Nahar Spinning Mills Ltd (NAHARSPING) AI Stock Analysis

• Market Cap: ₹7.07B
• Dividend Yield: 0.51%
• Average Volume (3M): 1.49K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.28
• Revenue Growth: 3.67%
• EPS Growth: N/A
• Country: IN
• Employees: 10,444
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Manufacturers
• EPS (TTM): -3.58
• 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: 53 Neutral
• Price Target: ₹215.00 ▲(12.48% Upside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

The score is held back primarily by weakened profitability (sharp margin compression and very low net margin) despite decent revenue growth and improving cash flow. Technicals remain mixed with the stock below key longer-term moving averages and a negative MACD, partially offset by a stronger RSI. Valuation is reasonable (P/E ~17) but the low dividend yield provides limited support.

Positive Factors

Top-line Growth

Sustained revenue growth of 11.2% indicates the company is expanding sales and retaining market demand. Over 2–6 months this underpins capacity utilization and scale economics, supporting gross throughput and providing a base to regain margin if input cost pressures ease or mix shifts to higher-value yarns.

Balance Sheet Stability

A moderate debt-to-equity of 0.74 and a 54.2% equity ratio signal manageable leverage and a solid capital base. This structural strength supports financing flexibility for working capital and selective capex, reducing refinancing risk during textile cycles and preserving strategic optionality over the medium term.

Improved Cash Generation

Marked improvement in free cash flow and a strong operating-cash-to-net-income ratio indicate the business converts earnings into cash effectively. Durable cash generation enhances ability to service debt, fund maintenance capex, and absorb cyclical downturns without immediate reliance on external capital.

Negative Factors

Severe Margin Compression

A collapse in gross margin from 41.7% to 10.2% signals deep structural pressure from rising raw material or conversion costs and/or pricing weakness. Persistently compressed gross margins undermine profitability, constrain reinvestment and make recovery dependent on sustained cost control or favorable yarn pricing cycles.

Minimal Return on Equity

ROE near 0.83% shows the company is generating almost no returns on shareholders' capital. This structural underperformance limits internal funding for growth, weakens investor confidence, and suggests the firm struggles to translate assets and equity into profitable, long-term returns.

Weakened Operating Margins

Significant deterioration in EBIT/EBITDA margins points to operational inefficiencies or higher fixed and conversion costs. Persistent margin erosion reduces competitiveness versus lower-cost producers, hampers ability to invest in productivity improvements, and raises the bar for sustainable profit recovery.

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 free cash flow improved, but profitability has deteriorated sharply with gross margin falling to 10.2% (2025) and net margin at just 0.38%. Balance sheet leverage is manageable (debt-to-equity 0.74) with a solid equity ratio (54.2%), but ROE is weak (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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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: Positive
• 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 197.16, above the 50-day MA of 187.19, and below the 200-day MA of 220.69, indicating a neutral trend. The MACD of 4.49 indicates Positive momentum. The RSI at 47.76 is Neutral, neither overbought nor oversold. The STOCH value of 18.04 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	66 Neutral	₹7.00B	73.65	―	―	5.54%	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
NAHARPOLY	60 Neutral	₹5.62B	7.41	―	0.41%	8.64%	182.96%
SHIVATEX	59 Neutral	₹2.01B	36.61	―	0.33%	15.16%	780.57%
NAHARSPING	53 Neutral	₹7.07B	-13.61	―	0.51%	3.67%	―
MARALOVER	47 Neutral	₹1.88B	8.66	―	―	-0.90%	-304.07%
BASML	44 Neutral	₹1.75B	22.90	―	―	-8.50%	―