Nahar Poly Films has recently commissioned BOPP plant with capacity of 30,000 tpa at capital outlay of Rs. 300 crores..Plant imported from Bruckner of Germany is equipped with state of the art latest manufacturing facilities.At full capacity utilisation the annual revenue is expected to be approximately Rs.350 Crores with bottom line about Rs. 30 crores thus giving an EPS of Rs. 12 ( equity capital of 2.5 crore shares of FV=5)from BOPP business alone.Besides this company has investments amounting to more than Rs. 200 crores @CMP in Nahar Group companies like Nahar Spinning (6.6 million shares), Nahar Capital (6.6 million shares) ,Nahar Industries (2.7 million shares) and many mutual funds..Company receives decent Dividend income from its investments adding to EPS..
At CMP of Rs. 50, market cap. is Rs. 125 crores while the investment portfolio is more than Rs. 200 crores.BV of the share is Rs. 55 ,and secured loans after implementing the BOPP project is only Rs. 53 crores…At Rs. 247 crores enterprise value of BOPP project the share is available very cheap and is a steal.No wonder Promoters are trying to increase their stake to maximum permissible limit of 75% by buying about 10% from the market..Presently promoters have 65% eqity in the company.
Buy is recommended for atleast 2 years HOLD…
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