Shares of Nahar Spinning Mills have soared to a 1 year high. Know why

Shares of Nahar Spinning Mills, a midsized textiles maker, surged to 1-year highs after the company swung to a quarterly profit on the back of a drop in raw material costs.

Nahar Mills said its first quarter Net Profit stood at 26.4 crore rupees compared with a loss of 11.5 crore rupees in the same quarter a year ago. Sales during April-June fell 3 percent to 513 crore rupees from 528 crore rupees in the year ago period. Nahar Mills said its raw material costs fell to 280 crore rupees from 344 crores, a drop of 18.6 percent over one year.

As a consequence, Nahar Mills surged 19.15 rupees, or 15 percent, to 146.55 rupees, its highest since July 2014, on the National Stock Exchange, where 4.36 lakh shares were traded by 11:10 am compared with the 5-day average of 2.47 lakh shares.

Nahar Mill's market capitalisation has remained flat at 528 crore rupees over the past one year.

image credit: Indiatimes