Ruchira paper Stock Research

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Ruchira paper Detail

Ruchira paper is in portfolio of Dolly Khanna. He is one of the top investors in India. The company belongs to Paper sector.

As per the Company website it is engaged in the manufacturing of Kraft Paper and Writing & Printing Paper.Writing and Printing Paper is used for multiple purposes like printing and stationery etc. The company’s white writing & printing paper is used in the fabrication of note books and writing material.

The colored paper is used in the fabrication of spiral notebooks, wedding cards, shade cards, children’s coloring books, colored copier paper and bill books. Kraft Paper finds its application in the packaging Industry especially for making Corrugated Boxes / Cartons and for other packaging requirements. 

The Company is based in Himachal Pradesh. The plant and registered office both are located here only. The Kraft paper distribution network is mainly confined to North India and West India whereas Writing and Printing paper dealers are located in most of the states. Company may try to increase dealer networks for Kraft paper that would help increase revenue and Sales.

I have shared long term price performance chart of the Company below.As per Dow theory of technical analysis price performance over a period of time reflects Company state.

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Ruchira paper Stock Performance

The stock got listed in year 2006 at price 22 INR. After some IPO cooling off period stock started to have positive movement but then was impacted by global crisis. It has bad run from year 2009 to year 2012 making new lows in the process.

Since then the stock has recovered and slowly started to have positive movement quarter by quarter and year by year. The bull run also helped it cross 200 mark. This was excellent time for investors as they made huge money in short span of time.

The Company also pays healthy dividend of more than 2% at current market price. So investors who have invested in period 2013 are sitting at 10 times profit and earning 20% dividend which is excellent by any standard.

Ruchira paper My Opinion

Ruchira paper is a Paper Company. The Company has two separate division one is for Writing and Printing paper and second one is Kraft paper. Writing and Printing paper is business to consumer. Kraft paper is business to business.

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As of now there is growing demand of Kraft paper as well as Writing and printing paper. But Government is also looking ways to curb paper usage. Like the initiative for Digital tickets and all are one way to minimize paper usage.

Sectors like Education will continue to have paper demand. Though digitalization is impacting paper usage in those areas but is mostly restricted to Exams only. It will take considerable amount of time till Digitalization impacts paper usage in Schools. With growing focus on education and rising population the demand for papers will go up only.

Paper as a sector will continue to have demand in near future specially the FMCG sector of packaging and education sector. There will be some impact of digitalization on paper usage but not on these two sectors.

In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.

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