SANGAL PAPERS - BOOK PROFIT

I have recommended a BUY on SANGAL PAPERS at Rs.17/-  on 11th  May 2010 .(YOU CAN READ THE OLD REPORT HERE ) After three months,now it is quoting around Rs.30/  - an appreciation of  more than 80 %. Requesting profit booking at current level

SANGAL PAPERS

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

Meerut in UP.Though this company is small in size,

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.