As expected, EBITDA margins returned to 13% and stock price is rightfully down 42% from peak.
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Is this a sensible decision or DIWORSIFICATION?
Views are welcome.
dr.vikas
Company has received rating update from CRISIL.
The other interesting thing is recent Promoter buying
Just sharing.
Recently entered and so Biased.
dr.vikas
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Sharing the latest Annual report.
https://www.bseindia.com/xml-data/corpfiling/AttachLive/2acbb917-730c-4db6-949d-50699a9d46aa.pdf
Not invested. Just tracking.
dr.vikas
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I couldn’t find answers of the questions asked by the investor in this video (starting time stamp 20:15 minutes) . if anyone has , kindly share here
Pudumjee Paper Products: Strategic Q&A Summary
Q: What is the growth plan for the next 5 years while the new plant is being built?
A: Management is focusing on three levers: (1) Filling the remaining 14% capacity gap at the Pune plant, (2) Aggressively scaling the high-margin Hygiene Division (Greenlime), and (3) Shifting the product mix toward premium Specialty Papers (Medical/Food-grade) to increase revenue per tonne without needing more volume.
Q: What are the details and IRR of the new Greenfield project?
A: Located in Mahad, the project involves a ₹1,350 crore investment to add 68,000 MTPA of capacity. While a specific IRR wasn’t fixed publicly, the project is benchmarked against the 10-12% CAGR of the specialty paper industry and is supported by state government incentives and lower operational costs.
Q: Does Pudumjee own the “Greenlime” brand?
A: Yes. Greenlime is the flagship brand of PPPL’s Hygiene Products Division. It targets the “Away-from-Home” market (hotels, airports, offices) and is a key driver for margin expansion, recently showing ~20% YoY growth.
Q: Why did the company spend ₹72 crore on a residential property after exiting real estate?
A: Management provided three core reasons:
Corporate Use: Housing for senior management and technical experts to aid talent retention.
Treasury Management: Utilizing surplus cash (₹230+ crore) for capital appreciation rather than low-yield bank deposits.
Asset Class: They clarified they are investors/users, not developers. They have no plans to return to the real estate development business.
Q: How is the company protecting its margins right now?
A: By commissioning a 15.4 MWac Solar Power Plant to cover 50% of energy needs and focusing on being debt-free to minimize interest costs during the 5-year construction phase of the new plant.
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