Investment Idea-Nahar Industrial Enterprises Ltd(28-6-14)

Investment Opportunity: Nahar Industrial Enterprise Ltd. 

Industry: Textile-Cotton Blend

Horizon: 12 to 18 months

(NSE Symbol: NAHARINDUS | BSE Code: 519136)

Last closing price (27-06-2014): Rs.78.15             Face Value:-Rs.10/-

Price Background: The all-time high for the script is Rs.209 was made on 13.9.2004 and all-time low of Rs.4 was made on 12.9.2000.High and Low for year 2013 was Rs.62 & Rs.27 . The low for year 2014 (as on date) is Rs.46.05 made on 20.1.2014.

Fundamental: The Company has come out with good financial result and posted Net Profit of Rs.69.25 crore for FY 2013-14 against Rs.41.84 crore for FY 2012-13. The EPS for current year is Rs.17.38 against Rs.10.50 for the last year and  company has declared dividend of 10% also. At the current rate, the stock is at very low P/E of 4.49. Therefore, I feel that the stock has good potential to move up.

Technical: Technically the stock is nicely poised.

Recommendation: I expect a return of 50-75 % in 12-18 months. I therefore recommend investing at least 40% of the marked fund for the script at the current level and then suggest buying on dips. Kindly be alert if the stock price goes below 62 and stays at that level. Please get out of the stock if price closes below 58. 

Note:

1.    Price stated here is of spot market

2.    Recommendations are valid till the stop loss is triggered

3.    Kindly note that make your cost your stop loss in favorable trade and then trail it as the price of the stock moves up to gain maximum profit.

 Contact me for strategic guidance to enter and exit the trade