HDFC Securities has reiterated add rating on Tamil Nadu Newsprint and Papers (TNPL) in the long term with a target price of Rs 215.5. The stock rose 2.17% to Rs 194.85 on Monday while the BSE
Sensex closed 163.68 points up at 37,145.45.
Company Financials
For the quarter ended 30-06-2019, the company has reported standalone sales of Rs 944.47 crore, down -9.14 % from last quarter sales of Rs 1039.44 crore and up 3.09 % from last year same quarter sales of Rs 916.13 crore. The company has reported net profit after tax of Rs 77.10 crore in latest quarter.
Investment Rationale
Customs duty and anti-dumping duty have led to better realisations, while better bagasse availability is a relief said the brokerage. Water crisis in Tamil Nadu can recur in future, which might affect paper production, the brokerage said.