Sree Sakthi Paper Mills Ltd. 100,000 TPA installed capacity to manufacture paper and paper boards, which caters to the domestic and export markets with over 40% exported to Iran, UAE, Bangladesh, Philippines, Sri Lanka etc. The company went public in 2006 to raise Rs.25 cr. for its expansion plans and is known to be the largest Kraft paper producer in South India.
It has an equity base of Rs.16.44 cr. and its share has a book value of Rs.21.50 per share. The promoters hold 52.41%, non-promoter corporate bodies hold 5.50% while the investing public holds 39.69% stake in the company.
For Q2FY10, it recorded net sales of Rs.34.51 cr. with net profit of Rs.1.23 cr. against net sales of Rs.36.54 cr. with net profit of Rs.1.06 cr. in Q2FY09. For H1FY10, it recorded net sales of Rs.67.31 cr. with net profit of Rs.2.26 cr. against net sales of Rs.70.87 cr. with net profit of Rs.2.24 cr. in H1FY09. The half-yearly EPS was Rs.1.38. The company has been paying regular dividends since listing and last year it paid 15% dividend. At current level, the dividend yield is around 7.7%.
Investors can buy this stock with a stop loss of Rs.17.50. On the upper side, the stock will zoom to Rs.26-28 levels in the medium-term.
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