Se­shasayee Pa­per and Boards

Dalal Street Investment Journal - - SPECIAL REPORT -

Se­shasayee Pa­per and Boards Lim­ited (SPB) is a flag­ship com­pany of Esvin Group. It op­er­ates an in­te­grated pulp, pa­per and pa­per board mill at Pal­li­palayam, Erode in Tamil Nadu. The com­pany’s prod­uct range in­cludes print­ing and writ­ing pa­pers, pack­ing and wrap­ping pa­pers and spe­cialty pa­pers. The cur­rent in­stalled ca­pac­ity of the com­pany stands at 1,15,000 tonnes per an­num. SPB'S ex­ports are nearly 20 per cent of its pro­duc­tion and is a sig­nif­i­cant ex­porter in the In­dian pa­per in­dus­try

On the fi­nan­cial front, SPB posted a 1.22 per cent in­crease in its rev­enue to 251.78 crore in Q1FY18 from 248.74 crore in Q1FY17. How­ever, the com­pany’s PBDT de­clined 2.85 per cent to 37.15 crore in the first quar­ter of FY18 on a yearly ba­sis. The com­pany’s net profit de­clined 9.8 per cent to

21.75 crore for the cor­re­spond­ing pe­riod.

On an an­nual ba­sis, the com­pany’s rev­enue rose 15.74 per cent to 1,193.87 crore in FY17, as com­pared to the pre­vi­ous fis­cal. The com­pany’s PBDT rose by 153.2 per cent to 200.18 crore in FY17 on a yearly ba­sis. The com­pany’s net profit rose tremen­dously from 35.58 crore in FY16 to 128.85 crore in FY17. The com­pany’s PE stood at 7.31x, whereas its peers Emami Pa­per Mills and Kuan­tum Pa­pers PE stood at 50.55x and 8.37x, re­spec­tively.

The com­pany had good and con­sis­tent profit growth of 30.45 per cent over the last five years. Also, the com­pany has con­sid­er­ably re­duced its debt. We ex­pect the stock price of SPB to soar.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.