Paper Products
During the last fortnight, managing director and CEO Suresh Gupta bought 31,236 shares of his company, thereby increasing his stake to 2.91 per cent from 1.73 per cent in December 2008. Other investors holding more than 1 per cent in the company are HDFC Trustee Company which has 4.29 per cent, ICICI Prudential Tax Plan with 2.07 per cent and Birla Sun Life Trustee with 1.01 per cent as on December 2008. The stock has outperformed the market with a one-year return of 13 per cent and it trades at price earnings of 7x and price to book of 0.94x. The stock has bounced back by 50 per cent from its 52-week lows of Rs 23.90 in October 2008. In the December quarter, revenues for the company declined 15 per cent to Rs 145 crore. Net profit also declined over 29 per cent to Rs 13 crore. The company’s woes may be partly over as the price of petro products, a vital input for the company, are low and FMCG demand is seeing an uptick this quarter.
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