Nahar Spinning Mills Ltd (NAHARSPING) AI Stock Analysis

• Market Cap: ₹7.56B
• Dividend Yield: 0.51%
• Average Volume (3M): 1.49K
• Price to Earnings (P/E): ―
• 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): -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: ₹213.00 ▲(11.43% 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

Revenue Growth

An 11.2% year-over-year revenue increase indicates expanding sales volume or market penetration, which supports higher capacity utilization and fixed-cost absorption. Sustained top-line growth provides a foundation to rebuild margins, fund targeted investments, and improve long-term operational leverage.

Balance Sheet Stability

Manageable leverage (debt/equity 0.74) and a 54.2% equity ratio imply a solid capital structure relative to cyclical textiles. This structural strength preserves borrowing capacity for working capital and selective capex, helping the company weather industry cycles without excessive refinancing risk.

Improving Cash Generation

High operating cash flow relative to net income and a materially improved free cash flow profile show the company converts earnings into cash effectively. Durable cash generation reduces dependence on external financing, supports ongoing operations and maintenance capex, and provides flexibility to address margin pressures.

Negative Factors

Severe Margin Compression

A collapse in gross margin from 41.7% to 10.2% over three years, with net margin near zero, signals a structural hit to profitability. Persistent margin erosion undermines pricing power and cash cushions, making the business vulnerable to input-cost shocks and limiting capacity to invest or return capital to shareholders.

Low Return on Equity

ROE of 0.83% reflects minimal returns on shareholders' capital despite a solid equity base. Persistently low ROE constrains the company's ability to self-fund growth or justify reinvestment, and may pressure management to either overhaul operations or seek higher-return business initiatives to restore shareholder value.

Operational Margin Weakness

Material weakening of EBIT/EBITDA margins points to rising operating costs or loss of efficiency in manufacturing and processing. If structural, these inefficiencies raise unit costs, reduce competitiveness on price-sensitive yarn, and limit funds available for modernization or quality upgrades, risking longer-term market share decline.

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

The company primarily makes money by manufacturing and selling yarn and other textile outputs produced from cotton and blended fibers. Revenue is generated from (1) domestic sales to textile mills, fabric manufacturers, and other industrial buyers that use yarn as an input, and (2) export sales where applicable, depending on demand and price competitiveness in international yarn markets. Earnings are influenced by volume shipped and realizations per unit, which in turn depend on raw material costs (especially cotton), conversion costs (power, labor, and plant efficiency), product mix (count/blend/quality), and prevailing yarn price cycles. Specific information on additional revenue streams (e.g., branded retail, contract manufacturing, or named strategic partnerships) is null.

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	32.86B	32.85B	29.55B	27.36B	34.82B	20.88B
Gross Profit	4.55B	3.34B	7.62B	1.90B	14.53B	7.24B
EBITDA	2.05B	1.91B	921.37M	2.56B	8.24B	1.96B
Net Income	344.87M	123.53M	-510.84M	1.11B	5.02B	414.15M
Balance Sheet
Total Assets	24.81B	27.50B	28.89B	25.14B	29.51B	22.02B
Cash, Cash Equivalents and Short-Term Investments	31.25M	331.57M	9.02M	672.02M	30.11M	10.67M
Total Debt	7.60B	11.01B	11.51B	7.30B	10.13B	10.74B
Total Liabilities	9.46B	12.60B	14.08B	9.60B	13.50B	13.04B
Stockholders Equity	15.35B	14.89B	14.81B	15.54B	16.01B	8.98B
Cash Flow
Free Cash Flow	3.22B	367.23M	-6.08B	3.38B	1.55B	-1.58B
Operating Cash Flow	3.32B	819.39M	-3.95B	6.09B	2.61B	-853.10M
Investing Cash Flow	-110.19M	34.19M	-493.18M	-2.57B	-1.61B	-531.89M
Financing Cash Flow	-3.51B	-537.42M	3.93B	-3.03B	-985.38M	1.36B

Nahar Spinning Mills Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 191.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NAHARSPING, the sentiment is Positive. The current price of 191.15 is below the 20-day moving average (MA) of 198.50, above the 50-day MA of 187.52, and below the 200-day MA of 215.46, indicating a neutral trend. The MACD of 2.80 indicates Negative momentum. The RSI at 59.96 is Neutral, neither overbought nor oversold. The STOCH value of 83.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	₹6.22B	73.65	―	―	5.54%	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
NAHARPOLY	60 Neutral	₹5.89B	7.41	―	0.41%	8.64%	182.96%
SHIVATEX	59 Neutral	₹1.76B	36.61	―	0.33%	15.16%	780.57%
NAHARSPING	53 Neutral	₹7.56B	-13.61	―	0.51%	3.67%	―
MARALOVER	47 Neutral	₹1.66B	8.66	―	―	-0.90%	-304.07%
BASML	44 Neutral	₹1.60B	22.90	―	―	-8.50%	―