Nahar Poly Films Limited

Consumer Cyclical — Packaging & Containers · NSE

₹220.90+₹1.06 (+0.48%)

DalalBaazaar Score

64 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Reasonable but unspectacular business quality, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of Nahar Poly Films Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Nahar Poly Films Limited manufactures and sells biaxially oriented polypropylene (BOPP) films used in flexible packaging in India and internationally.

IndustryPackaging & Containers

SectorConsumer Cyclical

Employees317

Annual revenue₹702 Cr

How does it make money?

Turns over ₹702 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹18 left at the operating level before interest, tax and depreciation. Each of its 317 employees supports ₹2.21 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin17.8%

Net margin11.2%

Revenue / employee₹2.21 Cr

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

TRENT LTDP/E 87.2x · ROE 25.9%

AVENUE SUPERMARTS LIMITEDP/E 69.9x · ROE 12.7%

What is its competitive advantage?Little sign of one

Returns on capital of 10.5% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE10.5%

ROE9.1%

Peer median ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -2% while net margin moved +87% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-2%

Margin effect+87%

DalalBaazaar Score

64/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.37 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

62/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

88/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

7.5x

3Y Median

13.8x

40 monthly readings · mean 41.8x · range 6.9x–154.5x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 46% below its 3y median of 13.8x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 89% below the peer median of 69.2x.

vs. its own history

Cheap

13.8x median over 40 months · -46%

vs. sector peers

Cheap

69.2x median of 4 peers · -89%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

7.5x

P/B

0.63x

EV/EBITDA

5.0x

PEG

0.34

Dividend Yield

0.68%

What's Good / What's Bad

🟢 What's Going Well7

Margins are improving
EBITDA margin is up from 11.9% to 17.8% over 3 years.
Debt is being paid down
Total debt is down 52% over 3 years.
Cash generation is improving
Free cash flow is up 26% over 3 years.
Return on equity is rising
ROE has improved from 5.5% to 9.1%.
Return on capital is rising
ROCE has improved from 5.9% to 10.5%.
Valuation below its historical average
At 7.5x the stock trades 46% below its own median of 13.8x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Inventory building faster than sales
Inventory is up 41% against revenue growth of -2% — stock may not be moving.

Red Flags

3 items require attention · 2 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 9.11x — earnings must service borrowings before shareholders see anything.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Inventory building faster than salesFinancial
Inventory up 41% against revenue up -2% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 11.9% to 17.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 52% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 46% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 89% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 9.11x. Interest is payable whether or not the business has a good year.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 16%✓ 17.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹25 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✓ 10.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 13.8x✓ 7.5x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

5 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 4 neutral · 3 weak

Market Cap

₹543 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

7.5x

Cheap

Cheap against the generic band

P/B Ratio

0.63x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹29.4

Profitable

Profitable on a per-share basis

ROE

9.1%

Moderate

Moderate capital efficiency

ROCE

10.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

9.11x

High

High leverage

Revenue Growth (YoY)

-18.7%

Shrinking

Sales are contracting

Profit Growth (YoY)

-36.0%

Falling

Profits are shrinking

Dividend Yield

0.68%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹25 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹220.9

Operating Margin

4.4%

Weak

Thin margins leave little room for error

Net Margin

10.8%

Good

Strong bottom-line conversion

Current Ratio

2.04

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.37

Defensive

Steadier than the market

52W Range Position

17%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

224.4 / 234.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

46.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹720 Cr	₹597 Cr	₹663 Cr	₹702 Cr	-0.8%
EBITDA	₹86 Cr	₹28 Cr	₹90 Cr	₹125 Cr	+13.4%
EBITDA Margin	11.9%	4.7%	13.6%	17.8%	—
PAT (Net Profit)	₹43 Cr	₹6 Cr	₹47 Cr	₹79 Cr	+22.2%
EPS	₹17.57	₹2.31	₹19.27	₹32.06	+22.2%
ROE	5.5%	0.7%	5.9%	9.1%	—
ROCE	5.9%	-0.1%	6.8%	10.5%	—
Total Debt	₹163 Cr	₹126 Cr	₹96 Cr	₹79 Cr	-21.5%
Free Cash Flow	₹20 Cr	₹16 Cr	₹51 Cr	₹25 Cr	+8.1%

🟡 Revenue has been broadly flat over 3 years (-0.8% a year).

🟢 EBITDA has grown at 13.4% a year over 3 years.

🟢 EBITDA Margin has risen from 11.9% to 17.8% over 3 years (+5.9 pts).

🟢 PAT (Net Profit) has grown at 22.2% a year over 3 years.

🟢 EPS has grown at 22.2% a year over 3 years.

🟢 ROE has risen from 5.5% to 9.1% over 3 years (+3.6 pts).

🟢 ROCE has risen from 5.9% to 10.5% over 3 years (+4.6 pts).

🟢 Total Debt has shrunk at 21.5% a year over 3 years.

🟢 Free Cash Flow has grown at 8.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,000 Cr

Total Liabilities

₹133 Cr

Total Debt

₹79 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹50 Cr

Capex

-₹25 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

79.3%

Corporate Actions

Dividend Rate

₹1.5

Ex-Dividend Date

04 Sept 2026

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

1 positive1 mixed4 general

Is Nahar Poly Films the Best Stock in Its Sector? A Look at the Numbers

Univest, 01 Oct

Nahar Poly Films re-appoints four independent directors for second terms

scanx.trade, 05 Aug

Nahar Poly Net Profit Jumps 51% to ₹19.8 Crore in Q4 Results

Sahi, 28 MayResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Nahar Poly Films Share Price Target 2027 to 2030: Analyst Outlook

Univest, 18 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Nahar Poly Films posts 88% PAT jump to ₹68.3 crore in FY26

scanx.trade, 29 Aug

Nahar Poly Films sets Sep 25 date for 38th annual general meeting

scanx.trade, 02 Sept

Watch Items

Revenue growth is negative (-18.7%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong13.2/20

🟢Financial HealthStrong14.5/20

🟡GrowthModest9.5/20

🟡ProfitabilityModerate9.4/15

🟢ValuationAttractive13.2/15

🔴RiskHigh3.9/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 16%17.8%
✓Free cash flow remains positive₹25 Cr
✓Debt / EBITDA stays below 2x0.6x
✓ROCE stays above 8%10.5%
✓Valuation vs its own median of 13.8x7.5x today