Tamil Nadu Newsprint And Papers Ltd. share price target

TNPL reported topline growth of ~27.3% yoy in Q4 with reported net sales at `1017crs. vs. `799crs. in the corresponding quarter, last year. This quarter saw the company come back from the plant shutdown with capacity utilisations up at peak levels (100%+ for paper & 85%+ in the paper board segment. It has been a tough year for the company with the plant shutdown due to lack of water availability. With a stoppage of production at paper machine 2 between April 2017 & July 2017 the company lost out of 46,041 MT of paper production (i.e. ~11.5% of its total paper capacity). For FY18, the company registered a net sales growth of ~4.8% with sales...

The EBITDA from operations for Q1FY18 stood at `31crs, which translates to an ~83% YO-Y de-growth from Q1FY17 (`180 crs). The EBITDA margins from operations for Q1FY18 stood at 5.5% vs. 23.8% in Q1FY17. Interest cost stood at `63.2crs vs. `64.6crs. in the corresponding quarter, last year and `68.5 crs. in Q4. Depreciation stood at `54.4crs vs. `46.4crs increased by 17.2% yoy,...

We remain positive on the stock based on the long term demand outlook for the Indian paper industry. This is expected to keep the realizations of the PWP segment on an uptend in the industry. Though TNPL has experienced severe water shortage since March 2017 which affected the production of paper and packaging board and resulted in the shutdown of one of its paper plant, the company has resumed operation in the same plant from late July 2017 and has got back to the normal production of pulp, paper and packaging board. However, the impact of plant shutdown in PWP segment will likely result in lower production in Q1 as well. In the...

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Tamil Nadu Newsprint and Papers Limited (TNPL) was established by the Government of Tami Nadu during early eighties to produce Newsprint and Printing & Writing Paper using bagasse, a sugarcane residue, as primary raw material. Presently, the company is the largest exporter and second largest producer of printing and writing paper in the country. It caters to the needs of multifunctional printing processes like sheet-fed, web offset, and digital printers. The product range of the company includes Ultra White Maplitho, Elegant Maplitho, Hi-Tech Maplitho,...

Aggressive Capex on Multi-layered Paper board: Rs 15 bn capex on multi-layered paper board with capacity of 2 Lakh tonnes which is estimated to come on stream at the beginning of FY17E and is expected to boost the topline but expected low capacity utilization, high depreciation and interest costs are expected to put pressure on bottomline. New capacities from other players that are likely to be commissioned in FY16E could weaken the net realizations.

Limited (TNPL) is amongst the larger bagasse based paper manufacturers in the world. The company has over the years shifted its focus from low margin newsprint to writing and printing paper. TNPL among the larger players in the intensely cost-competitive paper industry has a market share of ~5%. TNPL operates three paper machines with a total capacity of 0.4 mtpa. TNPL's plant is located near sources of its...

Large industry players including West Coast Paper Mills and Andhra Paper Mills ramped up their capacity. These mills along with TNPL Background: Tamil Nadu Newsprint and Paper Limited (TNPL) is amongst the larger bagasse based paper manufacturers in the world. The company has over the years shifted its focus from low margin newsprint to writing and printing paper. TNPL among the larger players in the intensely cost-competitive...