karur kcp packagings

Karur KCP Packaging Limited was promoted by Mr. KC Palanisamy 
in 1991. The company is having four business segments and has four 
divisions  – Paper Division located at Pondicherry, Paper Bags division 
also located at Pondicherry, Polypropylene Bags Division located at
Karur District and Flexible Intermediate Bulk Container Division
(FIBC Division)  also located at Karur District. The company came out 
with an IPO in 1995 and offered shares of Rs.10 each at a premium of 
Rs.30 per share.

The company’s customer list includes India Cement, Priyadarshini 
Cement, Madras Cement, Chettinad Cement and Rajshree Cements.
The company which was earlier catering primarily to needs of Cement 
Industry has of late diversified its activities to non cement sector and 
towards export market. The Paper Bag Division  has diversifies by
supplying bags to the other sectors namely Carbon Black, Tea and
Fertilizers. The company has also diversified into export of bags and 
its FIBC division located at Karur District is catering on export
market in Europe and U.S.A.
The fact that the company has the facility to manufacture Paper, 
Paper Bags, Polypropylene Bags and FIBC Bags gives flexibility to the 
company to adjust its production depending upon the demand for a 
particular product. The company is a one stop shop for packing 
requirements of any industrial sector.
Karur KCP Packkagings Ltd. reported unaudited earnings results for the third quarter and nine months ended December 31, 2010. For the quarter, the company reported net sales/income from operations of INR 903.388 million against INR 755.433 million for the same period a year ago. Profit from operations before other income, interest & exceptional items was INR 117.148 million against INR 135.537 million for the same period a year ago. Net profit was INR 25.451 million against net profit of INR 31.855 million for the same period a year ago. Basic and diluted EPS before and after extraordinary items was INR 2.55 against INR 3.19 for the same period a year ago. For the nine months, the company reported net sales/income from operations of INR 2,810.587 million against INR 2,343.144 million for the same period a year ago. Profit from operations before other income, interest & exceptional items was INR 321.995 million against INR 342.797 million for the same period a year ago. Net profit was INR 82.552 million against net profit of INR 66.333 million for the same period a year ago. Basic and diluted EPS before and after extraordinary items was INR 8.26 against INR 6.63 for the same period a year ago.
with a book value of 93.00 and a eps of 12.15 and a current PE ratio of just 3.37 this stocks look attractive.one can buy this stock at current levels and on dips for a long term targets of  80.00 and 105.00