PAPER PRODUCTS / SEQUENT SCIENTIFIC - UPDATES

PAPER PRODUCTS LTD


Paper products recommended @ Rs.61 ( Recommendation HERE) hits its life time high (adjusted to stock split)   today @ Rs.102 . Still recommending to HOLD this MNC stock for long term

SEQUENT SCIENTIFIC LTD

This stock initially recommended to Rs.138 and repeatedly requested to HOLD despite poor working results thereafter .Today stock hits its 52 week high @ Rs.235 .I believe company is now started the ground work to become a niche play in selected segments and recent exit from specialty chemical business and formation of new joint venture company with Shasun Pharma is only a beginning in this direction. After subscribing lot of shares through preferential offer in last two years,promoters recently acquired shares from open market too even at a price higher than Rs.200. Requesting to HOLD this stock with patience for long term.

You can access detailed report on this stock HERE

PAPER PRODUCTS LIMITED - BUY

FMCG Companies are evergreen favourites of Investors .It is mainly because of their ever growing business backed by strong brands ,wide market reach and good cash flow ..etc.But in many cases FMCG companies always commanding premium valuations and ruling at high P/E multiples .Proxies of FMCG companies are another better option to benefit from the growth of FMCG companies .Paper products is one such company  which supplying packaging materials for many of the top brands in India.PPL is a subsidiary of Finland based Huhtamaki Packaging Worldwide which is operating in more than 30 countries and one of the largest 10 packaging solution providors in the globe.Huhtamaki holding about 61 % stake in PPL through its holding company Huhtavefa BV.In India ,company commanding about 60 % of market share in premium flexible packaging  business and its client list includes all major players in FMCG sector like Britannia, Cadbury, Castrol, Coca-Cola, Dabur, Emami, Eveready, GSK, Godrej, Hindustan Unilever, ITC, Marico, Nestle, Pepsi, Perfetti, P&G, Tata Tea, TTK-LIG and Wipro..etc  In fact ,It is a one stop shop for FMCG companies for packaging needs and its products includes  Flexible Packaging, Specialized Cartons, Packaging Machines, Holographic Options, Gravure Cylinders, Polyethylene Films and Coated Materials, Shrink Sleeves, Heat Transfer Labels, Pressure Sensitive Labels, Metalized Paper and Wrap Around Labels ..etc.  In many sub sectors of FMCG , flexible packaging is  replacing conventional rigid or glass based packaging.Growing trend of processed food market and penetration of un tapped rural markets by personal care companies are expected to increase the use of flexible packaging going forward. Supported by one of the world leader as its parent, PPl will be the biggest beneficiary of this changing trend in India. Company  showing steady growth in the past and  distributing dividend in every year. In FY 2012-13 PPL reported a top line of Rs.900 Cr ,net profit of Rs.45 Cr and an EPS of Rs.7.20 . Company’s stock price is now trading around its 52 week low price .For the past few weeks PPL’s Indian promoter is continuously buying shares from open market.I think,this MNC stock is a good proxy to participate in  the  Indian consumption story without taking higher level of risk @ CMP Rs.61.

Link to Parent Company's website HERE  

Link to PPL website HERE