Stock for Short to Medium Term Perspective :

Kauntam Papers : CMP 32

Bse Code : 532937 

Target : 50-53

Time- Frame : 8-10 Months


A  Hidden GEM in the segment of Paper Industry is Kauntam Papers. Listed on BSE , it is a  regular dividend-paying company presently trading at a PE of 3 Compared to that of 12 of the Industry.The paper plant is located at Sailakhurd, District Hoshiapur in Punjab, situated on the main National Highway connecting Chandigarh – Hoshiarpur – Pathankot, spread in an area of 257 acres. The plant is an integrated facility to make pulp and paper with a capacity of 100,000 tonnes per annum of finished paper. The pulping section is equipped to handle various kinds of agricultural residues, straws, bagasse, and wood. At present EPS of 5 Rs the Valuation of the share can be at Rs 55-60 per share if the growth rate continues at the same pace. At present the book value of the Stock is around Rs 73 per share. The company's Secured loan has decreased substantially over the period of last 2 years and unsecured loan has increased in small amount.The Company has even made re-payment of CAPITAL of Preferential share holders upto a certain extent in last 2 years.The Networth of the organisation has been consitently increasing over the period of last 5 years. The company is presently carrying out expansion and its Turnover has also increased consistently since last 5 years inspite of the recessionary period of 2008. As per our opinion the shares of the company are attractive to make investment at current market rate of Rs 32 for expecting growth and Gain in Future.



Disclaimer :  We shall not be liable for any Loss/Gain arising from our opinion expressed above. It is purely based on our own analysis and it does not infringe any copyrights.