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Nahar Industrial Enterprises (BOM:519136) Beneish M-Score : -2.20 (As of Dec. 12, 2024)


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What is Nahar Industrial Enterprises Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.2 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Nahar Industrial Enterprises's Beneish M-Score or its related term are showing as below:

BOM:519136' s Beneish M-Score Range Over the Past 10 Years
Min: -3.97   Med: -2.7   Max: -2.08
Current: -2.2

During the past 13 years, the highest Beneish M-Score of Nahar Industrial Enterprises was -2.08. The lowest was -3.97. And the median was -2.70.


Nahar Industrial Enterprises Beneish M-Score Historical Data

The historical data trend for Nahar Industrial Enterprises's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Nahar Industrial Enterprises Beneish M-Score Chart

Nahar Industrial Enterprises Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.07 -2.70 -2.08 -3.97 -2.20

Nahar Industrial Enterprises Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - -2.20 - -

Competitive Comparison of Nahar Industrial Enterprises's Beneish M-Score

For the Textile Manufacturing subindustry, Nahar Industrial Enterprises's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Nahar Industrial Enterprises's Beneish M-Score Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Nahar Industrial Enterprises's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Nahar Industrial Enterprises's Beneish M-Score falls into.



Nahar Industrial Enterprises Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Nahar Industrial Enterprises for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.2407+0.528 * 1.0828+0.404 * 1.1848+0.892 * 0.8302+0.115 * 1.1094
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0226+4.679 * 0.049206-0.327 * 1.4571
=-2.20

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar24) TTM:Last Year (Mar23) TTM:
Total Receivables was ₹1,700 Mil.
Revenue was ₹14,642 Mil.
Gross Profit was ₹2,859 Mil.
Total Current Assets was ₹8,835 Mil.
Total Assets was ₹16,577 Mil.
Property, Plant and Equipment(Net PPE) was ₹5,247 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹458 Mil.
Selling, General, & Admin. Expense(SGA) was ₹331 Mil.
Total Current Liabilities was ₹5,606 Mil.
Long-Term Debt & Capital Lease Obligation was ₹847 Mil.
Net Income was ₹97 Mil.
Gross Profit was ₹0 Mil.
Cash Flow from Operations was ₹-718 Mil.
Total Receivables was ₹1,651 Mil.
Revenue was ₹17,638 Mil.
Gross Profit was ₹3,729 Mil.
Total Current Assets was ₹6,937 Mil.
Total Assets was ₹13,607 Mil.
Property, Plant and Equipment(Net PPE) was ₹4,941 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹483 Mil.
Selling, General, & Admin. Expense(SGA) was ₹390 Mil.
Total Current Liabilities was ₹3,127 Mil.
Long-Term Debt & Capital Lease Obligation was ₹508 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(1700.279 / 14642.18) / (1650.775 / 17637.633)
=0.116122 / 0.093594
=1.2407

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(3728.658 / 17637.633) / (2858.78 / 14642.18)
=0.211404 / 0.195243
=1.0828

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (8834.547 + 5247.183) / 16577.296) / (1 - (6937.228 + 4940.904) / 13606.984)
=0.150541 / 0.127056
=1.1848

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=14642.18 / 17637.633
=0.8302

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(483.35 / (483.35 + 4940.904)) / (458.259 / (458.259 + 5247.183))
=0.089109 / 0.08032
=1.1094

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(330.827 / 14642.18) / (389.709 / 17637.633)
=0.022594 / 0.022095
=1.0226

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((846.701 + 5606.068) / 16577.296) / ((508.111 + 3126.972) / 13606.984)
=0.389253 / 0.267148
=1.4571

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(97.316 - 0 - -718.392) / 16577.296
=0.049206

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Nahar Industrial Enterprises has a M-score of -2.20 suggests that the company is unlikely to be a manipulator.


Nahar Industrial Enterprises Beneish M-Score Related Terms

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Nahar Industrial Enterprises Business Description

Traded in Other Exchanges
Address
Focal Point, Ludhiana, PB, IND, 141010
Nahar Industrial Enterprises Ltd is a textile manufacturing company. The company operates through two segments: Sugar and Textile. The Textile segment offers yarn and fabric. The Sugar segment is engaged in producing sugar. The company's product offerings include various types of yarns, such as cotton yarns, blended yarns, woollen, woollen blended, Cotton, Polyester Cotton, Other Blended, Compact Yarn, Mercerized Gassed Yarn. It also manufactures printed fabrics, specialty and performance fabrics, and indigo yarn-dyed shirtings for use in apparel and home furnishings. The firm derives a majority of revenue from the Textile segment.

Nahar Industrial Enterprises Headlines

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