Stock Price Movement and Market Context
On 4 December 2025, Nath Industries touched Rs.61, its lowest price in the past year. Despite this, the stock recorded a day change of 0.72%, outperforming its sector by 1.36%. The stock has shown modest gains over the last two days, accumulating a return of 1.03% during this period. However, it remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a sustained downward pressure on the price.
In contrast, the broader market, represented by the Sensex, experienced a recovery after an initial negative opening. The Sensex closed marginally higher by 0.03%, trading at 85,131.17 points, just 1.21% shy of its 52-week high of 86,159.02. The Sensex’s 50-day moving average remains above its 200-day moving average, signalling a generally bullish trend for the benchmark index. Mega-cap stocks led the market gains, highlighting a divergence between large-cap performance and Nath Industries’ current trajectory.
Long-Term Performance and Valuation Metrics
Over the past year, Nath Industries has recorded a total return of -11.56%, underperforming the Sensex, which posted a 5.16% return in the same period. The stock’s 52-week high was Rs.96.60, underscoring the extent of the recent decline. The company’s market capitalisation is graded at 4, reflecting its mid-sized presence within the sector.
From a fundamental perspective, Nath Industries exhibits a modest long-term return on capital employed (ROCE) averaging 4.55%. Net sales have shown a compound annual growth rate of 13.96% over the last five years, while operating profit has grown at an annual rate of 10.79%. These figures suggest moderate expansion but fall short of robust growth benchmarks typically favoured by the market.
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Recent Financial Results and Profitability
Despite the stock’s subdued price performance, Nath Industries has reported positive results for the last four consecutive quarters. The company’s profit after tax (PAT) for the latest six months stands at Rs.8.19 crores, reflecting a growth rate of 744.33%. Net sales for the same period reached Rs.244.32 crores, with a growth rate of 32.84%. These figures indicate an improvement in the company’s earnings and revenue generation in the near term.
The company’s ROCE for the latest period is approximately 5%, accompanied by an enterprise value to capital employed ratio of 0.6. This valuation metric suggests that Nath Industries is trading at a discount relative to its peers’ average historical valuations, potentially reflecting market caution or sector-specific headwinds.
Comparative Performance and Shareholding
Over the last three years, Nath Industries has underperformed the BSE500 index across multiple time frames, including the one-year and three-month periods. This underperformance highlights challenges in maintaining competitive returns within its sector. The majority shareholding remains with the company’s promoters, indicating stable ownership structure.
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Sectoral and Market Considerations
Nath Industries operates within the Paper, Forest & Jute Products sector, which has faced varied market conditions over the past year. While the broader market indices have shown resilience, sector-specific factors such as raw material costs, demand fluctuations, and competitive pressures have influenced stock performance. Nath Industries’ current valuation and price levels reflect these dynamics, as well as the company’s financial metrics and growth trajectory.
Although the stock has recently experienced a decline to its 52-week low, the company’s recent earnings growth and sales expansion provide a nuanced picture of its financial health. The divergence between stock price movement and earnings growth underscores the complexity of market valuation in this sector.
Summary of Key Metrics
Nath Industries’ stock price at Rs.61 marks its lowest point in the last 52 weeks, contrasting with a 52-week high of Rs.96.60. The stock’s one-year return of -11.56% contrasts with the Sensex’s positive 5.16% return. The company’s PAT growth of over 700% in the latest six months and net sales growth of nearly 33% highlight recent operational improvements. However, the long-term ROCE remains modest at around 4.55%, and the stock trades below all major moving averages.
These factors collectively illustrate the current state of Nath Industries within its sector and the broader market environment as of early December 2025.
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