Nahar Spinning Mills Ltd Stock Falls to 52-Week Low of Rs.150

Stock Price Movement and Volatility

On 27 Jan 2026, Nahar Spinning Mills Ltd opened with a notable gap up of 10.14%, reaching an intraday high of Rs.170. However, the stock reversed course sharply, touching an intraday low of Rs.150, which represents the new 52-week low. The day ended with a decline of 1.65%, underperforming its sector by 2.23%. The stock exhibited high volatility throughout the session, with an intraday volatility of 9.72%, calculated from the weighted average price.

Technical indicators show the stock trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent bearish momentum. This technical positioning underscores the challenges the stock faces in regaining upward traction in the near term.

Market Context and Sector Performance

While the broader market, represented by the Sensex, recovered sharply after a negative opening—rising 420.69 points to close at 81,857.48, a gain of 0.39%—Nahar Spinning Mills Ltd did not participate in this rally. The Sensex has experienced a mild decline of 0.39% over the past three days, with mega-cap stocks leading the gains. Meanwhile, the S&P BSE Metal index hit a new 52-week high, highlighting sectoral divergences within the market.

Over the last year, Nahar Spinning Mills Ltd has underperformed significantly, delivering a negative return of 30.05%, compared to the Sensex’s positive 8.61% gain. The stock’s 52-week high was Rs.311, indicating a substantial drop of over 50% from its peak.

Financial Metrics and Credit Profile

Nahar Spinning Mills Ltd’s credit metrics remain a concern, with a high Debt to EBITDA ratio of 4.64 times, indicating a relatively low capacity to service its debt obligations. This elevated leverage level has contributed to the stock’s downgrade from a Hold to a Sell rating by MarketsMOJO on 30 Dec 2025, reflected in its current Mojo Score of 46.0 and Mojo Grade of Sell. The company’s Market Cap Grade stands at 4, signalling a mid-tier market capitalisation within its sector.

Despite the challenging debt profile, the company has demonstrated healthy long-term growth in operating profit, which has increased at an annual rate of 39.33%. Additionally, the company has reported positive results for the last three consecutive quarters, with a Profit After Tax (PAT) of Rs.35.04 crores for the nine-month period, representing a remarkable growth of 493.47% year-on-year.

Valuation and Profitability Indicators

From a valuation standpoint, Nahar Spinning Mills Ltd presents an attractive profile. The company’s Return on Capital Employed (ROCE) stands at 4.1%, and it maintains a low Enterprise Value to Capital Employed ratio of 0.6, suggesting undervaluation relative to its capital base. The stock trades at a discount compared to its peers’ average historical valuations, with a Price/Earnings to Growth (PEG) ratio of 0.1, reflecting the disconnect between its rising profits and declining share price.

Over the past year, while the stock price has declined by 30.05%, the company’s profits have surged by 261.4%, highlighting a divergence between market sentiment and underlying earnings performance.

Shareholding and Sector Position

The majority shareholding of Nahar Spinning Mills Ltd remains with its promoters, maintaining a stable ownership structure. The company operates within the Garments & Apparels industry and sector, which has seen mixed performance in recent months. While some indices within the broader market have reached new highs, Nahar Spinning Mills Ltd’s stock continues to face downward pressure, reflecting sector-specific and company-specific factors.

Its consistent underperformance against the benchmark indices over the last three years, including the BSE500, has been a notable feature. The stock’s returns have lagged the broader market in each of the last three annual periods, underscoring the challenges faced in delivering shareholder value relative to peers.

Summary of Key Performance Indicators

To summarise, Nahar Spinning Mills Ltd’s stock has reached a new 52-week low of Rs.150 after a sustained seven-day decline. The stock’s technical indicators remain weak, trading below all major moving averages. Despite a strong recovery in the broader market and sectoral indices, the stock has underperformed significantly over the past year and longer term.

Financially, the company shows a mixed picture: strong profit growth and attractive valuation metrics contrast with a high debt burden and subdued returns on capital. The downgrade to a Sell rating by MarketsMOJO reflects these concerns, alongside the stock’s ongoing price weakness.

Investors and market participants will continue to monitor the stock’s performance in the context of these financial and market dynamics.

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