Tamil Nadu Newsprint and Papers (TNPL) - 531426

Name of Company	Tamil Nadu Newsprint and Papers (TNPL)
BSE Code	531426
NSE Code	TNPL
ICICI Code
Established
My Take	Like
Headquarters	Guindy, Chennai
Promoters	Tamil Nadu Government
Story	The factory is in Karur. This is a >1000 Cr revenue paper manufacturing company with a very good NPM.
Sector	Paper
Sub-sector	Paper mainly from Bagesse (sugarcane waste).
Website	http://www.tnpl.com/
Positives	35% Promoter shareholding by TN government. Huge holdings by LIC, GIC, etc. Regularly profitable company. regular dividend payer at around August of every year - yield at current prices would be greater than 1.75% assuming Rs. 2.50 minimum dividend.
Negatives	Slow growth in revenue and profits - 50% in 5 years. Huge interest costs are bringing margins down.
Peers	JK paper (biggest player in India), West Coast Paper, Ballarpur, AP Paper
News
Price @ blogged	140 (20-Apr-2011)
Cost of company	965 Cr for a 126 Cr FY10 NP makes it 7.65 times. For a company with 1362 Cr total debt and 735 Cr reserves, this seems slightly more than what it is worth. But as this is the 4th biggest paper manufacturer and one with 10-12% NPM, this is acceptable. Paper companies dont grow more than twice in ten years - So, understand that before you buy.