YASH PAPERS LTD (516030) - GROWING BEYOND BOUNDARIES

Today I am expressing my views on  one Paper & paper related product stock

YASH PAPERS  LTD (516030)

Yash Papers (located in Faizabad, India) is synonymous with machine-glazed varieties of  paper. Company brand revolves around the manufacture of the best wrapping grades of  papers in India. The Company manufactures MG wrapping papers in both  brown and white varieties.

Established in 1981, by entrepreneur-promoter KK  Jhunjhunwala - with an installed capacity of 1940 MT per annum in 1983, Yash  Papers started production of low grammage kraft grades. Once this first paper  machine became stable, additional capacity of about 2000 MTPA was created on  this machine.

In the year 1991, the Company set up its Paper  Machine II, with a capacity of up to 6000 MTPA, taking the overall capacity to  10,000 MTPA. This machine also specialized in low grammage kraft varieties.  This new machine, along with the enhanced capacity of the old one, helped to  create dominance over the low grammage kraft market for the Company.

In the year 1995, Yash Papers set up its own 2.5 MW  Power Plant, with an Extraction-cum-Condensation Turbine. This was a  revolutionary step for a mill of its size at that time. This lower  cost of power gave it an added advantage over  other mills, and further helped brand Yash to become established in the market.  At the same time, the Company set up further capacity enhancements to its Paper  Machine II, and boosted total production to 16,000 MTPA.

In 2007, Yash Papers, grew to more than double of its  capacity, by installing a totally new integrated plant, setting up a pulp mill,  producing 130 TPD, Paper Machine III, to produce bleached MG grades of papers  with a total capacity of 70 TPD, a chemical recovery unit, and a 6 MW Power  Plant. This plant is running at full capacity from 2008. 

At the present time, Yash Papers has grown into the  largest manufacturer of wrapping grades in India, with a present installed capacity of 39,100 MT per  annum. Yash Papers practices a singular discipline, focus on specialty products  and quality and has a culture of ploughing back surpluses into additional  capacity.

The consistent feature of our business strategy has  been value-addition. Yash paper invested periodically in the manufacture of specialized  grades – a distinctive preference for the value approach over a volume one.

This preference for the value-approach is reflected  in the Company’s product mix - hard tissue, wrapping grades, packaging, and  stationery grades. These varieties are used in specialised downstream  applications like soap wrapping, food wrapping, pharmaceutical covers,  interleaving sheets, laminating sheets, paper bag, bidi wrapping, gum tape,  notebook covering paper, PE coating in mattress, tube light packaging among  others.

So even as Company  based in India, products of Yash Papers find loyal customers in countries  across the globe.

PRODUCTS

Company manufactures mainly 3 Types of Paper products.

1. PULP

2. MOULDED PRODUCT - CHUCK

3. PAPER

1. PULP

Yash Papers  are a rare company that provides an agri-residue pulp. Company's pulp is mostly made of sugar cane waste (bagasse) and sometimes wheat straw. Yash provide pulp in both bleached and unbleached varieties. An important aspect of the product is that 95% of the cooking chemicals used to manufacture the pulp are recovered by Company's conventional chemical recovery cycle making the pulp even more environmentally friendly.

Bleached Agro Pulp & Un bleached pulp

 FEATURES: 

- Fully renewable resources

- 100% biodegradable

- Available in wet / dry form

- Consistent quality

- Food grade

USES: 

- Paper making

- Tableware / moulded products

- Packaging mould

- Replacement of Styrofoam

- Growth media for Mushroom cultivations

2. MOULDED PRODUCT - CHUCK

All moulded products are made from Bagasse, the waste fibre left-over after juice is extracted from sugarcane stalk. Bagasse is a very good fibre for pulp, because of its high tensile strength and good fibre length. This means simply put, bagasse pulp makes products lightweight for ease in handling, flexible to protect from damage, and strong to prevent spillage.

Yash make own pulp from locally sourced bagasse to ensure the highest quality and safety standards.

Company’s product range focuses on the food industry — compostable disposables for food service, and egg trays for food storage and transportation.

In this segment Company manufactures Plates,Bowl,Containers,Lids & Trays. Brand name is Chuck.

3. PAPER

In this segment Company Produces Bleached , Un bleached and Coloured papers.

MAJOR CUSTOMERS

Company has major customers across industries. Following are few major customers.

Company Website : Clickhere

CHUCK Website : Clickhere

Company shares are trading in BSE. Promoter holding in the company is 40.07%.

Company posted 44.4 Cr top line with over 16% operating margin & Net profit is 1.66 Cr in the Dec qtr.

Stock is trading  low PE as compared to industry PE of 24.5

Stock is trading at Rs 38.

As the company mainly engaged in the business of paper products, nowadays there is a huge demand for Company’s products mainly in the segments of molded product CHUCK. As the Plastics are nowadays are replaced with Paper bags will be a Huge positive for the stock. This will be a Multibagger for Investors in a days to come.

NOTE : THE ABOVE IS NOT A RESEARCH REPORT NOR A RECOMMENDATION  BUT INFORMATION AS AVAILABLE ON PUBLIC DOMAIN. 

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”