Reviews

WEST COAST PAPER MILLS

Ticker : 500444
FV: Rs2
52-Week H/L: Rs414.55/225

We had recommended West Coast Paper Mills in volume no 35, issue no 03 (dated Nov 5, 2018) when the scrip was trading at Rs 399.15. Our recommendation was based on expansion and upgradation and positive scenario for the paper industry. Recently, Government of India imposed anti-dumping duty (ADD) on uncoated paper imported from Indonesia, Thailand and Singapore. The growing demand and increase in paper prices has helped the company to improve its margins and profitability. In Q2FY19, its revenue was up by 19.7 percent YoY to Rs 505 crore. EBITDA surged by 62.6 percent YoY to Rs 135 crore and EBITDA margin stood at 27 percent. PAT for the quarter jumped by 83.3 percent YoY to Rs 88 crore. Considering imposition of ADD and company's robust financials, we urge investors to HOLD the scrip. 

SELAN EXPLORATION TECHNOLOGY 

Ticker: 530075
FV: Rs10
52-Week H/L: Rs277.50/162.20

We had recommended Selan Exploration Technology in volume no 34, issue no 49 (dated Sept 24, 2018) when the scrip was trading at Rs 249.75. Our recommendation was based on the company's robust financial performance in Q1FY19 and attractive valuation. In Q2FY19, the company’s revenue grew by 43.1 percent YoY from Rs 17.1 crore to Rs 24.5 crore. EBITDA for the quarter surged by 139.1 percent YoY from Rs 5.7 crore to Rs 13.7 crore and EBITDA margin stood at 56.1 percent as against 33.5 percent in the corresponding quarter of last year. PAT jumped by 202.3 percent YoY to Rs 13.9 crore from Rs 4.6 crore. The continuous rise in crude oil prices has benefitted the company which has reflected in H1FY19 numbers. Thus, we urge investors to HOLD the scrip.