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Last Updated on: 24 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Nahar Spinning Mills Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 9:51 pm

Market Cap 857 Cr.
Current Price 238
High / Low384/225
Stock P/E
Book Value 413
Dividend Yield0.42 %
ROCE0.95 %
ROE2.41 %
Face Value 5.00
PEG Ratio0.00

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

View Share Price Target for Nahar Spinning Mills Ltd

Competitors of Nahar Spinning Mills Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Filatex Fashions Ltd 758 Cr. 0.924.30/0.7983.1 2.770.00 %1.07 %0.73 % 1.00
Alan Scott Industries Ltd 59.3 Cr. 163163/57.0 5.640.00 %26.4 %139 % 10.0
Addi Industries Ltd 43.3 Cr. 40.170.7/37.69.36 73.23.11 %8.38 %6.17 % 5.00
T T Ltd (TTL) 344 Cr. 160174/94.01,913 36.80.00 %7.93 %6.77 % 10.0
Rupa & Company Ltd 1,925 Cr. 242362/22725.1 1241.24 %10.1 %7.76 % 1.00
Industry Average1,001.29 Cr140.05292.5786.730.57%8.44%18.45%5.50

All Competitor Stocks of Nahar Spinning Mills Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales6357277388431,017996862657554724749728758
Expenses571604568630775817750595551690738715739
Operating Profit6412317021324217911261434111318
OPM %10%17%23%25%24%18%13%9%1%5%1%2%2%
Other Income221462111668231
Interest1516181417199768151316
Depreciation21202020181717171820202123
Profit before tax31881341822131469753-1415-23-18-20
Tax %34%28%25%25%26%26%26%25%23%33%24%1%24%
Net Profit20631001371581077240-1110-18-18-15
EPS in Rs5.6017.5727.8037.8343.7829.7020.0111.01-3.052.71-4.85-4.99-4.21

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,6951,9602,2032,1492,0292,1322,1332,3052,0832,1123,5942,7972,958
Expenses1,6791,6381,8461,9291,8041,9442,0402,0702,0191,9142,7832,5812,882
Operating Profit16322357220225188942366419881121676
OPM %1%16%16%10%11%9%4%10%3%9%23%8%3%
Other Income98712182291267144014
Interest1141097186634755606769753353
Depreciation8488881311019694848282757384
Profit before tax-173134204157968-46104-7854675150-47
Tax %32%42%29%-37%36%32%30%37%32%23%26%26%
Net Profit-11778146205146-3265-5341502111-41
EPS in Rs-32.5121.7140.375.6414.0912.73-8.9118.04-14.7011.47139.1130.69-11.34
Dividend Payout %0%5%2%18%11%12%-6%6%0%13%3%5%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)166.67%87.18%-86.30%155.00%-9.80%-169.57%303.12%-181.54%177.36%1124.39%-77.89%
Change in YoY Net Profit Growth (%)0.00%-79.49%-173.48%241.30%-164.80%-159.76%472.69%-484.66%358.90%947.03%-1202.28%

Nahar Spinning Mills Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:3%
5 Years:6%
3 Years:13%
TTM:15%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:%
TTM:32%
Stock Price CAGR
10 Years:9%
5 Years:40%
3 Years:-24%
1 Year:-24%
Return on Equity
10 Years:7%
5 Years:9%
3 Years:13%
Last Year:-2%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 8:00 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital18181818181818181818181818
Reserves6047457427938388008598018801,5831,5361,4631,474
Borrowings1,2271,1591,0781,0157389968879241,0741,0137301,151735
Other Liabilities166252165144161170145162230338230257162
Total Liabilities2,0152,1742,0031,9701,7561,9851,9081,9062,2022,9512,5142,8892,388
Fixed Assets802900867813770709747756724752838918894
CWIP3861201361372821101310
Investments12189272825222261306163134166
Other Assets1,1631,1951,1061,1299551,2451,1261,1211,3891,8721,4121,8351,318
Total Assets2,0152,1742,0031,9701,7561,9851,9081,9062,2022,9512,5142,8892,388

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +134209134163382-24025061-85261609-395
Cash from Investing Activity +-45-211-89-58-61-19-128-78-53-161-257-49
Cash from Financing Activity +-88-3-44-121-120-122-12320136-99-303393
Net Cash Flow1-51-17201-382-13-3249-51

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow16.00321.00356.00219.00224.00-550.00-902.00-651.00-860.00197.00810.00-514.00

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

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days696865655259494853534151
Inventory Days224180163205140195164175207198155194
Days Payable111691114187794195
Cash Conversion Cycle282232219258178236205215251247177240
Working Capital Days168143141158108161141156198151139181
ROCE %13%15%5%8%7%0%9%-1%7%33%7%1%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters66.31%66.31%66.31%66.31%66.31%66.31%66.44%66.44%66.61%66.71%67.03%67.07%
FIIs0.30%0.49%0.56%0.73%0.44%0.38%0.35%0.27%0.25%0.22%0.14%0.11%
DIIs0.56%0.56%0.56%0.56%0.56%0.56%0.56%0.56%0.56%0.59%0.59%0.59%
Government0.01%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public32.82%32.64%32.57%32.40%32.69%32.75%32.63%32.72%32.58%32.48%32.24%32.24%
No. of Shareholders26,74526,88928,27831,00232,73532,70532,41732,15531,73031,41631,83930,813

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Quant Small Cap Fund206,5660.066.36206,5662024-11-230%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)-13.8432.24139.5011.33-14.41
Diluted EPS (Rs.)-13.8432.24139.5011.33-14.41
Cash EPS (Rs.)10.3650.78159.9834.197.92
Book Value[Excl.RevalReserv]/Share (Rs.)410.23430.37443.29248.69226.87
Book Value[Incl.RevalReserv]/Share (Rs.)410.23430.37443.29248.69226.87
Dividend / Share (Rs.)1.001.503.501.500.00
Revenue From Operations / Share (Rs.)844.73774.63995.36584.90576.83
PBDIT / Share (Rs.)27.4571.21226.8255.6218.57
PBIT / Share (Rs.)2.9451.12205.9232.90-4.04
PBT / Share (Rs.)-17.0041.64186.8714.83-21.62
Net Profit / Share (Rs.)-14.1530.68139.0911.47-14.70
PBDIT Margin (%)3.249.1922.789.503.21
PBIT Margin (%)0.346.5920.685.62-0.69
PBT Margin (%)-2.015.3718.772.53-3.74
Net Profit Margin (%)-1.673.9613.971.96-2.54
Return on Networth / Equity (%)-3.447.1231.374.61-6.47
Return on Capital Employeed (%)0.6110.1840.9710.68-1.46
Return On Assets (%)-1.764.4017.011.88-2.78
Long Term Debt / Equity (X)0.140.140.090.210.20
Total Debt / Equity (X)0.770.460.631.171.10
Asset Turnover Ratio (%)1.131.021.391.031.09
Current Ratio (X)1.501.891.561.241.18
Quick Ratio (X)0.540.750.630.560.46
Inventory Turnover Ratio (X)2.241.982.391.902.05
Dividend Payout Ratio (NP) (%)-10.586.512.150.000.00
Dividend Payout Ratio (CP) (%)14.463.931.870.000.00
Earning Retention Ratio (%)110.5893.4997.850.000.00
Cash Earning Retention Ratio (%)85.5496.0798.130.000.00
Interest Coverage Ratio (X)1.508.6012.003.081.07
Interest Coverage Ratio (Post Tax) (X)0.314.858.371.630.16
Enterprise Value (Cr.)2112.791544.832851.441421.35986.73
EV / Net Operating Revenue (X)0.690.550.790.670.47
EV / EBITDA (X)21.326.013.487.0814.71
MarketCap / Net Operating Revenue (X)0.310.310.510.170.04
Retention Ratios (%)110.5893.4897.840.000.00
Price / BV (X)0.650.551.150.410.11
Price / Net Operating Revenue (X)0.310.310.510.170.04
EarningsYield-0.050.120.270.11-0.56

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Nahar Spinning Mills Ltd as of November 24, 2024 is: 149.93

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.

As of November 24, 2024, Nahar Spinning Mills Ltd is Overvalued by 37.00% compared to the current share price 238.00

Default values used*: Default value of 15 for Stock P/E is used

Intrinsic Value of Nahar Spinning Mills Ltd as of November 24, 2024 is: 201.27

Calculation basis:

  • Intrinsic 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.

As of November 24, 2024, Nahar Spinning Mills Ltd is Overvalued by 15.43% compared to the current share price 238.00

Default values used*: Default value of 15 for Stock P/E is used

Last 5 Year EPS CAGR: 34.24%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (1,009.08 cr) compared to borrowings (979.00 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (1.92 cr) and profit (87.62 cr) over the years.
  1. The stock has a low average ROCE of 8.67%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 153.75, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 228.33, 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 Spinning Mills Ltd:
    1. Net Profit Margin: -1.67%
      • 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: 0.61% (Industry Average ROCE: 8.44%)
      • 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%: -3.44% (Industry Average ROE: 18.45%)
      • 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): 0.31
      • 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: 0.54
      • 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: 0 (Industry average Stock P/E: 292.57)
      • 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: 0.77
      • 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 Spinning Mills Ltd. is a Public Limited Listed company incorporated on 16/12/1980 and has its registered office in the State of Punjab, India. Company’s Corporate Identification Number(CIN) is L17115PB1980PLC004341 and registration number is 004341. Currently company belongs to the Industry of Textiles - Hosiery/Knitwear. Company’s Total Operating Revenue is Rs. 3593.86 Cr. and Equity Capital is Rs. 18.05 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Textiles - Hosiery/Knitwear373, Industrial Area A, Ludhiana Punjab 141003secnsm@owmnahar.com
http://www.owmnahar.com
Management
NamePosition Held
Mr. Jawahar Lal OswalChairman
Mr. Dinesh OswalManaging Director
Mr. Dinesh GognaDirector
Mr. Satish Kumar SharmaDirector
Mr. Kamal OswalDirector
Dr. Roshan Lal BehlIndependent Director
Dr. Manisha GuptaIndependent Director
Dr. Vijay AsdhirIndependent Director
Dr. Yash Paul SachdevaIndependent Director
Dr. Anchal Kumar JainIndependent Director

FAQ

What is the latest intrinsic value of Nahar Spinning Mills Ltd?

The latest intrinsic value of Nahar Spinning Mills Ltd as on 24 November 2024 is ₹149.93, which is 37.00% lower than the current market price of ₹238.00.

What is the Market Cap of Nahar Spinning Mills Ltd?

The Market Cap of Nahar Spinning Mills Ltd is 857 Cr..

What is the current Stock Price of Nahar Spinning Mills Ltd as on 24 November 2024?

The current stock price of Nahar Spinning Mills Ltd as on 24 November 2024 is 238.

What is the High / Low of Nahar Spinning Mills Ltd stocks in FY 2024?

In FY 2024, the High / Low of Nahar Spinning Mills Ltd stocks is 384/225.

What is the Stock P/E of Nahar Spinning Mills Ltd?

The Stock P/E of Nahar Spinning Mills Ltd is .

What is the Book Value of Nahar Spinning Mills Ltd?

The Book Value of Nahar Spinning Mills Ltd is 413.

What is the Dividend Yield of Nahar Spinning Mills Ltd?

The Dividend Yield of Nahar Spinning Mills Ltd is 0.42 %.

What is the ROCE of Nahar Spinning Mills Ltd?

The ROCE of Nahar Spinning Mills Ltd is 0.95 %.

What is the ROE of Nahar Spinning Mills Ltd?

The ROE of Nahar Spinning Mills Ltd is 2.41 %.

What is the Face Value of Nahar Spinning Mills Ltd?

The Face Value of Nahar Spinning Mills Ltd is 5.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Nahar Spinning Mills Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE