Nagarjuna Oil Refinery on upper circuit at Rs 4.70~Saviour in Sight?

Two year ago I had covered Nagarjuna Oil Refinery for a leading Broker on his request when he had excitedly come across to me to confirm if it indeed was a multi-bagger like he had been advised…he had already commenced buying it for Clients and himself and had planned to invest heavily into it

I had advised him against doing so as there were too many challenging issues the Refinery faced  despite having pedigree promoters that included the Tamil Nadu Govt and The Tata Group

Nagarjuna Oil Refinery Ltd  is the listed company whose FV Rs 1 Share hit and remained all day on upper circuit today on BSE at Rs 4.70.It derives it’s value from the 46.78% Equity holding in the unlisted Nagarjuna Oil Corporation Ltd (FV Rs 10) which is setting up a 6 mmpta refinery in Cuddalore and has been facing one set back after another over the years and after deploying Rs 6350 crs it’s survival and completion depended on Fresh Infusion of another Rs 10000 crs

Is there a Foreign Saviour in Sight ?

Check out this just posted comprehensive coverage on my company’s website in the SCRIP WATCH Module

Nagarjuna Oil Refinery @ Rs 4.70 ~ Saviour in Sight? ~ 18-Jun-2015

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