Nahar Spinning Mills Ltd Gains 7.43%: 3 Key Factors Driving the Week’s Momentum

2 February 2026: Weak Start Amid Broader Market Decline

The week began on a subdued note for Nahar Spinning Mills Ltd, with the stock closing at ₹164.70, down 1.73% from the previous Friday’s close of ₹167.60. This decline coincided with a broader market sell-off, as the Sensex fell 1.03% to 35,814.09. Trading volume was modest at 455 shares, reflecting cautious investor sentiment amid sectoral uncertainties. The stock’s performance mirrored the garments and apparels sector’s challenges, weighed down by concerns over raw material costs and demand fluctuations.

3 February 2026: Sharp Rebound on Strong Volume

On 3 February, Nahar Spinning Mills Ltd staged a remarkable recovery, surging 12.08% to close at ₹184.60. This sharp gain was accompanied by a significant increase in volume, with 7,855 shares traded, signalling renewed investor interest. The Sensex also rebounded strongly, gaining 2.63% to 36,755.96, but the stock’s outperformance was notable. This rally reflected a technical bounce from recent lows and growing optimism about the company’s valuation and profit growth prospects.

4 February 2026: Continued Gains Amid Mixed Technical Signals

The stock extended its gains on 4 February, rising 1.46% to ₹187.30 on moderate volume of 3,740 shares. The Sensex also advanced 0.37% to 36,890.21. This day marked the stock’s weekly high, approaching the lower range of its 52-week high of ₹311.00. Technical indicators at this point showed a nuanced picture: while the MACD and KST remained bearish on weekly and monthly charts, the On-Balance Volume (OBV) was mildly bullish, suggesting accumulation despite the subdued momentum. The Relative Strength Index (RSI) hovered in neutral territory, indicating no immediate overbought or oversold conditions.

5 February 2026: Upgrade to Hold and Technical Momentum Shift

MarketsMOJO upgraded Nahar Spinning Mills Ltd from Sell to Hold on 4 February, citing improved technicals and valuation metrics. This upgrade was reflected in the stock’s 5 February performance, which saw a decline of 2.48% to ₹182.65 on low volume of 392 shares. Despite the price dip, the technical momentum shifted from bearish to mildly bearish, signalling a potential easing of downward pressure. The company’s Return on Capital Employed (ROCE) stood at 4.1%, and the Enterprise Value to Capital Employed ratio was an attractive 0.6, indicating undervaluation relative to capital employed. Profit growth was strong, with a 39.33% annual increase in operating profit and a 493.47% surge in PAT for the nine months ended December 2025, reaching ₹35.04 crores.

6 February 2026: Bearish Technical Signals Amid Price Correction

The week closed with a 1.42% decline to ₹180.05 on 6 February, as technical momentum shifted back towards a more pronounced bearish stance. The stock traded in a narrow range between ₹182.60 and ₹187.65, with volume picking up to 903 shares. Key indicators such as MACD and moving averages confirmed bearish trends, with the stock trading below its 50-day and 200-day averages. However, the OBV remained mildly bullish, suggesting some underlying buying interest. The Sensex closed marginally higher by 0.10% at 36,730.20, underscoring the stock’s relative weakness on the day. The downgrade in technical momentum highlights the ongoing challenges in the garments and apparels sector, including raw material cost pressures and demand uncertainties.

Key Takeaways

Strong Weekly Outperformance: Nahar Spinning Mills Ltd’s 7.43% weekly gain significantly outpaced the Sensex’s 1.51%, driven by a sharp rebound on 3 February and sustained interest despite sector headwinds.

Technical Momentum Mixed but Improving: The upgrade to Hold reflected improved technical and valuation metrics, with a shift from bearish to mildly bearish momentum. However, the late-week return to bearish signals highlights ongoing volatility and uncertainty.

Valuation and Profit Growth Attractive: The company’s ROCE of 4.1% and EV/Capital Employed ratio of 0.6 suggest undervaluation. Exceptional profit growth, including a 493.47% increase in PAT for the nine months ended December 2025, contrasts with the stock’s historical underperformance, indicating potential value.

Debt and Sector Risks Remain: Elevated debt levels (Debt to EBITDA of 4.64) and sectoral pressures temper enthusiasm, underscoring the need for cautious monitoring of financial stability and market conditions.

Conclusion

Nahar Spinning Mills Ltd’s week was characterised by a notable rebound and an upgrade to Hold, signalling a cautious but improved outlook. The stock’s 7.43% gain outperformed the broader market, supported by strong profit growth and attractive valuation metrics. However, mixed technical signals and persistent sector challenges suggest that investors should maintain a balanced view. The interplay of improving fundamentals and technical caution points to a stabilising stock that warrants close observation for clearer directional confirmation in the coming weeks.

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