Here's Why We Think Nahar Industrial Enterprises (NSE:NAHARINDUS) Might Deserve Your Attention Today

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone profit. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. Loss-making companies are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should.

In contrast to all that, many investors prefer to focus on companies like Nahar Industrial Enterprises (NSE:NAHARINDUS), which has not only revenues, but also profits. While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it.

See our latest analysis for Nahar Industrial Enterprises

How Fast Is Nahar Industrial Enterprises Growing Its Earnings Per Share?

Even when EPS earnings per share (EPS) growth is unexceptional, company value can be created if this rate is sustained each year. So it's no surprise that some investors are more inclined to invest in profitable businesses. Nahar Industrial Enterprises' EPS has risen over the last 12 months, growing from ₹28.90 to ₹35.48. There's little doubt shareholders would be happy with that 23% gain.

One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. EBIT margins for Nahar Industrial Enterprises remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 14% to ₹20b. That's encouraging news for the company!

You can take a look at the company's revenue and earnings growth trend, in the chart below. Click on the chart to see the exact numbers.

Since Nahar Industrial Enterprises is no giant, with a market capitalisation of ₹4.1b, you should definitely check its cash and debt before getting too excited about its prospects.

Are Nahar Industrial Enterprises Insiders Aligned With All Shareholders?

It's said that there's no smoke without fire. For investors, insider buying is often the smoke that indicates which stocks could set the market alight. This view is based on the possibility that stock purchases signal bullishness on behalf of the buyer. However, insiders are sometimes wrong, and we don't know the exact thinking behind their acquisitions.

One positive for Nahar Industrial Enterprises, is that company insiders spent ₹2.8m acquiring shares in the last year. While this investment may be modest, it is great considering the lack of insider selling. It is also worth noting that it was Vice Chairman & MD Kamal Oswal who made the biggest single purchase, worth ₹935k, paying ₹116 per share.

Does Nahar Industrial Enterprises Deserve A Spot On Your Watchlist?

One important encouraging feature of Nahar Industrial Enterprises is that it is growing profits. It's not easy for business to grow EPS, but Nahar Industrial Enterprises has shown the strengths to do just that. The eye-catcher here is the reecnt insider share acquisitions which are undoubtedly enough to entice some investors to keep watch for the future. Even so, be aware that Nahar Industrial Enterprises is showing 1 warning sign in our investment analysis , you should know about...

Keen growth investors love to see insider buying. Thankfully, Nahar Industrial Enterprises isn't the only one. You can see a a free list of them here.

Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.