Is it worth to buy Himalayan Distillery’s share at Rs 2050? EPS stands at Rs 10.09 only

Himalayan Distillery Limited (HDL) one of the leading trading business company of Nepal, has published its fourth quarter report of the FY 2073/74 today. It has reported net profit of Rs 3.88 crore up from Rs 2.42 crore of the corresponding quarter of the last FY 2072/73. Its current paid up capital stands at Rs 38.56 crore. Reserve and surplus of the company amounts to Rs 20.27 crore from Rs 16.39 crore --rises by 23.69%. HDL’s earning per share (EPS) stands at Rs 10.09 per share and Net worth per share stands at Rs 152.59. Its LTP stood at Rs 2050 as on August 13, 2017. The price hike in HDL from Rs 700 – Rs 750 in short trading period seems to be irrational increment with accordance to the performance of the company. Investors must be cautious while buying such company’s stock as it may be mutual transactions by tycoons to hike the price. Investors cannot expect much more dividends from the company as EPS of the company is only at Rs 10.09. Thus one must analyze the financials of the company carefully before investing in such stock.