Donear once again on 20% UC

Donear Industries hit a new 52-week high today at Rs.24, locked on the 20% upper circuit, like the way it was yesterday. In a span of less than a month, the price has doubled up.

In our Market Whispers column, yesterday, our Editor, Mr.SP Tulsian had recommended the stock as a good investment buy. He had said that Donear makes high quality Suitings and Shirting, with capacity of 36 million meters per annum, at its 2 Silvassa and 1 Surat plant, having weaving, Yarn Dyeing & Process House. He found the stock to be hugely undervalued at Rs.17 given its fundamentals and profile. The company is making wrinkle free premium cotton fabrics, supplying to all leading brands. Promoter stake is at 75%, while cash EPS for FY16 is seen at close to Rs.6, as company is providing depreciation on WDV basis. FII activity on the counter has also gone up, which could be the prime reason for this 20% UC for two consecutive days.