Is Nahar Spinning overvalued or undervalued?

As of 14 November 2025, the valuation grade for Nahar Spinning has moved from very attractive to attractive. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE ratio of 20.11, an EV to EBITDA of 9.58, and a Price to Book Value of 0.49, which suggest that the stock is trading at a discount compared to its intrinsic value.
In comparison to its peers, Nahar Spinning's PE ratio is significantly lower than K P R Mill Ltd, which is at 43.91, and Trident, which stands at 32.4. The PEG ratio of 0.08 further indicates that Nahar Spinning is undervalued relative to its growth potential, especially when compared to peers like Vardhman Textile with a PEG of 2.7. Despite recent underperformance relative to the Sensex, the long-term outlook remains positive, as evidenced by a substantial 404.70% return over the past five years.