Nahar Spinning Mills Ltd: Q1FY23 Result update

The company reported total income of Rs.872.6295 crores during the period ended June 30, 2022 as compared to Rs.739.5291 crores during the period ended June 30, 2021. Photo: Mouth shut.com

The company has posted net profit of Rs.72.2524 crores for the period ended June 30, 2022 as against net profit of Rs.100.3351 crores for the period ended June 30, 2021.

The company reported EPS of Rs.20.03 for the period ended June 30, 2022 as compared to Rs.27.81 for the period ended June 30, 2021.

The company posted net profit of Rs.72.2524 crores for the period ended June 30, 2022 as against net profit of Rs.107.2349 crores for the period ended March 31, 2022.

The fall in net profit is due to high price of cotton, which has come down substantially from the peak levels during the last couple of months.

At the current price of Rs.306.65, the valuations of Nahar Spinning Mills Ltd looks attractive. The scrip can be slowly accumulated with a strict SL of Rs.297.

Textile Sector:

#In order to strengthen textile industry standards, the Bureau of Indian Standards (BIS) is developing Quality Control Orders (QCOs) for specific textile products that have a significant impact on consumer health and safety.

#To attract investments in the textile sector, reform infrastructure, and address logistic bottlenecks, the government of India has launched the PLI Scheme, MITRA Parks Scheme, and GATI Shakti Scheme.

#Indian apparel exports reached an all-time high in 2021-2022, with a $ 44.4 billion export turnover, up more than 40% from the previous year. During the same time period, cotton textile exports (including raw cotton) increased by 54%, reaching $16.42 billion. 

By the way, the Indian textile industry could grow to $250 billion in size and achieve $100 billion in exports.

#The Festival's demand will boost textile companies' sales.

==============

Macroeconomics:

India is in a better position as compared to other emerging economies with a decoupled economy coupled with a pickup in credit growth and GST collections. 

However, the rise in geopolitical risk and the economic slowdown may have a lag effect on Indian Economy and is likely to weaken its performance in the short term.

Meanwhile, the outcome of the RBI's monetary policy meeting on September 30th will be closely watched by investors in the coming week. A rate hike of 50 basis points is widely expected to help strengthen the INR. Low oil prices and strong domestic demand may assist the RBI in maintaining the balance between growth and inflation.

In terms of valuation, India currently has one of the world's most expensive stock market. Therefore, the investors are suggested to be extremely choosy (cautious) while going for stock picking.