M/S Bharat Seats Ltd. was floated to manufacture of automobile seats. The promoters include Relan Family, Maruti Suzuki India Ltd., Suzuki Motor Corporation and the total promoters holding is over 74 percent. The floating public stock is less than 20 percent.
The company has a share capital of about 6.28 crores made up of 3.14 crore shares of Rs.2.00 each. The company issued bonus shares of 1:1 and split the shares into face value of Rs.2.00 each during 2007-08. Even after the bonus and split, the share commands a good book value.
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The company is showing decent sales numbers and can be regarded as a small auto ancillary company and with good parentage.
The share price (ex-split etc.) saw a high of around 30 during November – December 2007 but due to market melt down after January 2008, the share reached a bottom of around Rs.12.00 or so. Now interest has again surfaced in this share.
Considering the strong parentage and decent sales/profits, we expect the share to show some positive movement and show an increase of about 40% in one year. Conservative investors can consider investing in this share.
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