Nath Industries Ltd Stock Falls to 52-Week Low of Rs.56.9

Stock Price Movement and Market Context

On 17 Feb 2026, Nath Industries Ltd’s share price reached Rs.56.9, the lowest level recorded in the past year. This new low comes after a sequence of four consecutive days of decline, although the stock showed a modest gain today, rising by 0.28%, in line with sector performance. Despite this slight uptick, the stock remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a sustained bearish trend.

In contrast, the broader market, represented by the Sensex, opened flat but gained 0.14% to trade at 83,390.27 points, remaining within 3.32% of its 52-week high of 86,159.02. The Sensex’s 50-day moving average is positioned above its 200-day moving average, signalling underlying market strength, particularly led by mega-cap stocks. Nath Industries’ performance diverges sharply from this positive market momentum.

Long-Term Performance and Relative Returns

Over the past year, Nath Industries Ltd has delivered a negative return of -26.36%, significantly underperforming the Sensex’s positive 9.71% gain during the same period. This underperformance extends beyond the last year, with the stock consistently lagging behind the BSE500 index across the previous three annual periods. The 52-week high for the stock was Rs.96.6, underscoring the steep decline to the current low.

Financial Metrics and Profitability Analysis

The company’s financial indicators reveal challenges in profitability and debt servicing capacity. Nath Industries has recorded a weak compound annual growth rate (CAGR) of -4.47% in operating profits over the last five years, reflecting a contraction in core earnings. The average EBIT to interest ratio stands at a modest 1.90, signalling limited ability to comfortably cover interest expenses from operating earnings.

Return on Equity (ROE) averages at 3.72%, indicating low profitability generated per unit of shareholders’ funds. Quarterly financials further highlight pressures, with the latest Profit After Tax (PAT) at Rs.0.56 crore, down by 86.8% compared to the previous four-quarter average. Operating profit to interest ratio for the quarter has declined to 1.11 times, the lowest recorded, while PBDIT (Profit Before Depreciation, Interest and Taxes) dropped to Rs.2.91 crore, also the lowest quarterly figure.

Valuation and Comparative Assessment

Despite the subdued earnings and stock price performance, Nath Industries exhibits a very attractive valuation profile. The company’s Return on Capital Employed (ROCE) is reported at 5%, and it trades at an enterprise value to capital employed ratio of 0.6, suggesting the market is pricing the stock at a discount relative to the capital base. This valuation is lower than the historical averages observed among its peers in the Paper, Forest & Jute Products sector.

Interestingly, while the stock price has declined by over a quarter in the last year, the company’s profits have risen by 104.4% during the same period, resulting in a low Price/Earnings to Growth (PEG) ratio of 0.1. This divergence between profit growth and share price performance highlights a disconnect that may be influenced by broader market sentiment and fundamental concerns.

Shareholding and Sector Position

The majority shareholding in Nath Industries Ltd remains with the promoters, maintaining control over strategic decisions. The company operates within the Paper, Forest & Jute Products sector, which has seen mixed performance in recent periods. Nath Industries’ Mojo Score currently stands at 17.0, with a Mojo Grade of Strong Sell, upgraded from Sell on 22 Dec 2025, reflecting ongoing concerns about the company’s fundamentals and market position.

Its market capitalisation grade is rated at 4, indicating a relatively small market cap within its sector. The stock’s recent price movement and fundamental metrics continue to reflect the challenges faced by the company in regaining investor confidence and market share.

Summary of Key Financial and Market Indicators

- New 52-week low price: Rs.56.9
- 1-year stock return: -26.36%
- Sensex 1-year return: +9.71%
- Operating profit CAGR (5 years): -4.47%
- EBIT to interest ratio (average): 1.90
- ROE (average): 3.72%
- Latest quarterly PAT: Rs.0.56 crore (-86.8%)
- Quarterly PBDIT: Rs.2.91 crore (lowest)
- ROCE: 5%
- Enterprise value to capital employed: 0.6
- Mojo Score: 17.0 (Strong Sell)
- Market Cap Grade: 4

The stock’s current position at a 52-week low underscores the ongoing challenges Nath Industries Ltd faces in terms of profitability, valuation, and market performance relative to its sector and broader indices.

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