Ruchira Paper comparative analysis with peers

Dear members

Today we are going to discuss some Paper company related stocks.
I have short listed two stocks from Paper related companies which can grow fast in near future.

Please fin herewith comparative analysis of some Paper stocks and after that we will discuss both selected stocks one by one.

By seeing all the fundamentals i have shortlisted Ruchira Paper & West coast Paper
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Ruchira Paper Limited ( cmp 140)

The Company is engaged in manufacturing of Writing & Printing Paper which is used for manufacturing of Note Books, Publications etc. and Kraft Paper which is used as a Raw Material in Packaging Industry. The factory is based in Himachal Pradesh close to Baddi, which is an important centre for FMCG and Pharma manufacturing.

• Stock has recently corrected good enough from higher levels.
• Recently company have posted Q4 result of FY18. 

• The Board of Ruchira Papers approved proposal to set up a greenfield project for manufacturing of writing and printing paper in the State of Punjab. The Company is seeking the permission of Punjab Government for change land use of 100 acres of land (approx.). This land is situated at Village Dholran, District Rupnagar, Punjab and shall be utilised for the said project.

source :-   http://www.ruchirapapers.com/pdf/Ruchira_papers_Conference_Call_Q3FY18_Transcript_final.pdf 

• Ruchira Papers proposed expansion plan is of  Rs.1000 Cr in Punjab to make paper from farm residue. Expected to be commissioned by 2019.
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• The Chinese government’s move to ban waste paper amidst environment concerns is expected to benefit the Indian paper manufacturers.

• The global shortage of wood pulp has resulted in increasing prices of finished paper. Indian wood pulp are expected to benefit from increasing global finished paper prices.

•  Indian paper industry is poised to grow and touch 25 million tonnes from 20.37 million tonnes to 2019-20 from 2017-18 at the rate of 10% per annum, according to The Associated Chambers of Commerce and Industry of India (ASSOCHAM) recent paper.

• The paper industry in India looks extremely positive as the demand for upstream market of paper products, like, tissue paper, tea bags, filter paper, light weight online coated paper, medical grade coated paper, etc., is growing up.

• Demand for paper and boxes will grow in tandem with growth of e-commerce. Industry estimates suggest Amazon and Flipkart , top two players in the $17-billion ecommerce sector — consume 1,200-1,400 tonnes of paper that goes into making boxes and printing bills. And the future looks bright 
  
  
  
  
•  CARE has reviewed and revised rating of the company to BBB+.

http://www.careratings.com/findratings.aspx?iid=62

• Trading at PE below of average industry PE.

• Consistent Promoter holding.

• Regular Dividend paying.

• Company has good consistent profit growth of 33.43% over 5 years

https://economictimes.indiatimes.com/industry/indl-goods/svs/paper-/-wood-/-glass/-plastic/-marbles/paper-demand-to-grow-at-6-7-to-20-mn-tonnes-in-fy20-study/articleshow/64274977.cms 

• Paper demand to grow at 6.7% to 20 mn tonnes in FY20: Study of Economic Times
  

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Waste coast Paper (cmp 284)

• The Chinese government’s move to ban waste paper amidst environment concerns is expected to benefit the Indian paper manufacturers.

• The global shortage of wood pulp has resulted in increasing prices of finished paper. Indian wood pulp are expected to benefit from increasing global finished paper prices.

• The companies like West Coast Paper, TNPL and NR Agarwal Industries which majorly import waste paper for manufacturing processed recycled paper are expected to improve margins on account of falling waste paper prices.

• Trading at PE below of average industry PE.

• Promoter increased holding.

• Regular Dividend paying.

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We stock tigers believe that both the stocks are at attractive valuation and at attractive price. we have added both stocks in our Long Term Portfolio.

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Happy Investing

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This is a personal blog and presents entirely personal views on stock market for only education purpose. Any statement made in this blog is merely an expression of my personal opinion. These informations are sourced from publicly available data. By using/reading this blog you agree to (i) not to take any investment decision or any other important decisions based on any information, opinion, suggestion, expressions or experience mentioned or presented in this blog (ii) Any investment decisions taken if any would be his/hers sole responsibility. (iii) the author of this blog is not responsible. 

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NOTE : THE ABOVE IS NOT A RESEARCH REPORT NOR A RECOMMENDATION  BUT INFORMATION AS AVAILABLE ON PUBLIC DOMAIN. 

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