Current price is less than the intrinsic value

Intrinsic value

Stock has been generating better return on equity than bank FD

ROE vs FD rates

Dividend Returns

Good time to consider, as stock is not in overbought zone

Entry point

Stock not in ASM/GSM lists and not a lot of promoter holding is pledged

No Red Flags

Higher production and sales on the back of robust pent-up demand and improved net sales realisations have aided the company’s strong performance.

Seshasayee Paper’s net profit surpasses ₹100 cr for the second consecutive quarter

Revenue from operations surged to ₹556 crore from ₹334 crore

Seshasayee Paper and Boards Q3 net soars to ₹109 cr.

Seshasayee Paper & Boards consolidated net profit rises 1747.19% in the December 2022 quarter

Paper stocks are buzzing in trade, with small-cap names such as Satia Industries and Seshasayee Paper delivering strong Q2. Paper stock including JK Paper have risen between 3-6 percent in the day's trade. Strong performance was seen due to strong demand trends have been strong across schools and offices, strong realizations due to price hikes and impact of single use of plastic ban aided the revenue numbers. Satia Industries, Century Textile's paper segment and Seshasayee Paper's revenue increased between 37-146 percent on a year-on-year basis. Most paper companies won't take further price hike as per channel checks. JK Paper, Andhra Paper to declare Q2 results on November 2. 

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Why Are Paper Stocks Rallying In Trade?  | ET Now | Market News | Stock Market

Seshasayee Paper & Boards consolidated net profit rises 286.65% in the September 2022 quarter

Seshasayee Paper and Boards Limited is engaged in the business of manufacture and sale of printing and writing paper.

Seshasayee Paper and Boards to acquire assets of Servalakshmi Paper

Seshasayee Paper & Boards consolidated net profit rises 203.63% in the June 2022 quarter

Since June 30, shares of Seshasayee Paper and Boards jumped 7%, Andhra Paper gained 6.2%, Tamil Nadu Newsprint & Papers climbed 4.62% and Satia Industries advanced 4.62% on the BSE

Paper stocks in demand amid ban on certain single-use plastic items

Seshasayee Paper & Boards consolidated net profit declines 10.97% in the March 2022 quarter

Paper stocks rallied on expectation of strong earnings supported by robust growth in the packaging board segment and continued demand in the writing and printing paper segment.

Paper stocks in demand; JK Paper, Seshasayee Paper surge up to 14%

Seshasayee Paper & Boards consolidated net profit rises 29.89% in the December 2021 quarter

Seshasayee Paper and Boards Limited (SPB) is a holding company engaged in the manufacture of printing and writing papers.

Seshasayee Paper and Boards Ltd

Seshasayee Paper and Boards Ltd

Intrinsic value
Intrinsic value is the calculated value of the company and may differ from current stock price. If intrinsic value > current price, price increase is expected in the future to reduce the gap and vice-versa

ROE vs FD rates
Fixed Deposit rate is a virtually risk-free rate where the investor assumes almost no risk on their investment. If stock's long term average ROE is lower than this rate, investors are better off investing the amount in a FD

Dividend Returns
A dividend is the distribution of reward from a portion of company's earnings and is paid to its shareholders. Good dividend returns indicate good health and outlook for the company

Entry point
High demand for a stock increases its price. If the price is pushed up to a level which is not justified, then it's considered to be in the overbought zone, which is not a good time to buy the stock

News & Opinions

Seshasayee Paper’s net profit surpasses ₹100 cr for the second consecutive quarter

Seshasayee Paper and Boards Q3 net soars to ₹109 cr.

Seshasayee Paper & Boards consolidated net profit rises 1747.19% in the December 2022 quarter

News Video

Why Are Paper Stocks Rallying In Trade? | ET Now | Market News | Stock Market

Seshasayee Paper & Boards consolidated net profit rises 286.65% in the September 2022 quarter

Seshasayee Paper and Boards to acquire assets of Servalakshmi Paper

Seshasayee Paper & Boards consolidated net profit rises 203.63% in the June 2022 quarter

Seshasayee Paper and Boards Ltd

Intrinsic valueIntrinsic value is the calculated value of the company and may differ from current stock price. If intrinsic value > current price, price increase is expected in the future to reduce the gap and vice-versa

ROE vs FD ratesFixed Deposit rate is a virtually risk-free rate where the investor assumes almost no risk on their investment. If stock's long term average ROE is lower than this rate, investors are better off investing the amount in a FD

Dividend ReturnsA dividend is the distribution of reward from a portion of company's earnings and is paid to its shareholders. Good dividend returns indicate good health and outlook for the company

Entry pointHigh demand for a stock increases its price. If the price is pushed up to a level which is not justified, then it's considered to be in the overbought zone, which is not a good time to buy the stock

News & Opinions

Seshasayee Paper’s net profit surpasses ₹100 cr for the second consecutive quarter

Seshasayee Paper and Boards Q3 net soars to ₹109 cr.

Seshasayee Paper & Boards consolidated net profit rises 1747.19% in the December 2022 quarter

News Video

Why Are Paper Stocks Rallying In Trade? | ET Now | Market News | Stock Market

Seshasayee Paper & Boards consolidated net profit rises 286.65% in the September 2022 quarter

Seshasayee Paper and Boards to acquire assets of Servalakshmi Paper

Seshasayee Paper & Boards consolidated net profit rises 203.63% in the June 2022 quarter

Intrinsic value
Intrinsic value is the calculated value of the company and may differ from current stock price. If intrinsic value > current price, price increase is expected in the future to reduce the gap and vice-versa

ROE vs FD rates
Fixed Deposit rate is a virtually risk-free rate where the investor assumes almost no risk on their investment. If stock's long term average ROE is lower than this rate, investors are better off investing the amount in a FD

Dividend Returns
A dividend is the distribution of reward from a portion of company's earnings and is paid to its shareholders. Good dividend returns indicate good health and outlook for the company

Entry point
High demand for a stock increases its price. If the price is pushed up to a level which is not justified, then it's considered to be in the overbought zone, which is not a good time to buy the stock