How share pricing Works?

[IamGautia]

I was looking at a share (Surat Textile mills) and the share price is around 1.30 rs and has very low float, that is it has just 22 crore share outstanding. This company has zero debt and eps of around .50 paise per year and even if we leave these things aside, this company has over 55 crores as cash reserves basically invested in Mutual funds and stuff so shouldn't the share price be at least more like 2.50 or something accounting just for the cash reserves alone? Am i missing something or is this something to do with the sector as it's a textile company? How fundamental analysis works truly baffles me?

On one hand I think I am truly missing an opportunity on a good stock as it has potential to at least go to 3-4, on the other I am frightened what if this pricing anomaly doesn't change over time and the stock doesnt' give any meaningful return in the future and my investment is a dud...

 

[Soh325R]

Share pricing generally calculated on the demand and supply of the share at a particular time in the market hours. Price of the share depends upon the market sentiments such as macro (related to overall economy and effects to each company and sector)and micro factors (related to changes in company’s management and operational efficiency). If the price is low it will increase the demand for shares and vice-versa.