Star Paper Mills
Star Paper Mills Limited (SPM), established in 1938, is an integrated pulp and paper mill. The company is part of Duncan Goenka Group. The company produces a wide range of papers such as SS maplitho white/natural shade, greeting paper, kraft paper, padding paper, MG poster, Stiffner cover, cartridge paper, Azurelaid, and many more. These products have applications in paper printing, lottery printing, computer stationery, book printing, packaging various products, defence/ammunition packing and many more. The company has an in-house R&D unit recognised by the Ministry of Science & Technology, Govt. of India. The company mostly caters to demand in the domestic market.
On the financial front, SPM posted 18.92 per cent increase in its revenue to 88.93 crore in Q1FY18 from 74.78 crore in Q1FY17. The company’s PBDT increased 16.27 per cent to 19.15 crore in the first quarter of FY18 on a yearly basis. The company’s net profit rose 5.96 per cent to 13.52 crore for the corresponding period. On an annual basis, the company’s revenue rose 18.96 per cent to 324.12 crore in FY17 compared to the previous fiscal. The company’s PBDT rose 184.95 per cent to 71.21 crore in FY17 on a yearly basis. The company’s net profit rose tremendously from
16.5 crore in FY16 to 59.94 crore in FY17, registering 262.27 per cent increase.
The company’s PE stood at 4.60x, whereas its peers Tamil Nadu Newsprint and Kuantum Papers PE stood at 23.18x and 8.37x, respectively. We expect price of SPM to rise.