CRISIL Research has come out with its report on Rainbow Papers. According to the research firm, the company is expected to commence commercial production at its new capacity for value-added paper products by Q3FY13-end.
CRISIL Research has come out with its report on Rainbow Papers . According to the research firm, the company is expected to commence commercial production at its new capacity for value-added paper products by Q3FY13-end.
Rainbow’s Q2FY13 results were broadly in line with CRISIL Research’s expectations. Higher trading activity resulted in revenues increasing by 91.3% y-o-y to Rs 2,167 mn. Revenues from manufacturing declined 1.6% y-o-y to Rs 1,077 mn. Higher other expenses resulted in EBITDA margin from manufacturing to decline to 20.4% compared to 22.2% in Q2FY12. Adjusted PAT increased 65.9% y-o-y to Rs 166 mn. The commissioning of the captive 20 MW power plant has been completed. Accordingly, we expect Rainbow to commence commercial production at its new capacity for value-added paper products by Q3FY13-end. We expect Rainbow to benefit from the production of highervalue products from the new capacity. We maintain the fundamental grade of 3/5.
Low offtake risk for incremental capacity
Commissioning of power plant completed
Issue of warrants
Valuations: Current market price has downside
Disclaimer: This report (Report) has been commissioned by the Company/Investor/Exchange and prepared by CRISIL. The report is based on data publicly available or from sources considered reliable by CRISIL (Data). However, CRISIL does not guarantee the accuracy, adequacy or completeness of the Data / Report and is not responsible for any errors or omissions or for the results obtained from the use of Data / Report. Opinions expressed herein are CRISIL's opinions as on the date of this Report. The Data / Report are subject to change without any prior notice. Nothing in this Report constitutes investment, legal, accounting or tax advice or any solicitation, whatsoever. The Report is not a recommendation to buy / sell or hold any securities of the Company. CRISIL especially states that it has no financial liability, whatsoever, to the subscribers / users of this Report. This Report is for the personal information of the authorized recipient only. This Report should not be reproduced or redistributed or communicated directly or indirectly in any form to any other person or published or copied in whole or in part especially outside India, for any purpose.
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