NSEI:NAHARSPING

Stock Analysis Report

Executive Summary

Nahar Spinning Mills Ltd manufactures and sells yarns and knitted garments in India.


Snowflake Analysis

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: NAHARSPING's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.5%

NAHARSPING

-4.4%

IN Luxury

-3.5%

IN Market


1 Year Return

-54.9%

NAHARSPING

12.8%

IN Luxury

5.2%

IN Market

Return vs Industry: NAHARSPING underperformed the Indian Luxury industry which returned 12.8% over the past year.

Return vs Market: NAHARSPING underperformed the Indian Market which returned 5.2% over the past year.


Shareholder returns

NAHARSPINGIndustryMarket
7 Day-6.5%-4.4%-3.5%
30 Day-19.4%-1.4%-3.9%
90 Day-14.2%6.0%-2.1%
1 Year-54.0%-54.9%13.5%12.8%7.2%5.2%
3 Year-70.9%-72.0%45.8%44.0%18.9%12.4%
5 Year-60.2%-62.6%97.3%93.7%29.4%17.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Nahar Spinning Mills 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: NAHARSPING (₹37.2) is trading below our estimate of fair value (₹373.91)

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


Price To Earnings Ratio

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

PE vs Market: NAHARSPING 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 NAHARSPING's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NAHARSPING 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 Spinning Mills forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.7%

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 Spinning Mills 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 Spinning Mills performed over the past 5 years?

-19.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NAHARSPING is currently unprofitable.

Growing Profit Margin: NAHARSPING is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NAHARSPING is unprofitable, and losses have increased over the past 5 years at a rate of -19.1% per year.

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

Earnings vs Industry: NAHARSPING is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (6.4%).


Return on Equity

High ROE: NAHARSPING has a negative Return on Equity (-4.19%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Nahar Spinning Mills's financial position?


Financial Position Analysis

Short Term Liabilities: NAHARSPING's short term assets (₹7.4B) exceed its short term liabilities (₹6.2B).

Long Term Liabilities: NAHARSPING's short term assets (₹7.4B) exceed its long term liabilities (₹1.2B).


Debt to Equity History and Analysis

Debt Level: NAHARSPING's debt to equity ratio (70.7%) is considered high.

Reducing Debt: NAHARSPING's debt to equity ratio has reduced from 107.5% to 70.7% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: NAHARSPING's debt is covered by short term assets (assets are 1.2x 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: NAHARSPING has been profitable on average in the past, therefore cash runway is not a concern.

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


Next Steps

Dividend

What is Nahar Spinning Mills's current dividend yield, its reliability and sustainability?

2.70%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%0.6%markettop25%2.7%industryaverage0.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: NAHARSPING's dividend (2.7%) is higher than the bottom 25% of dividend payers in the Indian market (0.61%).

High Dividend: NAHARSPING's dividend (2.7%) is in the top 25% of dividend payers in the Indian market (2.67%)


Stability and Growth of Payments

Stable Dividend: NAHARSPING's dividend payments have been volatile in the past 10 years.

Growing Dividend: NAHARSPING's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: NAHARSPING is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

10.1yrs

Average board tenure


CEO

T. Mohan (72yo)

0

Sh. T. Chandar Mohan serves as Chief Executive of Nahar Spinning Mills Ltd. 


Board Members

NamePositionTenureCompensationOwnership
Dinesh Oswal
MD & Executive Director0yrs₹63.39m0.066% 880.6k
Suresh Singla
Independent Director11.7yrs₹30.00k0.000060% 801.7
Kamal Oswal
Non-Executive Director0yrs₹50.00k0.15% 1.9m
Kanwar Maini
Independent Director17.6yrs₹40.00k0.000060% 801.7
Dinesh Gogna
Non-Executive Director0yrs₹50.00kno data
Jawahar Oswal
Non-Executive Chairman0yrs₹50.00k0.0028% 37.0k
Satish Sharma
Non-Executive Director13.1yrs₹40.00kno data
Amrik Sohi
Independent Director8.5yrs₹40.00kno data
Vijay Asdhir
Independent Director2.4yrs₹50.00kno data
Manisha Gupta
Independent Women Director2.4yrs₹50.00kno data

10.1yrs

Average Tenure

67.5yo

Average Age

Experienced Board: NAHARSPING's board of directors are seasoned and experienced ( 10.1 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Nahar Spinning Mills Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nahar Spinning Mills Ltd
  • Ticker: NAHARSPING
  • Exchange: NSEI
  • Founded: 1980
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹1.336b
  • Shares outstanding: 36.07m
  • Website: https://www.owmnahar.com/spinning/about.php

Number of Employees


Location

  • Nahar Spinning Mills Ltd
  • Nahar Tower
  • Industrial Area-A
  • Ludhiana
  • Punjab
  • 141003
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500296BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 2001
NAHARSPINGNSEI (National Stock Exchange of India)YesEquity SharesININRJul 2001

Biography

Nahar Spinning Mills Ltd manufactures and sells yarns and knitted garments in India. The company offers raw white combed, raw white carded/open end, dyed, organic cotton, fair trade cotton, better cotton initiative, melange, gassed/mercerized, compact spun, blended, synthetic/man-made fiber, and cleaner yarns, as well as grindle, space dyed, slub, core spun, high twist, reverse twist, and elitwist yarns. It also provides woolen/cotton hosiery knit-wears and woolen textiles; and T-shirts. The company also exports its products primarily to the United States, the United Kingdom, France, Brazil, Bangladesh, Mauritius, Honduras, Argentina, Colombia, Peru, Chile, the Netherlands, Japan, Canada, Korea, Taiwan, Hong Kong, Singapore, Egypt, and Russia. Nahar Spinning Mills Ltd was incorporated in 1980 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 Analysis2020/02/27 12:55
End of Day Share Price2020/02/27 00:00
Earnings2019/12/31
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.