Please refer to important disclosures at the end of this report
1
Tamil Nadu Newsprint and Papers Limited (TNPL) was established by the
Government of Tami Nadu to produce Newsprint and Printing & Writing Pape
r
using bagasse, a sugarcane residue, as primary raw material. The Company has
emerged as the largest bagasse based Paper Mill in the world consuming about
one million tonnes of bagasse every year. TNPL has implemented several cost
saving measures to keep the cost at the optimum level. Continuous focus on
process improvement, machine and labour productivity and cost control
measures have made the company the least - cost producer of paper in the
country. India is considered as the fastest growing market in the paper sector in
the world. With consistent growth in demand, there is a good potential fo
r
capacity addition and fresh investments in the Industry. The company has been
maintaining a healthy dividend payout of 23.20%. The company has reported
consistent performance of ROE of 15%+ for the last 3 years and also a stead
y
increase in its Profit growth of 40%+ CAGR over the last 3 years. Hence Buy.
BUY
CMP `334
Stock Info
Sector
Beta 1.2
Bloomberg Code
Shareholding Pattern (%)
Promoters 35.3
MF / Banks / Indian Fls 31.4
FII / NRIs / OCBs 11.6
Indian Public / Others 21.7
Abs. (%) 3m 1yr 3yr
Sensex 6.1 10.1 43.2
T N Newsprint 27.3 90.6 271.5
TNNP@IN
Nifty 8,745
Reuters Code TNNP.BO
Face Value (
`
)10
BSE Sensex 28,293
52 Week High / Low 348/178
Avg. Daily Volume 46,633
Paper & Paper Products
Market Cap (
`
cr) 2,346
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
Tamil Nadu Newsprint & Papers
Others | Paper & Paper Products
September 29, 2016
T N Newsprint & Papers | Paper & Paper Products
September 29, 2016
2
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement T N Newsprint & Papers
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)