Mysore paper Mills

#1
Hi Guys
First let me congratulate on contributing well researched scrips for investment. I am new here and want the board to comment on the subject scrip. There is news doing rounds that ITC has shown interest in this compnay for their paper business. Karanataka govt. holds around 65% stake in this company and is thinking of divesting a portion to private players. Does naybody know abt this? CMP is Rs.15.56 and is locked in 5% upper circuit
Mainak
 
#4
I am myself wondering the authencity of the news though CNBC has announced it. ICICI direct is not allowing purchase of this share
 

tanewbie

Well-Known Member
#6
see what chamatcar has to say...............


Mysore Paper update....
Reportedly a wire media has covered Mysore Paper story now and ITC taking stake in the co was the buzzword. It is now predominantly said that ITC is believed to be a front-runner for this stake. It is believed that ITC is looking for a possible synergy of its cardboard business. Mysore Paper Mills has a capacity of 30,000 tpa of writing, printing and specialty material. It also has a capacity of 75,000 tpa of newsprint. It uses bagasse obtained from sugar mills as raw material for production of writing parts, WPP and has got manufacturing plant at Bhadravati in Karnataka. The company has been in the red for a while. In FY05, its net sales were at Rs 308.6 crore. The company had a net loss at Rs 9.4 crore. The accumulated losses stood at Rs 133 crore till March 2005.

Well In our report dated 12th May 2005 issued at Rs 13 had categorically said as under :

It is reportedly decided to sell the MPM to ITC as ITC is feeling heat with its paper capacities reaching 3.5 lac MT and still need more capacities and especially the raw mateiral. ITC seems to have keen interest in MPM due to the fact that MPM has huge natural resources in the form of 30000 hectares of forest though only 4500 hectares is under plantation. If coverage is extended to even 15000 hectares, ITC will be able to source the entire requirement of pulp for paper.

Investors can see the report of Mysore Paper by using the search engine on the home page. Our call is still wire as reported in our performance speak with 36 month target of Rs 100 and cost being Rs NIL. We would not suggest buying fresh but those who hold it should continue to hold.