10000 to 4crs in 18 months 1000rs to 50crs 300% returns 75% promoter holdings A 50 bagger A sureshot 5 bagger Analysis Another fraud? Auto ancillaries Bank sector Blind sell Brand plays Broking Bse Nse Buy calls cements Ceramics/tiles Counters I don't like Debt free businesses Delisting candidates demerger bets Disclosure- I own them Domestic consumption plays E-Commerce pick Education Exit at rallies Famous analysts Famous stocks FMCG Footwear future multibaggers Gems andJewellery Hidden gems High conviction ideas High dividend plays High potential small caps High ROE stocks Holding companies Hotel sector How they looted you.. Indian stock market Infrastructure sector Interesting Microcaps IT KPO Landbank plays largecap ideas Less than 5 PE stocks Liquor Logistics Market lessons Market outlook for 2013 and 2014 Market underperformers Meeting with the CEO Metals Monopoly businesses My 5 baggers My Favourite counters My paid stock recommendations My stock picking techniques nse bse tips Oil exploration Operator calls Paints Penny stock outlook penny stock updates Pharma sector Poultry stocks PSU Publicity freaks Real estate Renewable energy plays Safe bets Sell recommendations Share market Live shipping stocks short term call SOTP plays stock tips stock under 10rs Stocks to watch out for Strong bonus candidates Takeover candidates TATA product tea Textiles The 13 bagger The 45 bagger Trading companies Transformers Turnaround bets Tyres Uncertain/Risky business models Unique businesses

Search This Blog(Over 800 companies covered in the blog).

Archives : Old artciles

Saturday, October 30, 2010

Ruchira Papers Ltd:-Good bet in the paper sector

Scripscan:Ruchira Papers Ltd
Percentage return:30%
Duration:4-6 months

Story:Five points to qualify ruchira as a good short term buy.

1)Ruchira Papers' manufactures kraft paper, which is largely used by the packaging industry.Ruchira started with Kraft paper production in 1983 with capacity of just 2300 tonnes per annum which has been now expanded to 52,800 tonnes.The company enjoys locational advantages as it is situated near the hub of agricultural activity

2)The company has recently hiked its prices and hopes to report a turnover of not less than 250crs.Last year, Ruchira had incurred losses but with commissioning of Cogen and Chemical Recovery plant, its operations have turned highly profitable.

3) The company has big plans into the writing and printing paper segment, which is on an uptrend.With the governments focus on education and scope for improvement in literacy levels, revenue growth prospects appear to be bright.

4)Ruchira has made a strong turnaround in Q1 and has achived PAT of 4.12 as against loss in previous year. Presently, it WPP plant is operating at more than 100% capacity and Kraft paper plant at nearly 90% capacity. Price of its main raw material i.e. agro-residue and agro-waste have come down leading to enhancement of profit margins.The company further expects a 40% drop in its basis raw material prices which would help it to achieve a healthy 30% margin.

5)Ruchira papers should report a profit of 16crs for the full fiscal which gives an EPS of 7rs.At present price of 18 its quoting at a PE of less than 3 times its 6 month forward earnings.The scrip therefore is highly undervalued and merits an investment at present prices.

Important Disclaimer&Privacy policy

This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.

Subscription to Arunthestocksguru

Enter your email address:

Delivered by FeedBurner