Nahar Spinning Mills Ltd Falls to 52-Week Low Amidst Continued Market Pressure

Stock Price Movement and Market Context

On 21 Jan 2026, Nahar Spinning Mills Ltd’s share price declined by 4.40% intraday, reaching an intraday low of Rs.152.15. This marks the lowest price level for the stock in the past year, down sharply from its 52-week high of Rs.311. The stock has been on a consecutive four-day losing streak, resulting in a cumulative return of -16.97% over this period. This underperformance is more pronounced when compared to the Textile sector’s decline of 2.2% and the Sensex’s fall of 0.76% on the same day.

The broader market environment has been challenging, with the Sensex opening 385.82 points lower and closing down by 242.19 points at 81,552.46. The index is currently trading below its 50-day moving average, although the 50DMA remains above the 200DMA, indicating some underlying resilience. Notably, the Sensex has experienced a three-week consecutive decline, losing 4.91% in this timeframe.

Nahar Spinning Mills Ltd’s stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum. The stock’s performance over the last year has been notably weak, delivering a negative return of 37.04%, in stark contrast to the Sensex’s positive 7.54% return over the same period.

Financial Metrics and Credit Profile

One of the critical factors weighing on Nahar Spinning Mills Ltd’s stock performance is its elevated debt burden. The company’s Debt to EBITDA ratio stands at 4.64 times, indicating a relatively low capacity to service its debt obligations. This metric has contributed to the stock’s downgrade from a Hold to a Sell rating by MarketsMOJO as of 30 Dec 2025, with the current Mojo Score at 46.0 and a Mojo Grade of Sell. The company’s market capitalisation grade is rated 4, reflecting its mid-tier market presence within the Garments & Apparels sector.

Despite the debt concerns, the company has demonstrated healthy long-term growth in operating profit, which has increased at an annual rate of 39.33%. Additionally, Nahar Spinning Mills Ltd has reported positive results for the last three consecutive quarters, with a notable growth in Profit After Tax (PAT) for the nine-month period reaching Rs.35.04 crores, representing an impressive 493.47% increase.

Valuation and Profitability Indicators

The company’s Return on Capital Employed (ROCE) is recorded at 4.1%, which, while modest, is accompanied by a very attractive valuation metric. The Enterprise Value to Capital Employed ratio stands at 0.6, suggesting that the stock is trading at a discount relative to its peers’ average historical valuations. This valuation discount is further underscored by the company’s Price/Earnings to Growth (PEG) ratio of 0.1, indicating that profits have grown substantially—by 261.4% over the past year—even as the stock price has declined.

However, the stock’s consistent underperformance against benchmarks remains a concern. Over the last three years, Nahar Spinning Mills Ltd has underperformed the BSE500 index in each annual period, reflecting challenges in delivering shareholder returns despite profit growth. The stock’s 1-year return of -37.04% contrasts sharply with the Sensex’s positive 7.54% return, highlighting the divergence in performance.

Shareholding and Sectoral Position

The majority shareholding of Nahar Spinning Mills Ltd remains with the promoters, providing a stable ownership structure. The company operates within the Garments & Apparels industry, a sector that has experienced a decline of 2.2% on the day, mirroring broader textile sector pressures. The stock’s underperformance relative to its sector peers and the overall market has been a persistent theme, as reflected in its current Mojo Grade downgrade and the recent price movements.

Summary of Key Price and Performance Indicators

To summarise, Nahar Spinning Mills Ltd’s stock has reached a 52-week low of Rs.152.15, down from a high of Rs.311 within the last year. The stock’s recent four-day decline has resulted in a near 17% loss, underperforming both the sector and benchmark indices. The company’s financial profile is characterised by a high Debt to EBITDA ratio of 4.64 times, modest ROCE of 4.1%, and a valuation discount relative to peers. Despite robust profit growth and positive quarterly results, the stock continues to face challenges in delivering returns aligned with market benchmarks.

These factors collectively contribute to the current market sentiment and the stock’s position at its lowest price point in the past year.

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