trend. The MACD of -9.17 indicates Negative momentum. The RSI at 42.05 is Neutral, neither overbought nor oversold. The STOCH value of 42.65 is Neutral, 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	₹6.62B	82.11	―	―	5.54%	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
NAHARPOLY	60 Neutral	₹5.73B	9.44	―	0.41%	8.64%	182.96%
SHIVATEX	59 Neutral	₹2.18B	13.47	―	0.33%	15.16%	780.57%
NAHARSPING	49 Neutral	₹6.04B	17.53	―	0.51%	3.67%	―
BASML	47 Neutral	₹1.96B	13.96	―	―	-8.50%	―
MARALOVER	47 Neutral	₹1.60B	-6.14	―	―	-0.90%	-304.07%