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11:28-30 - "Come to me, all of you who are weary and over-burdened, and I will give you rest! Put on my yoke and learn from me. For I am gentle and humble in heart and you will find rest for your souls. For my yoke is easy and my burden is light."

9 May 2018



Pudumjee Pulp & Paper Mills Ltd. (PPPM) established in the year 1964, started with the manufacture of high quality papers to meet customers critical and demanding requirement in packaging of food and oily products. Pudumjee Paper Products Limited was incorporated on 14th January, 2015 as a public limited company under the provisions of the Companies Act, 2013. Pursuant to the Scheme of Arrangement and Reconstruction (Demerger) between Pudumjee Pulp & Paper Mills Limited (PPPM), Pudumjee Industries Limited (PIL), Pudumjee Hygiene Products Limited (PHPL), Pudumjee Paper Products Limited (PPPL) and their respective Shareholders and Creditors, the paper manufacturing businesses of PPPM, PIL and Hygiene products business of PHPL have been transferred to Pudumjee Paper Products Limited with effect from 1st April, 2014 vide order of Hon`ble Bombay High Court. The Company`s manufacturing capacity of 60,000 MT per annum comprises of 2 state of the art fourdrinier specialty paper machines supplied from Voith Sulzer Germany which is updated from time to time with current capacity of 38000 MT per annum and 2 Yankee Machines with combined capacity of 22,000 MT per annum for production of crepe tissue products, M.G. Papers and other specialty products. PPPL`s distribution network has a presence Pan-India and an effective reach in Europe, South-East Asia, U.A.E, and Iran amongst others. The Company`s equity is Rs.9.50crore while company has huge reserve of around Rs.215.45crore. Promoters hold 67.11% while investing public hold 32.89% stake in the company. Promoter have increased 0.22% stake in Q4FY18 which is positive sign. It has reduced debt by Rs.30.19crore in FY17. During FY17, its net profit zoomed 96.34% to Rs.19.87crore on 9.49% higher sales of Rs.513.84crore fetching an EPS of Rs.2.09. During Q3FY18, net profit soared 31.21% to Rs.6.18crore from Rs.4.71crore in Q3FY17 on sales of Rs.131.27crore fetching an EPS of Rs.0.65. During 9MFY18, net profit zoomed 11.75% to Rs.15.59crore from Rs.13.95crore in 9MFY17 on sales of Rs.372.42crore fetching an EPS of Rs.1.64. Currently, the stock is trading at 14x. Pudumjee has established a strong market positioning with around 40% market share in the various sub-segment of specialty paper which supported by extensive experience of the promoter and a wide range of product portfolio. Recently some paper companies have declared fantastic numbers for Q4FY18. Looking at the trend other paper companies like Pudumjee may also declare good numbers for Q4FY18. Investors can accumulate this stock with a stop loss of Rs.27. It may give very good returns in medium to long term. Consult with your trade advisor and take decision. Good luck. 

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