ScoreWhy is Nahar Spinning Mills Ltd ?
1
Weak Long Term Fundamental Strength with a -9.96% CAGR growth in Operating Profits over the last 5 years
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 6.24 times
- The company has been able to generate a Return on Equity (avg) of 8.26% signifying low profitability per unit of shareholders funds
2
With a growth in Net Profit of 337.84%, the company declared Very Positive results in Jun 26
- OPERATING PROFIT TO INTEREST(Q) Highest at 6.82 times
- NET SALES(Q) Highest at Rs 966.10 cr
- PBDIT(Q) Highest at Rs 127.11 cr.
3
With ROCE of 2.7, it has a Attractive valuation with a 0.9 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 46.28%, its profits have risen by 38.8% ; the PEG ratio of the company is 1.4
4
Despite the size of the company, domestic mutual funds hold only 0.03% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Nahar Spinning should be less than 10%
- Overall Portfolio exposure to Garments & Apparels should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Garments & Apparels)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Nahar Spinning for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Nahar Spinning
45.18%
1.20
38.55%
Sensex
-2.09%
-0.16
13.56%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
8.79%
EBIT Growth (5y)
-9.96%
EBIT to Interest (avg)
3.47
Debt to EBITDA (avg)
5.63
Net Debt to Equity (avg)
0.65
Sales to Capital Employed (avg)
1.36
Tax Ratio
16.21%
Dividend Payout Ratio
29.23%
Pledged Shares
0
Institutional Holding
0.01%
ROCE (avg)
9.77%
ROE (avg)
8.26%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
53
Industry P/E
25
Price to Book Value
0.79
EV to EBIT
32.84
EV to EBITDA
13.79
EV to Capital Employed
0.87
EV to Sales
0.68
PEG Ratio
1.36
Dividend Yield
0.30%
ROCE (Latest)
2.65%
ROE (Latest)
1.50%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend25What is working for the Company
OPERATING PROFIT TO INTEREST(Q)
Highest at 6.82 times
NET SALES(Q)
Highest at Rs 966.10 cr
PBDIT(Q)
Highest at Rs 127.11 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 13.16%
PBT LESS OI(Q)
Highest at Rs 83.98 cr.
PAT(Q)
Highest at Rs 69.89 cr.
EPS(Q)
Highest at Rs 19.38
-5What is not working for the Company
INTEREST(Q)
Highest at Rs 18.63 cr
Loading Valuation Snapshot...
Here's what is working for Nahar Spinning
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 83.98 cr has Grown at 377.16%
Year on Year (YoY)MOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 69.89 cr has Grown at 333.2%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Operating Profit to Interest - Quarterly
Highest at 6.82 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Sales - Quarterly
Highest at Rs 966.10 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 127.11 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 13.16%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 83.98 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 69.89 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 19.38
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Nahar Spinning
Interest - Quarterly
At Rs 18.63 cr has Grown at 45.32%
Quarter on Quarter (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Interest - Quarterly
Highest at Rs 18.63 cr
in the last five quarters and Increased by 45.32 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Non Operating Income - Quarterly
Highest at Rs 9.42 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
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