Sector Alpha

Track where the smart money flows in Indian equities

DashboardWeekly UpdateUploadPipelinePE CyclesBrainAbout

Data updated weekly. Not financial advice.

Sector Alpha
  1. Home
  2. /Momentum
  3. /Textiles - Hosiery/Knitwear
  4. /Nahar Spinning Mills Ltd
MomentumDeep Value

Nahar Spinning Mills Ltd: Why Is It Outperforming Nifty 500?

Active
RS +54.0%WeakRe-Entry

In Week of May 10, 2026, Nahar Spinning Mills Ltd (Textiles - Hosiery/Knitwear) is outperforming Nifty 500 with +54.0% relative strength. Fundamentals: Weak.

Nahar Spinning Mills Ltd Key Facts

PE Ratio
40.3x
Market Cap
₹900 Cr
PAT Growth YoY
-1400%
Revenue Growth YoY
-13%
OPM
2.0%
RS vs Nifty 500
+54.0%
PE: Mid ContractionRiding Wave

What's Happening

💪Debt reduced 31% YoY — balance sheet strengthening
💰Trading 86% above estimated fair value — significant premium

Earnings Acceleration Triggers

1. Value Added Product Mix Shift
FY27MEDIUM
2. Regulatory Approval Or License Win
Late 2026MEDIUM

Key Risks

1. Middle East conflict impacting logistics and energy costs for a company with 50%
HIGH
2. Narrowing spreads between raw cotton costs (60% of total costs) and finished yar
HIGH
3. Higher freight rates and insurance surcharges due to regional instability in tra
MEDIUM

Sector-Specific Signals

Export Dependency49.7%
Raw Cotton Cost Share60%
Power and Fuel ExpensesINR 228.61 Cr
Price-to-Book Ratio0.52

Key Numbers

PAT Growth YoY
-1400%
Inflection Down
Revenue YoY
-13%
Inflection Down
Operating Margin
2.0%
-300 bps YoY
PE Ratio
40.3
Current Price
₹249
Dividend Yield
0.40%
Fundamental Score
23/100
Weak
3Y PAT CAGR
-50%
Market Cap
993 Cr
Valuation
Significantly Overvalued

12-Week Performance

Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.

12 weeks agoThis week

Why Are Nahar Spinning Mills Ltd's Earnings Accelerating?

Based on Q3 FY26 (web) earnings • Updated Apr 19, 2026

Value Added Product Mix Shift

Expected: FY27MEDIUM confidence

What: Product diversification: Higher-count combed yarns

Regulatory Approval Or License Win

Expected: Late 2026MEDIUM confidence

What: FTA implementation: UK FTA late 2026

What Are the Key Risks for Nahar Spinning Mills Ltd?

Earnings deceleration risks from management commentary

Middle East conflict impacting logistics and energy costs for a company with 50%

HIGH

Trigger: Middle East conflict impacting logistics and energy costs for a company with 50% export dependency.

Management view: Monitoring supply chain stability and energy prices.

Monitor: geopolitical

Narrowing spreads between raw cotton costs (60% of total costs) and finished yar

HIGH

Trigger: Narrowing spreads between raw cotton costs (60% of total costs) and finished yarn realizations.

Impact: PAT impact: INR -12.92 Cr loss

Management view: Evaluating optimizations in energy mix and product diversification.

Monitor: commodity

Higher freight rates and insurance surcharges due to regional instability in tra

MEDIUM

Trigger: Higher freight rates and insurance surcharges due to regional instability in transit hubs.

Management view: Not Given

Monitor: logistics

What Did Nahar Spinning Mills Ltd Report This Quarter?

Headline numbers from the latest earnings call

Revenue

INR 702.56 Cr

YoY -13.5%QoQ -9.52%

Revenue declined due to sluggish off-take from key export destinations in the EU and US where high inventory levels dampened procurement.

EBITDA

INR -8.20 Cr

Margin -1.17%

Operating profit turned negative as the company was unable to pass on increased logistics and synthetic fiber costs to international buyers.

PAT

INR -12.92 Cr

YoY -1810.8%QoQ -178.45%

The company reported a substantial net loss compared to a profit in the previous year, reflecting intensified structural pressure in the spinning sector.

Other Highlights

• Nine-month net loss narrowed to INR 1.60 Cr from INR 10.06 Cr in the previous year.

• Total comprehensive loss for Q3 widened to INR 34.28 Cr due to other comprehensive losses.

• Interest expenses accounted for 2.26% of operating revenues in the trailing period.

What Sector Metrics Matter for Nahar Spinning Mills Ltd?

Sub-sector-specific signals from the latest concall — each with management's stated reason for the change

Export Dependency

49.7%

Why: High reliance on international markets makes the company vulnerable to global supply chain disruptions.

Raw Cotton Cost Share

60%

Why: Cotton is the primary raw material, and its price volatility directly impacts the cost structure.

Power and Fuel Expenses

INR 228.61 Cr

Why: Energy prices remain high due to regional conflicts, inflating operating expenses.

Price-to-Book Ratio

0.52

Why: The low valuation reflects market concerns over cyclical risks and current loss-making status.

Employee Cost Share

9.68%

Why: Fixed costs like labor remain a significant portion of the revenue base.

What Is Nahar Spinning Mills Ltd's Management Guidance?

Forward-looking targets from management for Q4 FY26

OPM Guidance

8%

Revenue Outlook

285 Cr

Margin Outlook

Analysts project EBITDA margin of 8% for Q4 FY26.

Management Tone: CAUTIOUS

How Fast Is Nahar Spinning Mills Ltd Growing?

Revenue, profit and margin growth rates

MetricYoY3Y CAGRTrend
Revenue-13%-3%Inflection Down
PAT (Net Profit)-1400%-50%Inflection Down
OPM2.0%-300 bpsStable

The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 19, 2026.

← Back to Textiles - Hosiery/KnitwearDashboard

Frequently Asked Questions: Nahar Spinning Mills Ltd

Based on publicly available financial data. This is educational research, not investment advice.

What were Nahar Spinning Mills Ltd's latest quarterly results?

Nahar Spinning Mills Ltd's latest quarterly results (Dec 2025) show

  • PAT Growth YoY: -1400.0% (inflecting downward)
  • Revenue Growth YoY: -13.4%
  • Operating Margin: 2.0% (stable)

Is Nahar Spinning Mills Ltd's profit growing or declining?

Nahar Spinning Mills Ltd's profit is declining with an inflecting downward trend.

  • PAT Growth YoY: -1400.0% (latest quarter)
  • PAT Growth QoQ: -160.0% (sequential)
  • 3-Year PAT CAGR: -50.0%
  • Trend: Inflecting downward — consistent growth pattern

What is Nahar Spinning Mills Ltd's revenue growth trend?

Nahar Spinning Mills Ltd's revenue growth trend is inflecting downward.

  • Revenue Growth YoY: -13.4%
  • Revenue Growth QoQ: -9.8% (sequential)
  • 3-Year Revenue CAGR: -3.0%

How is Nahar Spinning Mills Ltd's operating margin trending?

Nahar Spinning Mills Ltd's operating margin is stable.

  • Current OPM: 2.0%
  • OPM Change YoY: -3.0% basis points
  • OPM Change QoQ: -1.0% basis points

What is Nahar Spinning Mills Ltd's 3-year profit and revenue CAGR?

Nahar Spinning Mills Ltd's long-term compounding rates

  • 3-Year Profit CAGR: -50.0%
  • 3-Year Revenue CAGR: -3.0%

Is Nahar Spinning Mills Ltd's growth accelerating or decelerating?

Nahar Spinning Mills Ltd's earnings growth is inflecting downward with negative momentum on a sequential basis.

  • YoY Acceleration: -150.6% bps
  • Sequential Acceleration: 0.0% bps
  • Margin Warning: Operating margins are under pressure

What is Nahar Spinning Mills Ltd's trailing twelve month (TTM) performance?

Nahar Spinning Mills Ltd's trailing twelve month (TTM) performance

  • TTM PAT: ₹20 Cr
  • TTM PAT Growth: +100.0% YoY
  • TTM Revenue: ₹3,000 Cr
  • TTM Revenue Growth: -1.5% YoY
  • TTM Operating Margin: 5.2%

Is Nahar Spinning Mills Ltd overvalued or undervalued?

Nahar Spinning Mills Ltd appears significantly overvalued based on our fair value analysis.

  • Valuation Signal: Significantly Overvalued
  • Current PE: 40.3x
  • Price-to-Book: 0.6x

What is Nahar Spinning Mills Ltd's current PE ratio?

Nahar Spinning Mills Ltd's current PE ratio is 40.3x.

  • Current PE: 40.3x
  • Market Cap: 900 Cr
  • Dividend Yield: 0.40%

How does Nahar Spinning Mills Ltd's valuation compare to its history?

Nahar Spinning Mills Ltd's current PE is 40.3x.

  • Current PE: 40.3x
  • Valuation Assessment: Significantly Overvalued

What is Nahar Spinning Mills Ltd's price-to-book ratio?

Nahar Spinning Mills Ltd's price-to-book ratio is 0.6x.

  • Price-to-Book (P/B): 0.6x
  • Book Value per Share: ₹425
  • Current Price: ₹249

Is Nahar Spinning Mills Ltd a fundamentally strong company?

Nahar Spinning Mills Ltd is rated Weak with a fundamental score of 23/100. This score is calculated from objective financial metrics

  • Revenue Growth YoY: -13.4% (10% weight)
  • PAT Growth YoY: -1400.0% (10% weight)
  • PAT Growth QoQ: -160.0% (10% weight)
  • Margins stable (10% weight)

Is Nahar Spinning Mills Ltd debt free?

Nahar Spinning Mills Ltd has a debt-to-equity ratio of N/A.

  • Total Debt: ₹1,000 Cr

What is Nahar Spinning Mills Ltd's return on equity (ROE) and ROCE?

Nahar Spinning Mills Ltd's return ratios over recent years

  • FY2023: ROCE 7.0%
  • FY2024: ROCE 1.0%
  • FY2025: ROCE 4.0%

Is Nahar Spinning Mills Ltd's cash flow positive?

Nahar Spinning Mills Ltd's operating cash flow is positive (FY2025).

  • Cash from Operations (CFO): ₹93 Cr
  • Free Cash Flow (FCF): ₹107 Cr
  • CFO/PAT Ratio: 775% (strong cash conversion)

What is Nahar Spinning Mills Ltd's dividend yield?

Nahar Spinning Mills Ltd's current dividend yield is 0.40%.

  • Dividend Yield: 0.40%
  • Current Price: ₹249

Who holds Nahar Spinning Mills Ltd shares — promoters, FII, DII?

Nahar Spinning Mills Ltd's shareholding pattern (Mar 2026)

  • Promoters: 68.0%
  • FII (Foreign): 0.1%
  • DII (Domestic): 0.0%
  • Public: 31.9%

Is promoter holding increasing or decreasing in Nahar Spinning Mills Ltd?

Nahar Spinning Mills Ltd's promoter holding has increased recently.

  • Current Promoter Holding: 68.0% (Mar 2026)
  • Previous Quarter: 67.4% (Dec 2025)
  • Change: +0.54% (increasing — positive signal)

How long has Nahar Spinning Mills Ltd been outperforming Nifty 500?

Nahar Spinning Mills Ltd has been outperforming Nifty 500 for 1 consecutive week, indicating early-stage outperformance.

Is Nahar Spinning Mills Ltd a new momentum entry or an established outperformer?

Nahar Spinning Mills Ltd is a re-entry — it briefly dropped off the outperformance list but has now returned. Re-entries can signal renewed strength.

What are the growth catalysts for Nahar Spinning Mills Ltd?

Nahar Spinning Mills Ltd has 2 key growth catalysts identified from recent earnings analysis

  • Value Added Product Mix Shift — Shift to value-added yarns can improve margins but takes time to scale.
  • Regulatory Approval Or License Win — FTAs would reduce export duties and improve competitiveness in key markets.

What are the key risks in Nahar Spinning Mills Ltd?

Nahar Spinning Mills Ltd has 3 key risks worth monitoring

  • [HIGH] Middle East conflict impacting logistics and energy costs for a company with 50% — Middle East conflict impacting logistics and energy costs for a company with 50% export dependency.
  • [HIGH] Narrowing spreads between raw cotton costs (60% of total costs) and finished yar — Narrowing spreads between raw cotton costs (60% of total costs) and finished yarn realizations.
  • [MEDIUM] Higher freight rates and insurance surcharges due to regional instability in tra — Higher freight rates and insurance surcharges due to regional instability in transit hubs.

What is Nahar Spinning Mills Ltd's management guidance for growth?

Nahar Spinning Mills Ltd's management has provided the following forward guidance for Q4 FY26

  • Revenue outlook: 285 Cr
  • OPM guidance: 8%
  • Capex plan: Not Given for Modernizing spinning infrastructure and evaluating energy mix optimizations.
  • Management tone: cautious

What sector-specific metrics matter most for Nahar Spinning Mills Ltd?

Nahar Spinning Mills Ltd's most important sub-sector-specific KPIs from the latest concall

  • Export Dependency: 49.7% — High reliance on international markets makes the company vulnerable to global supply chain disruptions.
  • Raw Cotton Cost Share: 60% — Cotton is the primary raw material, and its price volatility directly impacts the cost structure.
  • Power and Fuel Expenses: INR 228.61 Cr — Energy prices remain high due to regional conflicts, inflating operating expenses.
  • Price-to-Book Ratio: 0.52 — The low valuation reflects market concerns over cyclical risks and current loss-making status.
  • Employee Cost Share: 9.68% — Fixed costs like labor remain a significant portion of the revenue base.

Is Nahar Spinning Mills Ltd worth studying for long term investment?

Based on quantitative research signals, here is why Nahar Spinning Mills Ltd may be worth studying

  • Cash flow is positive — CFO ₹93 Cr

What is the investment thesis for Nahar Spinning Mills Ltd?

Nahar Spinning Mills Ltd investment thesis summary:

Research Signals (Bull Case)

  • Growth catalyst: Value Added Product Mix Shift

Risk Factors (Bear Case)

  • Margins under pressure
  • Appears significantly overvalued
  • Key risk: Middle East conflict impacting logistics and energy costs for a company with 50%

What is the future outlook for Nahar Spinning Mills Ltd?

Nahar Spinning Mills Ltd's forward outlook based on current data signals

  • Earnings Trend: inflecting downward
  • Revenue Trend: inflecting downward
  • Margin Trend: stable
  • Valuation: Significantly Overvalued
  • Key Catalyst: Value Added Product Mix Shift
  • Key Risk: Middle East conflict impacting logistics and energy costs for a company with 50%

The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.