After remaining suspended on BSE and NSE for about 2 months because of demerger and financial re-engineering, Nahar Spinning Mills started trading on Friday the 23rd March, 2007.The share saw huge selling on first day and was frozen at the lower circuit @ Rs. 149.
Looking at the fundamentals of the company with Equity capital of Rs. 18 crores ,3.6 crore shares of FV Rs. 5 ,expected turnover of Rs. 1000 crore + for FY07 and Rs. 1250 crores for FY08 and PAT of Rs. 100 crores and Rs. 125 crores for FY 07 and FY 08 respectively, the share is available at P/E of less than 5.Its very much underpriced and one can take a position in this stock for short and long term .In the long term company is expected to come out with a scheme of demerging the huge land bank that the company is having and giving the shares of this co tentatively named as Nahar Realty to its shareholders.This will unlock the shareholders value and take the company’s share to dizzy heights just like Bombay Dyeing.
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