N R Agar­wal In­dus­tries

Dalal Street Investment Journal - - SPECIAL REPORT -

NR Agar­wal In­dus­tries Lim­ited (NRAI) is en­gaged in the busi­ness of pa­per man­u­fac­ture and mar­ket­ing for more than two decades. The com­pany was among the first in In­dia to man­u­fac­ture pa­per prod­ucts through the re­cy­cling route. The com­pany is head­quar­tered in Mum­bai and con­ducts all its man­u­fac­tur­ing op­er­a­tions in Vapi, Gu­jarat.

It ex­ports qual­ity pa­per prod­ucts to more than ten coun­tries. The com­pany ad­dresses two cat­e­gories: writ­ing and print­ing pa­per and du­plex boards. The to­tal man­u­fac­tur­ing ca­pac­ity of the com­pany is 3,06,000 TPA.

On the fi­nan­cial front, NRAI posted a 14.27 per cent in­crease in its rev­enue to 288.93 crore in Q1FY18 from 252.84 crore in Q1FY17. Also, the com­pany’s PBDT rose 29.48 per cent to 27.71 crore in the first quar­ter of FY18 on a yearly ba­sis. The com­pany’s net profit rose 77.02 per cent to 21.42 crore for the cor­re­spond­ing pe­riod. On an an­nual ba­sis, the com­pany’s rev­enue rose 16.85 per cent to 1,040.54 crore in FY17 com­pared to the pre­vi­ous fis­cal. The com­pany’s PBDT rose 252.2 per cent to 97.01 crore in FY17 on yearly ba­sis. The com­pany’s profit af­ter tax rose tremen­dously by 293.9 per cent from 17.83 crore in FY16 to

70.23 crore in FY17.

The com­pany’s PE stood at 5.92x, whereas its peers Emami Pa­per Mills and Kuan­tum Pa­pers PE stood at 50.55x and 8.37x, re­spec­tively. We ex­pect price of NRAI to go up.

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