West Coast Paper Mills Ltd is one of the oldest and the largest producers of paper for printing, writing, and packaging in India.
The company has established itself as a leading manufacturer of high-quality paper suitable for printing, writing, and packaging purposes. Its paper products, known for their global quality standards, find application across a wide spectrum of industries including printing, writing, publishing, stationery, notebooks, and packaging.
In the fiscal year 2020, the company made a significant move by acquiring a substantial stake in Andhra Papers(72%).
Furthermore, the company operates a state-of-the-art manufacturing facility in Mysore, dedicated to the production of optical fiber cables.
🔹 Technicals:
▸ Price has been moving in 40% range for the last 1 year
▸ Price is above all key MAs, which is a positive sign
▸ Weekly breakout followed by a pause
▸ The price is near the previous ATH and 20 EMA. This creates a confluence zone.
▸ Good chance that it goes into consolidation in the current range before heading higher.
▸ A demand zone is present at 580-615. This is also coinciding with 50 EMA.
▸ 200 EMA is also coinciding with the demand zone, thereby creating a confluence zone.
🔸 Financials:
March 2023
▸ Sales: 4921 Cr
▸ Sales Growth: 45%
▸ Net Profit: 1087 Cr
▸ Net Profit Growth: 214%
▸ Debt/Reserves ratio: 9%
▸ OPM: 12%
March 2022
▸ Sales: 3378 Cr
▸ Sales Growth: 50%
▸ Net Profit: 346 Cr
▸ Net Profit Growth: 8650%
▸ Debt/Reserves ratio: 28%
▸ OPM: 19%
March 2021
▸ Sales: 2245 Cr
▸ Sales Growth: -10%
▸ Net Profit: -4 Cr
▸ Net Profit Growth: -101%
▸ Debt/Reserves ratio: 49%
▸ OPM: 33%
Rising sales with promising profit growth, OPM% and reducing debt makes the stock a good candidate from a positional perspective.
Disclaimer: I am NOT a SEBI Registered Analyst and the information provided here is NOT investment advice. This post is intended solely for educational purposes.