Ruchira papers break out1. Buy or Sell at your own risk
2. Don't risk more than 1%-2% of your capital as stop loss
3. Position Size formula: - Stop Loss/(Buy Price-Initial Stop Loss Price)
4. Sell on initial stop loss hit or close below daily supertrend (for short term traders) or close below weekly supertrend (for long term investors)
5. Some other ways to sell stocks can be
a. 25% or 50% up in three weeks or less
b. Largest weekly price spread
c. Exhaustion gaps
d. Heavy daily volume without further upside
e. Largest one day price drop
after a quarterly sales and profit growth of 27% and 1365% respectively and TTM sales growth of 48% and TTM profit growth of 730%, NSE:RUCHIRA gave a high volume break out today from an 8-month long consolidation zone. Buy with a stop around rupees 92.
Other fundamental:
1. According to stock market experts, paper mills are least affected by recent global triggers like Ukraine-Russia war, soaring crude oil price and other commodity prices ascending to its multi-month highs. In fact, unlock theme has fueled demand for papers as schools and other educational institutions are reopening now. Recently pulp and waste paper prices in the international markets have gone up that may give margin benefits to the paper mills in upcoming quarters.
2. The Company has a manufacturing unit in Sirmaur, Himachal Pradesh. The current installed capacity stands at 400 TPD. This includes 250 tonnes per day of Kraft Paper and 150 tonnes per day of writing and printing paper. It also has a 8.1 MW captive power plant at its Kala Amb facility which helps source 100% of the power requirement of writing & printing paper from within.
3. The Co launched white copier paper and bleached kraft, which is used for the manufacture of carry bags with quality equivalent to the imported grade of bleached kraft in the market. The newly launched product constituted 12% of the revenues from writing and printing papers in FY21.
4. The Co is focusing on repayment of its long-term borrowings in FY22 and derisking of the balance sheet.
5. Stock is trading at 0.98 times its book value.
6. Promoter holding has increased by 1.36% over last quarter.
7. Debt to equity at 0.22 (less than 1 is good), Interest Coverage at 6.84 (greater than 3 is good), Current ratio at 1. 63% (greater than 1.5 is good).
8. Sector leader in terms of one month and six months' return.
