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NAHAR SPG: Intrinsic Value/Potential
TP: ₹ 190

🌈 Five Lakh Spindles, 12.5 million Garment capacity, 4.5 TPD process house. New plant with same capacity will entail 2700 Cr capex
🌈 Sales 2327 Cr, Ebidta 243 Cr EPS Rs 18.22 Cash EPS Rs 41.41 in FY19
🌈 Q3FY21Ebidta 64Cr vs 9 Cr Ebidta Loss Q3FY20
🌈 Q4FY21E ebidta 85 Cr Vs 15 Cr Ebidta Loss Q4FY20
🌈 Although cotton yarn prices currently 30% up, as conservative working even if we take 20% rise,

✈️ FY22E Ebidta 300 Cr PBT 170 Cr PAT 120 Cr. EPS Rs. ₹33.5 Cash EPS Rs ₹55.9

Possible that Nahar Spinning can surpass it's previous high of 190.

Important: New Spinning mill cost Rs 50000/spindle. Hence, well established big mills like Nahar Spinning will continue to have big advantage of Head start

Personal due diligence advised. TP subject to mkt conditions