Paper prices are ruling steady and it is expected to do
so in near future. So there is a strong chance of
re-rating in the price of the paper manufacturers
from current level. Sangal paper is a small un-noticed
player in paper segment. Company’s plant is located at
in UP.Though this company is small in size, Meerut
it is present in almost all varities like Newsprint,
writing ,colour paper..etc.For the full year ended
March 2009 ,company posted a turnover of Rs.58 crore
and an EPS of Rs.9/- .Company is expected to post
an EPS of Rs.13/- for the full year ending March 2010
on its tiny equity base of 1.3 crore. At CMP of Rs.17/-
it is trading at a P/E multiple close to just 1 .
Nothing to lose.