Nath Industries Ltd Stock Falls to 52-Week Low of Rs.55.27

Stock Price Movement and Market Context

On 20 Feb 2026, Nath Industries Ltd’s share price fell sharply, touching an intraday low of Rs.55.27, representing a 5.44% drop for the day and underperforming its sector by 5.67%. This decline followed two consecutive days of gains, signalling a reversal in short-term momentum. The stock is currently trading below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – indicating sustained downward pressure.

In contrast, the broader market showed resilience on the same day. The Sensex, after opening 225.65 points lower, rebounded strongly by 605.11 points to close at 82,877.60, up 0.46%. The index remains within 3.96% of its 52-week high of 86,159.02, supported by gains in mega-cap stocks. Despite this positive market environment, Nath Industries has continued to lag behind.

Long-Term Performance and Relative Underperformance

Over the past year, Nath Industries Ltd has delivered a negative return of 27.06%, significantly underperforming the Sensex, which posted a 9.43% gain over the same period. The stock’s 52-week high was Rs.96.60, highlighting the extent of the decline from its peak. Furthermore, the company has consistently underperformed the BSE500 index across the last three annual periods, reflecting persistent challenges in maintaining competitive performance.

Financial Metrics Highlighting Current Concerns

The company’s financial indicators reveal several areas of concern. Nath Industries has exhibited a weak long-term fundamental strength, with a compound annual growth rate (CAGR) of operating profits declining by 4.47% over the last five years. This negative growth trend has contributed to the stock’s deteriorating market performance.

Profitability metrics remain subdued. The average Return on Equity (ROE) stands at 3.72%, indicating limited profitability generated per unit of shareholders’ funds. Additionally, the company’s ability to service debt is constrained, with an average EBIT to interest coverage ratio of 1.90, reflecting a narrow margin to meet interest obligations.

Quarterly results further underscore the challenges. The Profit After Tax (PAT) for the latest quarter was Rs.0.56 crore, a steep decline of 86.8% compared to the previous four-quarter average. Operating profit to interest coverage for the quarter dropped to a low of 1.11 times, while PBDIT (Profit Before Depreciation, Interest and Taxes) reached a quarterly low of Rs.2.91 crore.

Valuation and Relative Attractiveness

Despite the weak financial performance, Nath Industries presents a valuation profile that some may find appealing. The company’s Return on Capital Employed (ROCE) is 5%, and it trades at a very attractive enterprise value to capital employed ratio of 0.6. This suggests that the stock is priced at a discount relative to its capital base.

Moreover, the stock’s price-to-earnings-to-growth (PEG) ratio is 0.1, reflecting a low valuation relative to its profit growth. Over the past year, profits have risen by 104.4%, a notable increase despite the stock’s negative price return. This divergence between profit growth and share price performance highlights the market’s cautious stance.

Shareholding and Market Grade

The majority ownership of Nath Industries Ltd rests with its promoters, maintaining a stable shareholding structure. However, the stock’s overall market sentiment is reflected in its Mojo Score of 17.0 and a Mojo Grade of Strong Sell, upgraded from Sell on 22 Dec 2025. The market capitalisation grade is rated at 4, indicating a relatively modest market cap within its sector.

Summary of Key Performance Indicators

To summarise, Nath Industries Ltd’s stock has reached a new 52-week low of Rs.55.27, reflecting ongoing challenges in financial performance and market positioning. The stock’s underperformance relative to the Sensex and its sector peers is evident in its negative one-year return of 27.06% and consistent lagging behind benchmark indices over multiple years.

Financially, the company faces pressure from declining operating profits, low profitability ratios, and limited debt servicing capacity. Quarterly results have shown marked declines in PAT and operating profit margins. Nonetheless, valuation metrics suggest the stock is trading at a discount compared to peers, with some indicators of profit growth contrasting with the share price trajectory.

Market sentiment remains cautious, as reflected in the Strong Sell Mojo Grade and the stock’s position below all major moving averages. While the broader market has shown strength recently, Nath Industries Ltd continues to face headwinds that have contributed to its current price levels.

Limited Period Only. Start at Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Get 71% Off →