Fundamental Analysis
WEST COAST PAPER MILLS LTD.
Ticker : 500444
BUY : Rs 218.85
Target : Rs 242
West Coast Paper Mills is a premium brand in the paper industry, acknowledged both in India and abroad. Its product segments include writing, printing, business stationery, speciality, industrial, and packaging. On the standalone quarterly front, the company reported net sales of Rs 337.76 crore for Q3FY21, which is a decrease of 29.07 per cent from its net sales of Rs 476.20 crore reported for Q3FY20. The operating profit declined by 54.21 per cent to Rs 44.77 crore in Q3FY21 from Rs 97.77 crore posted in Q3FY20. The company incurred a net loss of Rs 8.07 crore in Q3FY21 as compared to the net profit of Rs 39.89 crore gained in Q3FY20.High usage, needs, and affordability in every sector are the main demand drivers for the paper industry. The company is expected to benefit from the industry's overall growth. Hence, we recommend BUY.