Have been holding on to these shares for quite sometime, have been recommending investment in to these shares at varying rates. I myself bought some 1500 shares of TNPL in the mid 60 s range.
Today I saw a research report from Karvy recommenidng TNPL for a tagrget price of Rs 96 by 2011. What a turnaround in analysts's expectations or rather their courage in prediction
Justa year back, with the kind of figures which are quoted in the research report as possible financial results of this company, they would have recommended a price of atleast Rs 200.
They are targeting Rs 96 for an EPS of Rs 24 and PE of 4.
Once the interest rates come down, PE expectations will go up.
This Comapny , is a Rs 200 candidate as long as one can wait for a year. Their full expansion is likely to get completed by 2010.
In fact, I think , this Company could easily be a Rs 350 candidate once the entire benefot starts pouring in. Of course there is this small matter of , most of the Companies in Paper Industry going in for expansion. But India being India, additional capacity will get absorbed with higher local consumption and increased share in markets abroad. US & Europe are bringing down the shutters on all these Chemical consuming Companies
This Company will have cement clinker unit. power generation of close to 85 MW , IT development park of 60 acres
Seshasayee paper has got affected due to its dependence on Imported raw materials and rupee depreciation. This could settle down a bit , now that rupee is expected to settle at around Rs 45 to a USD
Link to the research report
http://news.moneycontrol.com/india/news/recommendations/buy-tamil-newsprint-targetrs-96-karvy/372330
Today I saw a research report from Karvy recommenidng TNPL for a tagrget price of Rs 96 by 2011. What a turnaround in analysts's expectations or rather their courage in prediction
Justa year back, with the kind of figures which are quoted in the research report as possible financial results of this company, they would have recommended a price of atleast Rs 200.
They are targeting Rs 96 for an EPS of Rs 24 and PE of 4.
Once the interest rates come down, PE expectations will go up.
This Comapny , is a Rs 200 candidate as long as one can wait for a year. Their full expansion is likely to get completed by 2010.
In fact, I think , this Company could easily be a Rs 350 candidate once the entire benefot starts pouring in. Of course there is this small matter of , most of the Companies in Paper Industry going in for expansion. But India being India, additional capacity will get absorbed with higher local consumption and increased share in markets abroad. US & Europe are bringing down the shutters on all these Chemical consuming Companies
This Company will have cement clinker unit. power generation of close to 85 MW , IT development park of 60 acres
Seshasayee paper has got affected due to its dependence on Imported raw materials and rupee depreciation. This could settle down a bit , now that rupee is expected to settle at around Rs 45 to a USD
Link to the research report
http://news.moneycontrol.com/india/news/recommendations/buy-tamil-newsprint-targetrs-96-karvy/372330
