Joined: 29/Mar/2007
Location: India
Online Status: Offline
Posts: 4243
Posted: 17/Jul/2009 at 4:06pm
I bought a small quantity of West Coast Paper instead of BILT. Reasons -
- It has got a really cool name.
- No raw material volatility issues because they have license to cut down trees in Karnataka, and they have a factory right next to a river (so no water problems).
- Steady increase in sales & profits in the recent past - no hiccups in the middle. Closed FY09 with net sales of Rs. 620 crores and a net profit of Rs. 90 crores.
- Marketcap of Rs. 300 crores, P/E of 3.5, P/BV of 0.6 and dividend yield of 6%.
- Owns a part of Rama Newsprint (current mcap Rs. 90 cr)
I bought a small quantity of West Coast Paper instead of BILT. Reasons -
- It has got a really cool name.
- No raw material volatility issues because they have license to cut down trees in Karnataka, and they have a factory right next to a river (so no water problems).
- Steady increase in sales & profits in the recent past - no hiccups in the middle. Closed FY09 with net sales of Rs. 620 crores and a net profit of Rs. 90 crores.
- Marketcap of Rs. 300 crores, P/E of 3.5, P/BV of 0.6 and dividend yield of 6%.
- Owns a part of Rama Newsprint (current mcap Rs. 90 cr)
Except Debt, everything else looks good for West Coast Paper Mills. Still, I want to hear from Vivek why he gives preference to BILT than Deccan or WCPM.
I already have West Coast. BILT I had exited during the buyback and the run-up prior to the buyback. Now, I am gradually trying to get back what I had sold out.
BILT, in its current form, now more of a consumer company rather than paper manufacturing company. West Coast is a very static kind of a company. Better than west Coast, I would rather bet with a Seshasayee or a JK paper.
Joined: 29/Dec/2007
Location: India
Online Status: Offline
Posts: 1283
Posted: 20/Jul/2009 at 12:32pm
We might eventually see BILT being an end to end upstream and downstream player in the paper business...lot has to do with the branding that gautam thapar has planned for bilt ..right from planning to open exlcusive bilt stores upto sponsoring some major golfing events in India. Valuing the brand IMO will be tricky unlike the other players like WCPM or star or sheshasayee
You cannot post new topics in this forum You cannot reply to topics in this forum You cannot delete your posts in this forum You cannot edit your posts in this forum You cannot create polls in this forum You cannot vote in polls in this forum
Here's why members would love to be a part of theequitydesk.com
Equity Desk focuses on why to buy shares and invest in share rather than what to buy.
Live discussion forum wherein members can discuss the current Indian share Market trend,
BSE Sensex or the Nifty Index.
Have huge cache of information on Indian and World Share Market.
Analysis of Indian stock market, Global events, Investing insights, portfolio
management strategies and thoughts,
Meet investors from round the globe check their investing strategies share experiences and learn
for their experiences on stocks and shares, evaluate opinions on investing in India.
Active Topics
Memberlist
Calendar
Search
Help
Register
Login
IP Logged
