Bombay Dyeing Hits 52-Wk High on Settling Dispute with Axis Bank

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Bombay Dyeing Hits 52-Wk High on Settling Dispute with Axis Bank
Credit: © Reuters.

By Malvika Gurung -- Shares of the flagship company of the Wadia Group, Bombay Dyeing (NS: BDYN ) zoomed 7.8% and hit a new 52-week high of Rs 146.45 apiece in the morning trade on Tuesday.

The leading textiles producer’s shares surged after the company announced that it has settled the dispute with private sector lender Axis Bank (NS: AXBK ).

Bombay Dyeing has executed a Conveyance Deed on September 4, 2023, in favour of Axis Bank effecting the transfer of land admeasuring 11,541 square meters.

This will lead to independent and exclusive access to the banking major’s headquarters, for an approximate sum of Rs 149 crore, subject to conventional terms and conditions, Bombay Dyeing stated on Monday.

The two parties (Bombay Dyeing and Axis Bank) have been engaged in certain disputes or arbitration. The third largest private sector bank challenged the Award dated March 11, 2022, passed by the Arbitrator in favour of Bombay Dyeing.

Shares of the small-cap company have jumped 23.2% in a month and rallied 74.8% so far in the calendar year 2023.

InvestingPro’s financial models appear bearish on the textile stock and have an average fair value of Rs 114.19/share set on it, indicating an 18% downside.

The most bearish coverage comes from the ‘Price / Book Multiples’ investing model, which has a fair value of Rs 75.92 set on Bombay Dyeing’s stock, suggesting a potential downside of 45.45% from the last traded price (LTP).

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