MAHARAJA SHREE UMAID MILLS

This Rajasthan based company, belonging to the LN Bangur group manufactures cotton yarn and dyed fabric. The company, on a YoY posted a good set of numbers for Q1FY13 with a net profit at Rs.6 crore, up from rs.24 lakh in Q1Fy12 on a net sales of Rs.119 crore, up 24%. Other income of Rs.3.10 crore helped shore the bottomline and so did the fall in raw material prices though it was more than up by the rise in power and fuel costs. Depreciation was also up almost 2 times.

The big attraction in the company is the large pocket of surplus land which it holds – at Pali, 69 acres and 50 acres at Kota. The company plans to develop the land for residential and commercial purposes. If one may recollect, it had sold land in Jaipur and earned Rs. 150 crore and it also sold 21.65% stake in AP Paper.  As at end of 30th June 2012, promoters held 74.82% stake. Annualised EPS of around Rs.9 discounts the current price by 15 times at current price of Rs.134.