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Investmet in Nahar Spinning can spin profits

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.

This report has been prepared solely for information purposes and the information contained herein may not be deemed to be an investment advice. Such information is impersonal and not tailored to the investment needs of any specific person. The information contained herein is not a complete analysis of every material fact representing any company, industry or security. The views expressed may change. While the information contained herein has been obtained from sources believed to be reliable, no responsibility (or liability) is accepted for the accuracy of its contents. Investors are advised to satisfy themselves before making any investments and should consult with and rely upon their own advisors whether and how to use such information in making any investment decision. Neither the author nor his firm accepts any liability arising out of use of the above information/ article.

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