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
Flat results in Mar 26
- PAT(Latest six months) At Rs 10.92 cr has Grown at -56.06%
3
With ROCE of 2.7, it has a Attractive valuation with a 0.8 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 -6.90%, its profits have risen by 38.8% ; the PEG ratio of the company is 1.1
4
Rising Promoter Confidence
- Promoters have increased their stake in the company by 0.53% over the previous quarter and currently hold 67.96% of the company
- Promoters increasing their stake is a sign of high confidence in the future of the business
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -6.90% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
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, Medium Return
Absolute
Risk Adjusted
Volatility
Nahar Spinning
-6.9%
-0.18
37.69%
Sensex
-7.55%
-0.58
13.06%
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
-7.07%
Pledged Shares
0
Institutional Holding
0.09%
ROCE (avg)
9.77%
ROE (avg)
8.26%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
42
Industry P/E
23
Price to Book Value
0.62
EV to EBIT
29.06
EV to EBITDA
12.21
EV to Capital Employed
0.77
EV to Sales
0.60
PEG Ratio
1.07
Dividend Yield
0.38%
ROCE (Latest)
2.65%
ROE (Latest)
1.50%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
Bearish
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend6What is working for the Company
OPERATING PROFIT TO INTEREST(Q)
Highest at 4.60 times
NET SALES(Q)
Highest at Rs 916.82 cr
PBT LESS OI(Q)
Highest at Rs 23.65 cr.
PAT(Q)
Highest at Rs 23.61 cr.
EPS(Q)
Highest at Rs 6.49
-5What is not working for the Company
PAT(Latest six months)
At Rs 10.92 cr has Grown at -56.06%
Loading Valuation Snapshot...
Here's what is working for Nahar Spinning
Operating Profit to Interest - Quarterly
Highest at 4.60 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 916.82 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 23.65 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 23.61 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 6.49
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
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