Nath Industries Stock Surges 18% After Staggering 12,425% YoY Profit Growth
Nath Industries: Nath Industries, a micro-cap company engaged in the manufacturing of paper and industrial chemicals, has taken the stock market by storm after posting exceptional Q3FY25 results. The company’s net profit skyrocketed by an astounding 12,425% year-on-year (YoY), leading to a sharp surge of nearly 20% in its share price.
This remarkable growth has drawn significant investor interest, positioning Nath Industries as one of the top-performing penny stocks in recent times.
Stock Performance & Market Movement
The stock opened at ₹84.40, reflecting a 17.74% jump from its previous closing price of ₹71.68. It further climbed to an intraday high of ₹85.80, marking a 19.69% surge. With a market capitalization of ₹157 crore, Nath Industries is now catching the attention of both retail and institutional investors.
Key Stock Details
- Market Cap: ₹157 Crore
- Current Price: ₹80.6
- 52-Week High / Low: ₹86.0 / ₹53.7
- Stock P/E: 25.0
- Book Value: ₹131
- Industry P/E: 13.5
- Debt: ₹101 Crore
Q3FY25 Financial Highlights
The company reported robust growth across key financial metrics, demonstrating its strong operational and financial performance:
Revenue Growth
- Nath Industries’ revenue surged by 48.14% YoY, increasing from ₹77.24 crore in Q3FY24 to ₹114.43 crore in Q3FY25.
- On a quarter-on-quarter (QoQ) basis, revenue grew by 18.82% from ₹96.30 crore in Q2FY25.
Net Profit Explosion
- Net profit witnessed a staggering 12,425% YoY growth, jumping from a meager ₹0.04 lakh to ₹5.01 crore.
- On a QoQ basis, net profit soared by 749.15%, up from ₹0.59 crore in the previous quarter.
Profit Margins
- Operating Profit Margin improved to 9.24% in Q3FY25, compared to 5.54% in Q3FY24.
- Net Profit Margin surged from 0.06% to 4.38%, showcasing the company’s enhanced profitability.
Revenue Contribution by Segments
Nath Industries derives its revenue from two primary segments:
- Paper Division (63.50%) – The company’s largest revenue-generating segment.
- Chemical Division (36.50%) – Witnessed strong demand, contributing significantly to revenue growth.
The management remains optimistic about the chemical division’s future performance, expecting sustained demand in the upcoming quarters.
Key Financial Ratios
- Return on Capital Employed (ROCE): 2.77%
- Return on Equity (ROE): 0.20%
- Graham Number: ₹97.3
- Intrinsic Value: ₹58.0
- PEG Ratio: -0.75
- Face Value: ₹10.0
- Dividend Yield: 0.00%
Operational Outlook & Future Growth Potential
Nath Industries has shown remarkable financial resilience and operational efficiency. The management attributed the surge in net profit to improved margins, cost efficiency, and robust demand for its chemical products.
With ongoing expansion plans and strong fundamentals, the company is poised for further growth. Investors are closely monitoring the stock for potential long-term gains.
About Nath Industries
Nath Industries is a diversified Indian company engaged in:
- Paper Manufacturing
- Specialty Chemicals
- Agribusiness
The company operates facilities in Mumbai, Aurangabad, and Vapi, catering to various industries, including packaging, textiles, pharmaceuticals, and FMCG. With a strong focus on sustainability and innovation, Nath Industries continues to expand its market presence.
Conclusion: Is Nath Industries a Good Investment?
The stock’s massive profit growth and strong revenue expansion have made it an attractive pick in the micro-cap segment. However, investors should consider its relatively low ROE (0.20%) and high debt (₹101 crore) before making investment decisions.
Why Investors Are Excited:
✅ Massive YoY profit growth (12,425%)
✅ Strong revenue growth (48.14%)
✅ Improving margins and operational efficiency
✅ Growing demand in the chemical segment
Risks to Consider:
❌ High debt (₹101 crore)
❌ Low ROE and ROCE
❌ Highly volatile stock movement
Overall, Nath Industries has delivered one of the most impressive earnings performances in recent times. If the company continues on this growth trajectory, it could unlock significant value for long-term investors. However, as with any penny stock, investors should exercise caution and conduct thorough due diligence before making investment decisions.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.