Equity Watch

Nahar Poly Films: the company to watch for decent gains

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… 

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

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2 thoughts on “Nahar Poly Films: the company to watch for decent gains

  1. N R V MOHAN says:

    Is it not a company named “Nahar Exports” whose operating business was merged with Nahar Spinning. I was of the opinion that it is a holding company and worth 70% discount to market value of its investments. Thanks for new info.

    Like

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