why would someone continue holding satia compared to a company like JK paper? - My thesis for the same was that Satia is 1/6th the size of JK - thus has a headroom for growth as well as the fact that Satia was getting into the cutlery segment in which the company had initially guided that EBITDA would be 40% ++. However now it seems that the cutlery business is on an idefinite hold and Satia is not able to maintain margins like JK.
Another thing to take into account is the boom in paper prices which is cyclical and currently, we are pretty much in the uptrend of the cycle. If Satia is not able to maintain margins right now - how will it do well when paper prices eventually come down
Even interms of valuation JK is cheaper than satia still.
Subscribe To Our Free Newsletter |