Orient Paper & Industries Q2FY19: Growth catalysts in place; Buy

SKP Research | Nov. 6, 2018, 1 p.m.


We have valued the stock on SOTP basis valuing Orient’s core paper business at 7x EV/EBITDA of FY20E and investments (except Brajrajnagar land) at Rs 9/-share. We recommend a BUY on the stock with a target price of Rs 64/- in 15 months, although the long term story looks even better. Any monetization of Brajrajnagar land will trigger an upside potential of Orient Paper profitability and stock price.

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