VALUE PICK APRIL ’18: Ruchira Papers Limited

Company Background –

History

It was in the summer of 1980 when 3 young men, all from diverse fields, starkly different personalities, parallel running ideals met and an idea took germ, which today known as Ruchira Papers Limited.

Business

Incorporated on December 8, 1980, Ruchira Papers Ltd is engaged in the manufacturing of –

(1) Writing & Printing Paper {used for multiple purposes like printing and stationery} and

(2) Kraft Paper

• Writing & Printing Paper – The company’s white writing & printing paper is used in the fabrication of note books and writing material; the coloured paper is used in the fabrication of spiral notebooks, children’s colouring books, shade cards, wedding cards, coloured copier paper and bill books.
• Kraft Paper finds its application in the packaging Industry especially for making Corrugated Boxes / Cartons and for other packaging requirements. The special feature of its Kraft Paper is loaded bearing Capacity & tensile Strength which makes its most suitable for corrugated packing application.
• The Company also manufacture a special grade of Kraft Paper known as draw texture yarn (DTY)/ partial/ pre oriented yarn (POY) grade, which is used in the manufacturing of textile tubes and in wrapping of different types of yarn.

Ruchira Papers – Progress over the Years

• The Company initially set up Agro Waste Paper Mill for manufacturing of Kraft Paper and commenced its operations with a small 2310 TPA Capacity. Over the Years, the Company has undertaken several phases of expansion and the Production Capacity of Kraft Paper since then has increased from 2310 TPA to 52800 TPA.
• The company had set up 33000 TPA units for manufacturing of writing & printing paper adjoining to its existing unit in March, 2008.

Awards & Recognitions

• ISO 9001: 2015
• Udyog Ratna Award by Himachal Pradesh in 2005
• Appreciation Award from Himachal Pradesh Corrugated Box Manufactures Association in 2009
• Certificate of Excellence from INC 500 in 2013
• FSC Certificate (Forest Stewardship Council) from Rain Forest Alliance, New York, USA

Ruchira Papers – Promoters

The company was promoted by (1) Umesh Chander Garg, (2) Jatinder Singh, and (3) Subhash Chander Garg.

Listed On

The company’s shares are listed for trading on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) in India.

Stock Information

Share Holding Pattern

Ruchira Papers – Financials

Conclusion –

Ruchira Papers Limited has posted good set of numbers in Q3 – Fy 2017-18,

the company promoters have solid and steady stake since last 4 quarters, and

with increasing focus by government on education and general uptick in macro economy, CARE Rating expects Indian paper industry to witness a CAGR of 7% over the next 5 years to about 20 mn tones

Considering the techno-funda analysis, the above mentioned factors and sector outlook in mind; Ruchira Papers Limited looks good at Rs 168. FinBlab recommends investing in a stock keeping a long-term view in mind. (One can accumulate on decline also).

Also Read –

1) Finblab’s March – 18 Valuepick BALKRISHNA INDUSTRIES LIMITED (11.79% returns in just 1 month)

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