Nahar Spinning Mills Reports Strong Financial Performance Amid Rising Interest Expenses Challenges

Nahar Spinning Mills, a small-cap player in the Garments & Apparels industry, has recently undergone an evaluation adjustment that reflects notable shifts in its financial metrics. The company reported a very positive financial performance for the quarter ending March 2025, with key indicators reaching new highs. Operating profit to interest ratio stood at 3.26 times, while net sales peaked at Rs 875.60 crore. Additionally, the profit before depreciation, interest, and taxes (PBDIT) was recorded at Rs 66.23 crore, and the profit after tax (PAT) reached Rs 23.32 crore, showcasing robust operational efficiency.
However, the company faces challenges, particularly with interest expenses growing at 35.18%, which may impact its ability to service debt, as indicated by a high debt to EBITDA ratio of 6.13 times. Despite these concerns, Nahar Spinning Mills has demonstrated a significant annual growth rate of 41.64% in operating profit, contributing to a favorable valuation landscape with a PEG ratio of 0.48.

The technical landscape has shifted to a mildly bearish trend, indicating a complex market position. Overall, the recent evaluation adjustment highlights the dual nature of Nahar Spinning Mills' performance, balancing strong financial metrics against emerging challenges.

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