Star Paper Mills Ltd Stock Research

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Star Paper Mills Ltd Detail

Star Paper Mills Ltd is in portfolio of Anil Kumar Goel. He is one of the top investors in India. The company belongs to Paper sector. It is part of Duncan Goenka group.

As per the Company website it is integrated pulp and paper mill.It produces a wide range of Industrial, Packaging and Cultural Papers catering to almost all segments of the Consumers.

The mill is located in Saharanpur UP. Below are major segments in the Company along with application of paper manufactured by them.

  • Cultural Papers – Writing and Printing, Business Communication
  • Industrial Papers – Industrial Laminates, Cards, Packaging, Fire crackers
  • Other grades – Text books, Defense ammunition packaging and Banks

The Company has registered office in Kolkata and marketing office is present in New Delhi. Company mostly has presence in North and East India as of now and for future growth it will have to expand foot print in India.

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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.

Star Paper Mills Ltd Stock Performance

The stock performance can be divided into two parts one from year 2002 to 2014 and other from 2014 to till date. Company has literally under performed between 2002 to 2014 giving negative returns to investors.

It was trading in single digits in year 2014. I do not like Companies which does not have incremental growth. This one time news or sector driven performance is not sustainable. The stock under performs after the buzz settles down.

Star Paper Mills Ltd My Opinion

Star Paper Mills Ltd is a Paper Company. It has mixed performance over the years as shown by price graph above. The sector has few challenges and opportunities. It is a mixed bag type of sector.

Paper is seen as good alternative to replace more hazardous plastics. This will drive demand of paper products for packaging and other similar places. However Government is also focusing to eliminate papers from few areas by promoting digitization. It will eliminate paper demands.

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Both of these factors will decide future of paper industry in whole. This Company mainly has north India presence and need to compete with bigger players for expansion. I do not see any unique selling point in the Company so will not be tracking it. Note I have not invested in Paper industry as of this writing.

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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