Pledge reduced drastically from 85% to 9.1% . Yet there is no response from market or boarders
Is the company not conducting any concall for March quarter results?
EAC Gives Green Signal to Industry-1 Projects of Jindal Saw, Dinanath Allied Steel, Pakka Ltd., Karnikripa Power, Visa Steel, and Pioneer Aluminium Amid Compliance Gaps, Data Ambiguities, and Pending Litigations
08.06.2025 YouTube X LinkedIn
Sunita Mishra
The Ministry of Environment, Forest and Climate Change (MoEF&CC) has made public the minutes of the 4th meeting of the Expert Appraisal Committee (EAC) for Industry-1 sector, held between 27th and 28th May 2025. In the absence of Chairman Rajive Kumar, the meeting was presided over by Vice-Chairman Dr. Dipankar Shome. The meeting witnessed the appraisal of several proposals involving steel, power, and paper manufacturing industries, where recommendations for Environmental Clearance (EC) were granted in multiple cases. SO about Pakka it is given that -
The EAC also reviewed the expansion proposal of Pakka Limited in Ayodhya district, Uttar Pradesh, seeking to increase its paper and bleached pulp production capacities along with a significant boost in captive power generation from 8.8 MW to 23.8 MW. The MoM notes 25 litigation cases against the company, of which only nine have reportedly been resolved. While the Certified Consent to Operate (CTO) Compliance Report from the Uttar Pradesh Pollution Control Board indicated full compliance, the proximity of two schoolsâYash Vidya Mandir at 0.06 km and Primary School Parakhan at 0.27 kmâwas noted without any assessment of impact or details on whether these institutions predate the plantâs operations that began in 1983. Nevertheless, the EAC granted recommendation for EC.
Source - Enviro Annotations - EIA
Now the company has given two notices
- For concall for Q4 results
- For Board meeting to finalize FY25 results
The notice for no.2 says the upcoming meeting will be in continuation of another board meeting held in May month. Why the company was not able to finalize itâs FY25 results in one meeting? And why it needs another month to arrange the second meeting?
Something looks not right here.
Observations: Frequent resignations of KMP and independent directors, deferment of concals, management not walking the talk, no financial tie up for CAPEX being undertaken, Shifting of Sales and CAPEX target with no clear visibility from management, management exaggerating future projections without any ground work.
All above are red flags for me and hence exited all position recently.
So, now Concall notice given for both March and June quarters together.
Jagdish Hira, MD fired.
Net loss shown in Q1 '26
Here goes one more resignation. Something serious seems to be cooking inside.
Disclosure: Exited in June 25
Are there any listed competitors to Pakka - i.e. in the sustainable paper/packaging/cutlery space ?
Q1 concall
Some straightforward questions asked by investors about product development, questioning their R&D.
To me, it seems there are no flexible product ready yet. It seems company will produce only commodity-grade papers. MD himself said to manufacture two-layer packaging instead of flexible.
I believe the Bankers lending for Jagriti project are appraising the loan keeping in mind the traditional paper manufacturing capabilities of the company only.
I donât think Guatemala project will get funding and start running till they prove their flexible products.
Can someone update of the expansion which has been taken in Q1 (April-June 2025) ? What kind of revenues it can incrementally generate this year?
Thanks in advance.
Disc: invested (tracking position)
Revenue will be generated only after commissioning and as on date they even do not have full financial tie up of the project. They are stucked midway because of which Jagdish seems to have left the Company. The management has grandiose plans but implementation and planning is zero.
https://www.bseindia.com/xml-data/corpfiling/AttachHis/fd026009-7e88-4104-aef1-729f70de16ef.pdf
So, the management seems to be coming to senses now by abandoning Guatemala project for the time being, and just focusing on India now. The proposed expansion looked too-big-to-achieve from the first moment.
So, now how do we evaluate this company? Just like another paper company since the big sustainability part has been curbed for the moment?
Look I canât make sense of why you need bridge financing.Either you didnât planned the project well or your project got delayed.
Itâs just a paper producer a cyclical sector . When cycle troughs margins compressed and you are just barely profitable. In that case how are you going to pay EMI.
Kind of loan they have taken and kind of trough the sector is thereâs slight probability that company will end up in NCLT, I am assigning very small probability.
Seriously your indian capex is not finished yet app ko central America main invest karna hai. Again not making sense to me.
Best years of the company were when cycle was at peak and we donât know when we will see that kind of peak. Last peak was so high that it made paper executive so crazy that too much new capacity came online worldwide.
My observation just after hearing confrence call and looking at screener balance sheet so i might have missed large details.
Can anyone guide me how to view this development. Ved krishna behaves like he care a lot about the minority shareholders. In recent concalls, he said that he is thinking about infusing capital at a higher price since he thought they are very undervalued. But it seems like they are only buying at 110.
Again, when Jagdeep hira left , he said he have some health issues and all. But recently I found that he joined Kuantum Papers.
Seems like they are not at all trustworthy.
Any views is appreciated. Thanks.
f61526bc-34ae-4940-a87d-8a9a71a84b1c.pdf (601.0 KB)
management is not trust worthy⌠exited long time back