Nahar Poly (NAHARPOLY)

FairStock Score: 26/100 — RISKY

Score breakdown: P/E: 3/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

When I examine Nahar Poly, I try to look beyond the headline numbers. The company trades at a P/E of 8.36, with a market cap of ₹606 Cr, and has a P/B of 1.30 against a book value of ₹202.53. On the surface, that appears reasonably cheap, and the low debt-to-equity of 0.11 gives me comfort that the business is not leveraged to the hilt. Promoter holding of 72.28% aligns interests with minority shareholders, and the Piotroski F-Score of 6 suggests decent fundamental signals. However, I must be honest: this is not a wonderful business. Return on capital employed is just 6.46%, while ROE is 11.91%. The gap between the two, with minimal debt, tells me the reported profits may be driven by non-operating items or a low tax base. Sales have declined by 3.17%, yet profit jumped 157.39%. That extraordinary profit growth is likely from a low base or margin tailwinds, not durable top-line strength. In the latest quarter, Nahar Poly earned ₹19 Cr on sales of ₹167 Cr, a margin near 11%, but I would want to see if that can persist. The dividend yield is only 0.41%, so the patient investor receives little while waiting. With a PEG of 0.05, the market is pricing in explosive growth—too good to be true given shrinking sales. In the Graham tradition, I demand a margin of safety. At 1.3 times book, with weak ROCE, I am not getting a substantial discount. The 52-week range of ₹200 to ₹338 shows volatility. I would need to see sales stabilize and ROCE head higher before calling this a bargain. For now, it is a cyclical packaging play with a tempting earnings yield, but not a clear deep-value gem.

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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer