Friday, 1 September 2017

YASH PAPERS : Have all traits of a multibagger

YASH PAPERS –
Company came out of CDR and have invested 54 crores in the new plant
They have launched a moulded paper product segment where they are making various sizes Plates,Bowl,Containers,Lids & Trays under Brand name is Chuck.
Its made from bagasse a by product after sugarcane crushing in sugar plants.
Company’s plant is in UP and they get ample baggase at almost free.
Company already supply paper carry bags and paper trays to MacDonald’s, Kfc , pizza hut ,Waco and yum.
They have big order in hand from us market for Paper tray products and have started supplying to the US markets .
CHUCK is a high margin product which will improve overall margin of the company.
Fy 18 they are expected to do 225 crores sales and 14 -17 crore pat.
So We are getting the company at 5 PE of fy 18 Earnings.
Promoter have allotted 29.3 lakhs warrants in July 2017 Which is 9% of equity So the promoter shareholding will go substantially up .

Recently there is institutional interest in the company and some share placement may be done soon.

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