Recent Price Movement and Market Context
On 12 Jan 2026, Nahar Spinning Mills Ltd's share price touched an intraday low of Rs.179.55, closing with a day change of -2.81%. This decline extended a three-day losing streak, during which the stock has fallen by 6.31%. The stock's performance today lagged behind the Garments & Apparels sector, which itself declined by 2.09%, with Nahar Spinning underperforming the sector by 0.72%.
The broader market context saw the Sensex open 140.93 points lower and close down by 522.03 points at 82,913.28, a 0.79% drop. Despite this, the Sensex remains within 3.91% of its 52-week high of 86,159.02. Notably, the Sensex is trading below its 50-day moving average, though the 50DMA remains above the 200DMA, indicating mixed technical signals.
Technical Indicators and Moving Averages
Nahar Spinning Mills is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This broad weakness across technical indicators underscores the downward momentum in the stock price. The 52-week high for the stock was Rs.311, highlighting the extent of the recent decline.
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Financial Performance and Valuation Metrics
Over the past year, Nahar Spinning Mills Ltd has delivered a total return of -26.80%, significantly underperforming the Sensex, which posted a 7.14% gain over the same period. The stock has also consistently underperformed the BSE500 index in each of the last three annual periods, reflecting persistent challenges in market performance relative to peers.
One of the key concerns is the company's elevated Debt to EBITDA ratio of 4.64 times, indicating a relatively low capacity to service its debt obligations. This metric contributes to the stock's current Mojo Grade of Sell, downgraded from Hold on 30 Dec 2025, with a Mojo Score of 46.0. The market capitalisation grade stands at 4, reflecting modest market valuation relative to company fundamentals.
Profitability and Growth Trends
Despite the share price decline, the company has demonstrated healthy long-term growth in operating profit, which has increased at an annual rate of 39.33%. The latest six-month period saw a notable rise in profit after tax (PAT) to Rs.11.72 crores, representing a growth of 237.35%. Over the past year, profits have surged by 261.4%, resulting in a low PEG ratio of 0.1, which suggests that the stock is trading at a discount relative to its earnings growth.
Return on Capital Employed (ROCE) stands at 4.1%, and the enterprise value to capital employed ratio is 0.6, indicating an attractive valuation compared to peers' historical averages. The company has also reported positive results for three consecutive quarters, signalling operational improvements despite the share price pressures.
Shareholding and Sectoral Position
The majority shareholding remains with promoters, maintaining a stable ownership structure. The company operates within the Garments & Apparels industry, a sector that has experienced a decline of 2.09% on the day, reflecting broader sectoral headwinds that have contributed to the stock's recent performance.
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Summary of Key Concerns and Market Position
The stock's fall to Rs.179.55, its lowest level in 52 weeks, reflects a combination of factors including its high leverage, consistent underperformance relative to benchmarks, and sectoral pressures. Trading below all major moving averages, the stock has seen a sustained downtrend over recent sessions. While profitability metrics show improvement, the market has yet to reflect these gains in the share price.
In comparison, the Sensex remains relatively resilient, trading close to its 52-week high, highlighting the divergence between the broader market and Nahar Spinning Mills Ltd's share price trajectory. The company's valuation metrics suggest it is priced attractively relative to earnings growth, but the elevated debt burden and historical underperformance weigh on investor sentiment.
Technical and Fundamental Overview
Technically, the stock's position below all key moving averages signals continued caution among market participants. Fundamentally, while the company has demonstrated strong profit growth and positive quarterly results, the high Debt to EBITDA ratio remains a critical factor influencing the stock's rating and market perception.
Overall, the stock's current status at a 52-week low encapsulates the challenges faced by Nahar Spinning Mills Ltd in balancing growth prospects with financial leverage and market expectations.
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