Fundamental Analysis of Nahar Capital & Financial Services Ltd

Share Price and Basic Stock Data

Last Updated: September 6, 2024, 11:26 pm

Market Cap	553 Cr.
Current Price	331
High / Low	375/264
Stock P/E	21.6
Book Value	921
Dividend Yield	0.45 %
ROCE	0.98 %
ROE	0.77 %
Face Value	5.00
PEG Ratio	0.57

Data Source: screener.in

Stock P/E, Current Price, and Intrinsic Value Over Time

Stock P/E Current Price Intrinsic Value

Competitors of Nahar Capital & Financial Services Ltd

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
Gujarat Credit Corporation Ltd	55.2 Cr.	22.1	37.4/18.2		5.55	0.00 %	0.06 %	0.79 %	10.0
Greencrest Financial Services Ltd	34.4 Cr.	0.94	1.32/0.59	11.7	1.47	0.00 %	4.27 %	1.99 %	1.00
Golechha Global Finance Ltd	19.9 Cr.	36.2	39.2/13.3	11.7	15.8	2.77 %	23.0 %	18.7 %	10.0
Goldline International Finvest Ltd	31.8 Cr.	0.61	1.28/0.47	289	1.03	0.00 %	0.13 %	0.13 %	1.00
Gogia Capital Services Ltd	47.2 Cr.	74.7	161/0.00		40.2	0.00 %	47.9 %	61.8 %	10.0
Industry Average	4,464.47	N/A		49.95	N/A	N/A	16.08	26.45	N/A

Nahar Capital & Financial Services Ltd Quarterly Results

Month	Dec 2020	Mar 2021	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023
Sales	4.56	5.50	4.62	10.21	10.91	4.29	5.31	8.70	6.21	5.32	5.87	7.82	3.93
Expenses	1.43	2.02	2.44	1.44	1.81	2.11	1.87	1.70	7.33	2.52	12.63	6.74	13.31
Operating Profit	3.13	3.48	2.18	8.77	9.10	2.18	3.44	7.00	-1.12	2.80	-6.76	1.08	-9.38
OPM %	68.64%	63.27%	47.19%	85.90%	83.41%	50.82%	64.78%	80.46%	-18.04%	52.63%	-115.16%	13.81%	-238.68%
Other Income	25.03	39.56	58.93	76.55	85.47	63.46	40.00	26.51	6.31	9.47	7.56	5.19	10.21
Interest	0.03	0.07	0.04	0.01	0.04	0.00	0.07	0.04	0.01	0.01	0.00	0.09	0.03
Depreciation	0.20	0.24	0.26	0.26	0.26	0.25	0.26	0.26	0.26	0.25	0.26	0.26	0.26
Profit before tax	27.93	42.73	60.81	85.05	94.27	65.39	43.11	33.21	4.92	12.01	0.54	5.92	0.54
Tax %	14.75%	13.46%	4.11%	34.23%	24.82%	36.78%	-23.10%	0.51%	-0.61%	-30.47%	500.00%	12.16%	125.93%
Net Profit	23.81	36.99	58.32	55.94	70.87	41.33	53.07	33.03	4.95	15.66	-2.16	5.20	-0.15
EPS in Rs	14.22	22.09	34.83	33.40	42.32	24.68	31.69	19.72	2.96	9.35	-1.29	3.11	-0.09

Last Updated: July 12, 2024, 11:09 am

Quarterly Chart

Nahar Capital & Financial Services Ltd Profit & Loss

Last Updated: July 10, 2024, 8:02 pm

Month	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	TTM
Sales	24	18	30	27	24	18	46	42	33	23
Expenses	2	6	3	9	9	14	5	8	8	35
Operating Profit	21	12	27	18	15	4	40	34	25	-12
OPM %	90%	69%	90%	68%	61%	25%	88%	81%	76%	-53%
Other Income	0	0	0	0	17	0	45	273	69	32
Interest	0	0	0	0	0	1	0	0	0	0
Depreciation	0	0	0	0	0	1	1	1	1	1
Profit before tax	22	12	27	18	31	4	84	306	93	19
Tax %	19%	16%	18%	-6%	19%	-3%	27%	26%	-14%
Net Profit	19	40	63	19	25	4	61	226	107	19
EPS in Rs	11.23	23.87	37.58	11.21	14.92	2.21	36.41	135.23	63.73	11.08
Dividend Payout %	13%	6%	4%	13%	10%	23%	4%	2%	2%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2015-2016	2016-2017	2017-2018	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023
YoY Net Profit Growth (%)	110.53%	57.50%	-69.84%	31.58%	-84.00%	1425.00%	270.49%	-52.65%
Change in YoY Net Profit Growth (%)	0.00%	-53.03%	-127.34%	101.42%	-115.58%	1509.00%	-1154.51%	-323.15%

Growth

Compounded Sales Growth
10 Years:	%
5 Years:	17%
3 Years:	4%
TTM:	-6%

Compounded Profit Growth
10 Years:	%
5 Years:	-14%
3 Years:	-42%
TTM:	-50%

Stock Price CAGR
10 Years:	18%
5 Years:	41%
3 Years:	10%
1 Year:	24%

Return on Equity
10 Years:	%
5 Years:	7%
3 Years:	8%
Last Year:	1%

Last Updated: August 31, 2024, 5:42 pm

Nahar Capital & Financial Services Ltd Balance Sheet

Last Updated: July 10, 2024, 8:02 pm

Month	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Sep 2023
Equity Capital	8	8	8	8	8	8	8	8	8	8
Reserves	577	613	675	994	997	783	1,035	1,551	1,520	1,540
Borrowings	0	15	15	24	5	4	6	2	0	1
Other Liabilities	9	7	8	71	74	72	106	173	152	159
Total Liabilities	593	643	707	1,098	1,085	867	1,156	1,733	1,681	1,708
Fixed Assets	8	7	17	20	38	41	56	55	54	54
CWIP	24	25	18	0	11	16	0	1	0	0
Investments	542	589	634	1,035	1,000	739	1,014	1,652	1,617	1,645
Other Assets	20	22	37	43	37	72	86	26	9	9
Total Assets	593	643	707	1,098	1,085	867	1,156	1,733	1,681	1,708

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity	8	4	-8	-23	29	138	-55	-69	-23	-11
Cash from Investing Activity	-17	-1	12	27	-25	-134	56	75	26	12
Cash from Financing Activity	8	-3	-3	-3	-3	-4	-1	-5	-3	-3
Net Cash Flow	-0	-0	1	-0	0	-0	1	1	-0	-1

Free Cash Flow

Month	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Free Cash Flow	21.00	-3.00	12.00	-6.00	10.00	0.00	34.00	32.00	25.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

Month	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	0	0	0	0	0	0	0	0	0	0
Inventory Days
Days Payable
Cash Conversion Cycle	0	0	0	0	0	0	0	0	0	0
Working Capital Days	162	301	328	2	382	545	191	116	37	11
ROCE %		2%	4%	2%	3%	0%	9%	23%	6%	1%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Promoters	71.24%	71.42%	71.47%	71.54%	71.55%	71.55%	71.55%	71.55%	71.55%	71.55%	71.55%	71.65%
FIIs	0.11%	0.15%	0.38%	0.49%	0.48%	0.46%	0.32%	0.31%	0.31%	0.31%	0.31%	0.34%
DIIs	0.02%	0.02%	0.02%	0.02%	0.02%	0.02%	0.02%	0.02%	0.02%	0.02%	0.02%	0.02%
Public	28.63%	28.41%	28.13%	27.95%	27.95%	27.97%	28.13%	28.12%	28.13%	28.12%	28.12%	27.98%
No. of Shareholders	13,643	12,306	13,736	14,631	14,787	14,349	14,163	13,966	13,881	13,444	13,711	13,023

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	5.00	5.00	5.00	5.00	5.00
Basic EPS (Rs.)	7.03	63.73	135.23	36.41	2.21
Diluted EPS (Rs.)	7.03	63.73	135.23	36.41	2.21
Cash EPS (Rs.)	23.88	23.38	-26.15	10.74	7.06
Book Value[Excl.RevalReserv]/Share (Rs.)	920.71	912.70	931.13	623.08	472.35
Book Value[Incl.RevalReserv]/Share (Rs.)	920.71	912.70	931.13	623.08	472.35
Revenue From Operations / Share (Rs.)	14.26	15.25	17.93	13.05	6.11
PBDIT / Share (Rs.)	25.87	15.41	21.12	24.42	7.30
PBIT / Share (Rs.)	25.25	14.80	20.50	23.92	6.86
PBT / Share (Rs.)	25.16	14.72	20.45	23.82	6.55
Net Profit / Share (Rs.)	23.26	22.76	-26.76	10.25	6.62
NP After MI And SOA / Share (Rs.)	7.03	63.73	135.23	36.41	2.21
PBDIT Margin (%)	181.42	101.06	117.75	187.06	119.36
PBIT Margin (%)	177.08	97.01	114.34	183.25	112.19
PBT Margin (%)	176.48	96.49	114.04	182.46	107.15
Net Profit Margin (%)	163.11	149.26	-149.23	78.48	108.31
NP After MI And SOA Margin (%)	49.27	417.87	754.15	278.91	36.10
Return on Networth / Equity (%)	0.76	6.98	14.52	5.84	0.46
Return on Capital Employeed (%)	2.49	1.47	1.98	3.51	1.34
Return On Assets (%)	0.69	6.34	13.06	5.27	0.42
Total Debt / Equity (X)	0.00	0.00	0.00	0.01	0.01
Asset Turnover Ratio (%)	0.01	0.01	0.03	0.02	0.01
Current Ratio (X)	201.65	454.70	255.63	75.43	61.32
Quick Ratio (X)	201.51	453.81	253.34	73.48	58.99
Dividend Payout Ratio (NP) (%)	0.00	2.35	2.21	1.37	67.97
Dividend Payout Ratio (CP) (%)	0.00	2.33	2.20	1.35	56.71
Earning Retention Ratio (%)	0.00	97.65	97.79	98.63	32.03
Cash Earning Retention Ratio (%)	0.00	97.67	97.80	98.65	43.29
Interest Coverage Ratio (X)	305.92	194.49	389.88	235.02	23.70
Interest Coverage Ratio (Post Tax) (X)	276.05	288.25	-493.08	99.61	22.50
Enterprise Value (Cr.)	468.92	410.84	986.43	174.88	68.52
EV / Net Operating Revenue (X)	19.64	16.09	32.85	8.00	6.69
EV / EBITDA (X)	10.82	15.92	27.89	4.28	5.61
MarketCap / Net Operating Revenue (X)	19.49	16.16	33.03	8.09	7.13
Retention Ratios (%)	0.00	97.64	97.78	98.62	32.02
Price / BV (X)	0.30	0.27	0.63	0.16	0.09
Price / Net Operating Revenue (X)	19.49	16.16	33.03	8.09	7.13
EarningsYield	0.02	0.25	0.22	0.34	0.05

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: ₹153.87

Calculation basis:

Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Overvalued: 53.51% compared to the current price ₹331.00

Intrinsic Value: 212.41

Calculation basis:

Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

Overvalued: 35.83% compared to the current price ₹331.00

Last 5 Year EPS CAGR: 38.05%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The stock has a low average Cash Conversion Cycle of 0.00, which is a positive sign. The company has higher reserves (962.40 cr) compared to borrowings (7.50 cr), indicating strong financial stability. The company has shown consistent growth in sales (28.50 cr) and profit (61.60 cr) over the years.	The stock has a low average ROCE of 5.00%, which may not be favorable. The stock has a high average Working Capital Days of 207.50, which may not be favorable.

Stock Analysis

Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Nahar Capital & Financial Services Ltd:
1. Net Profit Margin: 163.11%
  - Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
2. ROCE: 2.49% (Industry Average ROCE: 16.08%)
  - ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
3. ROE%: 0.76% (Industry Average ROE: 26.45%)
  - ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
4. Interest Coverage Ratio (Post Tax): 276.05
  - Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
5. Quick Ratio: 201.51
  - Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
6. Stock P/E: 21.6 (Industry average Stock P/E: 49.95)
  - Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
7. Total Debt / Equity: 0
  - Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
Stock Rating:

About the Company - Qualitative Analysis

Nahar Capital & Financial Services Ltd. is a Public Limited Listed company incorporated on 31/03/2006 and has its registered office in the State of Punjab, India. Company’s Corporate Identification Number(CIN) is L45202PB2006PLC029968 and registration number is 029968. Currently Company is involved in the business activities of Trusts, funds and other financial vehicles. Company’s Total Operating Revenue is Rs. 36.75 Cr. and Equity Capital is Rs. 8.37 Cr. for the Year ended 31/03/2022.

INDUSTRY	ADDRESS	CONTACT
Finance & Investments	NAHAR TOWER, 375, Industrial Area - A, Ludhiana Punjab 141003	secncfs@owmnahar.com http://www.owmnahar.com

Management
Name	Position Held
Mr. Jawahar Lal Oswal	Chairman
Mr. Dinesh Oswal	Managing Director
Mr. Kamal Oswal	Director
Mr. Dinesh Gogna	Director
Mr. Satish Kumar Sharma	Director
Dr. Manisha Gupta	Independent Director
Dr. Vijay Asdhir	Independent Director
Dr. Yash Paul Sachdeva	Independent Director
Dr. Rajan Dhir	Independent Director
Dr. Roshan Lal Behl	Independent Director

FAQ

What is the latest fair value of Nahar Capital & Financial Services Ltd?

The latest fair value of Nahar Capital & Financial Services Ltd is ₹153.87.

What is the Market Cap of Nahar Capital & Financial Services Ltd?

The Market Cap of Nahar Capital & Financial Services Ltd is 553 Cr..

What is the current Stock Price of Nahar Capital & Financial Services Ltd as on 07 September 2024?

The current stock price of Nahar Capital & Financial Services Ltd as on 07 September 2024 is 331.

What is the High / Low of Nahar Capital & Financial Services Ltd stocks in FY 2024?

In FY 2024, the High / Low of Nahar Capital & Financial Services Ltd stocks is 375/264.

What is the Stock P/E of Nahar Capital & Financial Services Ltd?

The Stock P/E of Nahar Capital & Financial Services Ltd is 21.6.

What is the Book Value of Nahar Capital & Financial Services Ltd?

The Book Value of Nahar Capital & Financial Services Ltd is 921.

What is the Dividend Yield of Nahar Capital & Financial Services Ltd?

The Dividend Yield of Nahar Capital & Financial Services Ltd is 0.45 %.

What is the ROCE of Nahar Capital & Financial Services Ltd?

The ROCE of Nahar Capital & Financial Services Ltd is 0.98 %.

What is the ROE of Nahar Capital & Financial Services Ltd?

The ROE of Nahar Capital & Financial Services Ltd is 0.77 %.

What is the Face Value of Nahar Capital & Financial Services Ltd?

The Face Value of Nahar Capital & Financial Services Ltd is 5.00.