Mehraboon Irani of Nirmal Bang Securities told CNBC-TV18, "Paper is one sector which I started liking. The dynamics of the industry has changed a little bit. What has happened is the biggest player, Ballarpur Industries' three units have closed." "JK Paper Industry sources states that it is making a strong bet for one of the plants. That plant will be in coating paper. I personally like the sector and I like the company called Ruchira Papers. The best return on equity (ROE), the cleanest balance sheet, writing and printing paper, they have increased the capacity," he said. "I am expecting earnings to be around Rs 12 in the current year and Rs 15 in 2016-2017. At Rs 15, even if I had to give it a valuation of just 9 or 10 times I see this stock at around Rs 135-150 which should come in the next one or two quarters. Present price Rs 95-96, I think a return of more than 50 percent coming in two quarters. So, I think Ruchira Papers would be the best bet followed by JK Paper."
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