Thanks for writing, and sorry for late reply as I’m not so active on internet now a days!
Management has a track record of skipping con-calls, doing so in difficult time is definitely a yellow flag. may be they are shying away in this situation where other paper companies(Plant based) are doing great.
Few months back they did provide business update and now credit rating agency provided enough data to satisfy me regarding how the business is developing.
As they have not stored enough agri raw material for newly commissioned plants, they are using waste paper at present, which is a costly alternative. I have heard now waste paper prices have moderated.
New pulp plant commissioning is due in Sep 2022, so their dependability on waste paper will go down and margin’s will improve.
Agri residue prices are only going up, so for this quarter also I’m expecting margin’s in the range of 17-19% only.
Increasing revenue is not an issue for them, so we can see increased revenue in this qtr.
I expect things to improve only after harvesting season in Punjab, so they can procure and store enough agri raw material for both new & old plants, that is going to be March-April-May of 2023.
Not expecting much in Sep22 qtr results, things will only improve from hereon.
One more thing to note, gov. seems very serious on NEP, if it materialize in next 2-3 years, Satia will be big beneficiary.
Happy investing!!!
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