Orient Paper & Industries Q3FY19: On a solid growth path; Buy

SKP Research | Jan. 31, 2019, 12:03 p.m.

Valuation

We have valued the stock on SOTP basis valuing Orient’s core paper business at 6x EV/EBITDA (lowering it from 7x in the previous quarter) of FY21E and investments (except Brajrajnagar land) at Rs 7/-share. We recommend a BUYon the stock with a target price of Rs 56/- in 18 months, although the long term story looks even better. Any monetization of Brajrajnagar land will trigger an upside potential of profitability and stock price.



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