Promotor unpledged 21 per cent of shares: This single-digit PE paper stock jumped from its long-term moving average; multibagger mid-cap returned 280 per cent!

The company has reduced debt and achieved strong profit growth with a 19.6 per cent CAGR over the past five years.

In a significant development today, Kuantum Papers witnessed a remarkable surge in its stock price by 2.98 per cent following the company's decision to release 1,84,05,207 equity shares with a face value of Re. 1/- each. These shares initially pledged as security for loans obtained by the company, have been successfully released from SBICAP Trustee Company Limited.

In Q2FY24, Kuantum Papers achieved the highest finished production for the quarter totalling 40,649 metric tons. The upgradation of the paper machine led to an increase in its capacity from 30 tons to 50 tons per day. In alignment with the vision of Kuantum for Earth, Kuantum Papers have undertaken the responsible initiative of planting clonal saplings on an additional 820 acres of farmers' land up until September 2023

Financial Highlights

In the second quarter, the company generated operating revenues of Rs 298 crores, which declined by 13 per cent year-on-year, operating profit reported at Rs 81 crores, resulting in operating profit margin of 27.03 per cent. The quarterly net profit amounted of Rs 43 crores reflecting a PAT margin of 14.3 per cent.

The company maintained operating revenue at Rs 611 crores on a half-yearly basis. operating profit saw a significant increase reaching Rs 190 crores marking a 19 per cent year-on-year growth. operating profit margin also expanded to 31 per cent and the net profit for the half year stood at Rs 108 crores with PAT margin of 17.64 per cent.

About Company

Kuantum Papers is in the business of production and marketing of wood-free writing and printing paper. The Co. is one of the largest fully integrated Agro-based paper manufacturers in India committed to manufacturing wood-free, high-quality maplitho, cream wove, copier and specialty paper.

The company has a market cap of Rs 1,521 crore with a PE of 6.61x and an ROE of 19.8 per cent. The stock gave multibagger returns of 289.09 per cent in 3 years. Investors should keep an eye on this Mid-Cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.