Broadly the global pulp cycle has come down significantly from 900$/tonne to now 500$/tonne. Industry believes that this is the bottom. However, as per recent interview the uncoated paper can still see a bit pressure for next 1-2 quarters.
Even if that to be considered and if you consider 23% as average margin (last year everyone knows it was an exceptional year). The company would generate sizable cash flow and available at very cheap valuation. Also, if you see currently it has delivered good number which honestly was a surprise as 30% was not an expected margin for this quarter.
Attaching link here of 2 interviews for your reference.
Discl: Invested
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