I think due to the paper upcycle, results are good. If you zoom out and take an objective look, majority of the revenues and profits are from Paper Pulp which as you all know is a deep cyclical sector.
The main question and hopes ride on the Molded product segment (Chuck). Now despite the impressive 50% ish revenue growth YOY, growth has slowed QoQ. Plus the losses. Lastly, the hard fact is that Chuck is 12-13% of the revenues and it has grown on a small base.
It looks to be seen what happens with the revenue growth and profitability of Chuck. With zomato deal in place and other tractions. upcoming quarters should show some clarity. Until then it remains a “waste ka best” story and a commodity paper stock, which is technically trading above the current industry average PE of 6.5ish.
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