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Star Paper, an integrated pulp and paper manufacturer, has been buzzing on the bourses, with a 20% increase over the week.
Star Paper, an integrated pulp and paper manufacturer, has been buzzing on the bourses, with a 20% increase over the week. Star Paper has a presence in both, industrial and virgin craft paper segments. The company plans a Rs 85 crore investment to increase capacity production from 71,350 to 75,000 tpa. The company also wants to invest in a 5 mw multi fuel boiler which will enable it to use cheaper fuel.
Star Paper's profits were down to Rs 3.8 crores from Rs 4.9 crores for Q1FY06, and the EPS was down to Rs 2.45 from Rs 3.16, for the same period.
The profits of the company dipped, as its major machines were shutdown for renovation, as part of capacity expansion. However, Chairman of Star Paper, GP Goenka says,"We don't expect the shutdown to affect us badly. With the capacity increase, we expect to achieve last year's production in just 10 months." The company also claims that the steep increase in raw material cost and rising fuel prices have not been responsible for the drop in margins.
Star Paper is also looking at expanding its capacity to 200,000 tonnes. And the exact modalities for the same are being decided. The company is looking at both green field and brown field expansion options.
The company has a positive outlook and expects to generate Rs 41 crores, this year.
May 23 2013, 10:43
- in MARKET OUTLOOK
May 23 2013, 09:33
- in Technicals