Thursday, November 6, 2014

SOUTH INDIA PAPER MILLS LTD (516108) :- SAFE STOCK FOR LONG TERM

Dear investors,


             Today we are discussing stock for minimum risk taker in long term portfolio.
  

                   "SOUTH INDIA PAPER MILLS LTD"



  THE SOUTH INDIA PAPER MILL LIMITED  :-Both Paper Manufacturing Unit and Packing Divisions are aimed at bringing the company closer to it end consumer industries and delivering a quality product consistently by implementing an organised quality assurance system. The company’s future investments will be oriented to delivering quality packaging fully integrated with logistics support to the plants of its key customers at multiple geographic locations in the country.

 PAPER MANUFACTURING UNIT :-
           The paper plant is located 150 km from Bangalore near Nanjangud in Karnataka state. The current capacity is about 200 MT/day.
The manufacturing process is based on the recycling of scrap paper both imported and domestic. Some purchased pulp is also used. Paper is manufactured on three paper machines of capacity 45TPD (1.83m wide), 50 TPD (2.55m wide) and 115 TPD (2.88m wide). The plant is fully supported by a 7.5 MW biomass based Cogeneration Power Plant. About 1.5 to 2.0 MW of excess electricity is exported to the state grid.
The plant is well connected to the major industrial areas in the southern peninsula by NH 212 (to be 4 laned shortly) and the Bangalore- Mysore 4 lane State Highway.

PRINTING & PACKAGING DIVISION :-
           
The market for corrugated packaging is characterized by an extreme fragmentation of capacities. The level of investment, processing technology, product quality and productivity are also very low by international standards.
Recognizing the limitations of this industry structure in an increasingly demanding environment in terms of quality, delivery lead time and volume, the Government recently amended the Industrial Development Act to remove the manufacture of corrugated fiber containers from the list of products reserved for exclusive manufacture by Small Scale Industries

  PRODUCTS 

     In addition to the basic features of dry, dimensionally accurate and odour free boxes with an aesthetically pleasing finish, value enhancement would be in terms of improved/optimized box structural designs with superior multi-colour graphics and other features that will enhance the package appeal and convenience of display so important in modern trade retailing.
Besides plain brown boxes with single colour flexo graphic printing and glued or stapled closures, SIPM PPD is equipped to produce boxes and shelf ready packaging with four colour flexographic process printing in die cut or Regular Slotted designs.
Recognising the growing need for small and micro fluted boxes with high quality multi- colour graphics, the division is equipped with appropriate corrugating machinery for single face sheets, high speed litho laminating and die-cutting equipment.
Based on customer demand and specifications, investment in specialty folder-gluers for trays, crash-lock cartons and other similar formats is planned. SIPM-PPD Product Development team would be most happy to discuss your specific applications and product development requirements.

  Details of company HERE

   Promoter holding 44.3% of 15cr paid up equity capital company given 1:1 bonus in 2010. In sept 2014 half year results company posted 8.24 net profit an EPS of 5.5  last full year EPS was just 2.59. expected EPS of 2014-15 full year around 11.50. Paper sector PE is 12 company trading at 5.5 times in forward earnings is compare very low PE stock with 15% dividend.

    Stock is trading only in BSE @ 69  one can buy this stock in correction 60 level is  low risk good return in long term portfolio.


Disclosure :-  I am interested this company shares.

7 comments:

  1. Thanks sir for recommending such a wonderful company. i am new to this blog and really fortunate to come across your blog. You are doing wonderful job. God bless. thanks sir
    nirav karia

    ReplyDelete
  2. Sir

    Kindly advice why Majestic Auto shares are decreasing price . Any special reason

    ReplyDelete
    Replies
    1. Status updated in blogs, up and down is the part of the market.

      Delete
  3. Sir , I am not able to trade this stock on BSE ....any idea about this

    ReplyDelete
  4. Sir can you please update on SPEL semiconductor. In other words can you please throw more light on it. thanks

    ReplyDelete