Stock Price Movement and Market Context
On 22 January 2026, Nath Industries Ltd opened with a gap down of -3.17%, continuing its losing streak for the second consecutive day. The stock underperformed its sector by 3.01%, closing near its intraday low of Rs.58, which represents the lowest price level in the past 52 weeks. Over the last two days, the stock has declined by a cumulative -3.05%, underscoring persistent selling pressure.
Technical indicators reveal that Nath Industries is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This broad-based weakness in technical momentum signals a lack of short- and long-term price support.
In contrast, the Sensex opened higher at 82,459.66 points, gaining 550.03 points (0.67%) before settling at 82,250.37, still up 0.42% on the day. Despite the Sensex being 4.75% below its 52-week high of 86,159.02, the benchmark index has experienced a three-week consecutive decline, losing 4.09% in that period. Mid-cap stocks led the market rally, with the BSE Mid Cap index gaining 1.02% on the same day.
Strong fundamentals, solid momentum, fair price – This Large Cap from the NBFC sector checks every box for our Top 1%. This should definitely be on your radar!
- - Complete fundamentals package
- - Technical momentum confirmed
- - Reasonable valuation entry
Long-Term Performance and Valuation Metrics
Over the past year, Nath Industries Ltd has delivered a negative return of -16.33%, significantly underperforming the Sensex, which posted a positive return of 7.65% during the same period. The stock’s 52-week high was Rs.96.60, indicating a substantial decline of approximately 40% from that peak.
The company’s long-term financial performance has been modest. Net sales have grown at an annualised rate of 13.96% over the last five years, while operating profit has increased at a slower pace of 10.79%. Return on Capital Employed (ROCE) remains subdued at an average of 4.55%, reflecting limited efficiency in generating returns from capital investments.
These factors contribute to the stock’s current Mojo Score of 32.0 and a Mojo Grade of Sell, which was downgraded from Strong Sell on 22 December 2025. The Market Cap Grade stands at 4, indicating a relatively low market capitalisation compared to peers.
Recent Financial Results and Profitability Trends
Despite the stock’s price weakness, Nath Industries has reported positive financial results in the last four consecutive quarters. The company’s Profit After Tax (PAT) for the latest six-month period stands at Rs.8.19 crore, reflecting an impressive growth rate of 744.33%. Net sales for the same period reached Rs.244.32 crore, up 32.84% year-on-year.
Profit growth over the past year has been particularly notable, with a rise of 1362.1%, suggesting improvements in operational efficiency or cost management. The company’s ROCE for the latest period is approximately 5, accompanied by a very attractive Enterprise Value to Capital Employed ratio of 0.6, indicating a valuation discount relative to capital employed.
Shareholding and Sectoral Positioning
The majority shareholding in Nath Industries Ltd is held by promoters, providing a stable ownership structure. The company operates within the Paper, Forest & Jute Products sector, which has experienced mixed performance in recent months. While the sector has seen some recovery, Nath Industries’ stock has lagged behind, reflecting company-specific valuation and performance factors.
Considering Nath Industries Ltd? Wait! SwitchER has found potentially better options in Paper, Forest & Jute Products and beyond. Compare this micro-cap with top-rated alternatives now!
- - Better options discovered
- - Paper, Forest & Jute Products + beyond scope
- - Top-rated alternatives ready
Summary of Key Concerns
The stock’s decline to Rs.58, its lowest level in a year, is underpinned by a combination of factors including weak long-term fundamental strength, modest growth rates, and underperformance relative to broader market indices and sector peers. The persistent trading below all major moving averages further highlights the subdued market sentiment towards the stock.
While recent profit growth and positive quarterly results indicate some operational improvements, these have not yet translated into sustained price recovery. The valuation metrics suggest the stock is trading at a discount, but this is reflective of the company’s current financial profile and market positioning.
Investors and market participants will continue to monitor Nath Industries’ financial trajectory and sector developments as the stock navigates this challenging phase.
Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →
