Is Nahar Spinning overvalued or undervalued?

As of 29 August 2025, the valuation grade for Nahar Spinning has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued. Key ratios supporting this assessment include a PE Ratio of 30.77, an EV to EBITDA of 10.98, and a PEG Ratio of 0.15, which suggests that the stock is priced favorably relative to its growth potential.
In comparison to its peers, Nahar Spinning's valuation metrics stand out. For instance, K P R Mill Ltd is categorized as very expensive with a PE Ratio of 40.98, while Trident, rated fair, has a PE Ratio of 32.02. This positions Nahar Spinning favorably within the industry, especially given its low PEG Ratio compared to peers like Vardhman Textile, which has a PEG of 0.89. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -21.06% compared to a 2.14% gain for the index, further emphasizing its undervaluation potential.