BSE:519136

Stock Analysis Report

Nahar Industrial Enterprises

Executive Summary

Nahar Industrial Enterprises Limited, an integrated textile manufacturer, engages in spinning, weaving, processing, and selling textiles in India.

Rewards

Trading at 80.8% below its fair value

Risk Analysis

Earnings have declined by -9.11% per year over past 5 years

Interest payments are not well covered by earnings

Does not have a meaningful market cap (₹1B)



Snowflake Analysis

Adequate balance sheet and fair value.

Share Price & News

How has Nahar Industrial Enterprises's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 519136 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.7%

519136

0.2%

IN Luxury

-0.4%

IN Market


1 Year Return

-32.2%

519136

16.6%

IN Luxury

11.1%

IN Market

Return vs Industry: 519136 underperformed the Indian Luxury industry which returned 16.6% over the past year.

Return vs Market: 519136 underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

519136IndustryMarket
7 Day-1.7%0.2%-0.4%
30 Day-17.1%3.3%-1.2%
90 Day10.8%8.5%3.3%
1 Year-32.2%-32.2%17.3%16.6%13.0%11.1%
3 Year-78.0%-78.2%53.8%52.0%25.3%18.6%
5 Year-51.0%-51.9%103.0%96.4%35.4%23.1%

Price Volatility Vs. Market

How volatile is Nahar Industrial Enterprises's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Nahar Industrial Enterprises undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 519136 (₹25.65) is trading below our estimate of fair value (₹133.3)

Significantly Below Fair Value: 519136 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 519136 is unprofitable, so we can't compare its PE Ratio to the Luxury industry average.

PE vs Market: 519136 is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 519136's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 519136 is good value based on its PB Ratio (0.2x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is Nahar Industrial Enterprises forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.8%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Nahar Industrial Enterprises has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Nahar Industrial Enterprises performed over the past 5 years?

-9.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 519136 is currently unprofitable.

Growing Profit Margin: 519136 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 519136 is unprofitable, and losses have increased over the past 5 years at a rate of -9.1% per year.

Accelerating Growth: Unable to compare 519136's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 519136 is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (2.7%).


Return on Equity

High ROE: 519136 has a negative Return on Equity (-3.09%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Nahar Industrial Enterprises's financial position?


Financial Position Analysis

Short Term Liabilities: 519136's short term assets (₹10.8B) exceed its short term liabilities (₹8.4B).

Long Term Liabilities: 519136's short term assets (₹10.8B) exceed its long term liabilities (₹2.5B).


Debt to Equity History and Analysis

Debt Level: 519136's debt to equity ratio (120.4%) is considered high.

Reducing Debt: 519136's debt to equity ratio has reduced from 172.3% to 120.4% over the past 5 years.


Balance Sheet

Inventory Level: 519136 has a high level of physical assets or inventory.

Debt Coverage by Assets: 519136's debt is covered by short term assets (assets are 1.3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 519136 has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: Insufficient data to determine if 519136 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Nahar Industrial Enterprises's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.5%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 519136's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 519136's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 519136's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 519136's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 519136 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 519136's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.0yrs

Average board tenure


CEO

Kamal Oswal (57yo)

22yrs

Tenure

₹26,156,040

Compensation

Mr. Kamal Oswal serves as Vice Chairman of Nahar Industrial Enterprises Ltd. and has been its Managing Director since February 1, 1998. Mr. Oswal served as the Managing Director, Chief Executive Officer an ...


CEO Compensation Analysis

Compensation vs Market: Kamal's total compensation ($USD365.75K) is above average for companies of similar size in the Indian market ($USD50.14K).

Compensation vs Earnings: Kamal's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Kamal Oswal
Vice Chairman & MD22yrs₹26.16m0.0032% 33.2k
Suresh Singla
Independent Non Executive Director2.4yrs₹50.00kno data
Dinesh Oswal
Non-Executive Director0yrs₹70.00k0.000080% 817.4
Dinesh Gogna
Non-Executive Director0yrs₹70.00k0.00026% 2.7k
Harbhajan Bal
Independent Non-Executive Director18.7yrs₹70.00kno data
Jawahar Oswal
Non-Executive Chairman0yrs₹60.00k0.0025% 25.6k
Navdeep Sharma
Non-Executive Director4.5yrs₹70.00kno data
Ajit Chatha
Independent Non-Executive Director6.9yrs₹50.00kno data
Amrik Sohi
Independent Non-Executive Director8.5yrs₹30.00kno data
Vijay Asdhir
Independent Non-Executive Director5yrs₹70.00kno data

6.0yrs

Average Tenure

70.5yo

Average Age

Experienced Board: 519136's board of directors are considered experienced (6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Nahar Industrial Enterprises Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nahar Industrial Enterprises Limited
  • Ticker: 519136
  • Exchange: BSE
  • Founded: 1983
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹1.022b
  • Shares outstanding: 39.84m
  • Website: https://www.owmnahar.com/nahar_ie/about.php

Number of Employees


Location

  • Nahar Industrial Enterprises Limited
  • Focal Point
  • Ludhiana
  • Punjab
  • 141010
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
519136BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 1996
NAHARINDUSNSEI (National Stock Exchange of India)YesEquity SharesININRMay 1996

Biography

Nahar Industrial Enterprises Limited, an integrated textile manufacturer, engages in spinning, weaving, processing, and selling textiles in India. It operates through two segments, Textile and Sugar. The company offers cotton, dyed cotton, compact spun, blended, polyester, industrial, open end, open end slub, TFO, specialized, Eli twist, core spun, and vortex yarns. It also provides various fabrics, including piece dyed, yarn dyed, and printed fabrics, as well as specialty and performance fabrics, and indigo yarn dyed shirting for use in apparels and home furnishings. In addition, the company produces various types and grades of sugar and allied products; and operates biomass/multi-fuel cogeneration power plants at Lalru and Amloh, Punjab. The company was formerly known as Oswal Fats & Oils Limited and changed its name to Nahar Industrial Enterprises Limited in 1994. Nahar Industrial Enterprises Limited was incorporated in 1983 and is based in Ludhiana, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 12:31
End of Day Share Price2020/02/14 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.