Sree Sakthi Paper Mills Ltd - 532701

Name of Company	Sree Sakthi Paper Mills Ltd
BSE Code	532701
NSE Code	Not Listed
ICICI Code
Established
My Take	Like
Headquarters	Cochin
Promoters	Sree Kailas group (S Sivathanu Pillai, son - S. Giridhar)
Story
Sector	Paper
Sub-sector
Website	http://www.sreekailas.com/Paper_Division.php
Positives	Huge dividend yields at 5% or more at current price (assuming Rs. 1.50 or more). Revenue has increased almost 3 times in the lasst 5 years - 57 Cr in FY06 to 143 Cr in FY10. Net profit has increased a little more than 2 times - 4.64 Cr in FY10 compared to 1.71 Cr in FY06.
Negatives	2-3% NPM's. It has 20 Cr of reserves and 30 Cr of loans. The interest cost of about 4-5 Cr for the past 3 years has kept the net profits lower.
Peers
News
Price @ blogged	30 (18-Apr-2011)
Cost of company	49 Cr market cap for a 4.64 Cr FY10 net profit makes it more than 10 times. It has around 20 Cr of reserves and 30 Cr debt. Can buy for big dividend, but buy lower when risk is lower, say less than 5 times PE.