N R Agarwal Industries
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.