During Monday’s morning trading session, the shares of a company operating in the Specialty Paper segment hit a 5 percent circuit at Rs. 160.15 on BSE, after the company announced a capacity expansion with an investment of Rs. 1,350 crores.
With a market cap of Rs. 1,471.3 crores, at 12:50 p.m., the shares of Pudumjee Paper Products Limited were trading in the green at Rs. 154.95, up by around 1.6 percent, as compared to its previous closing price of Rs. 152.55.
What’s the news
Pudumjee Paper Products Limited, as per recent regulatory filings with stock exchanges, has secured Consent to Establish from the Maharashtra Pollution Control Board for manufacturing proposed Specialty Paper grades at its Mahad facility.
The company currently operates with a production capacity of 75,000 metric tonnes (MT) per annum at its Pune facility, achieving ~86 percent capacity utilization, which translates to around 65,000 MT annually.
The proposed expansion at the Mahad unit aims to add a production capacity of 68,000 MT per annum, requiring an estimated investment of Rs. 1,350.09 crores.
Details regarding the mode of financing for this project will be finalized in due course, as per the filings. The primary objective of the Mahad expansion is to enhance the company’s Specialty Paper manufacturing capacity.
Financials
Pudumjee Paper Products reported a marginal growth in revenue from operations, experiencing a year-on-year increase of nearly 14 percent, rising from Rs. 195 crores in Q2 FY24 to Rs. 222 crores in Q2 FY25.
Similarly, the company’s net profit increased from Rs. 18 crores to Rs. 30 crores over the same period, representing a growth of around 66.7 percent YoY.
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Stock Performance
The stock has delivered multibagger returns of nearly 178 percent of returns in one year, while around 28.3 percent of positive returns in the last six months. Meanwhile, the shares of Pudumjee Paper Products have fallen
by around 27.6 percent in the last one month.
About the company
Pudumjee Paper Products Limited mainly belongs to the paper industry and operates in specialty paper segment for wrapping and food-grade packaging paper, household & sanitary paper, and allied products.
Its products serve diverse applications such as laminating bases, chocolate and toffee wrappers, glassine for food and soap packaging, melamine tableware base paper, decorative laminates, bible printing paper, vegetable parchment for dairy packaging, kraft paper for industrial uses, and tissue products like napkins and toilet rolls.
Written by Shivani Singh
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