South India Paper Mills Ltd Detail
As per the Company website it i in business area of Paper production along with Packaging and Printing.The paper plant is located 150 km from Bangalore near Nanjangud in Karnataka state. The current capacity is about 200 MT/day.
It also generates power required for the factory to lessen the production run cost.It generates 8MW of power of which 4MW is exported as it is above the requirement of the plant. The Corporate office is located in Bangalore.
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.
South India Paper Mills Ltd Stock Performance
The Company has given more than 25 times return if we take the absolute price of 2002 and current price. The dividend yield is also good at current market price (more than 1%) which translates to 25% at 2002 price.
So investors have made money in this counter. There is no doubt about it. The stock prices have moved slowly over the years signifying improving year on year performance by the Company.
South India Paper Mills Ltd My Opinion
South India Paper Mills Ltd is a Paper Company. It is also in area of Printing and Packaging which are related to main sector Paper itself. The Company also produces power for internal consumption lowering the operating cost.
It has given healthy returns over the years. Paper as a sector will always be in demand. Nowadays people and Government are promoting paper less transaction and operations. The reason is to save trees used for paper production. This revolution may dampen the paper usage in some areas but there are areas where paper are still mandatory and are replacing more hazardous plastics.
The Company will at best have decent growth over the years. There are multiple players in this sector. The upsurge will occur if paper products will start replacing the plastics ones. Government is trying to eliminate usage of plastics with paper and also eliminating the use of paper using digitization.
Due to above reasons I have not invested in the sector nor am planning to do so.
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.