MEDIUM TERM BUY - TNPL

 TNPL  NSE : TNPL BSE : 531426  CMP : 130.00
Tamil Nadu Newsprint and Papers Limited manufactures newsprint, printing and writing paper. The Company also owns and operates a wind power farm, which is used primarily for captive consumption. Tamilnadu Newsprint manufactures Eco friendly papers, by adopting innovative technologies for sustainable development.


TNPL is a value buy in mid-cap space trading at a P/E of little less than 5. Pretty high dividend yield of almost 3.50% in the last 12 months. Liabilities are a little high, but is backed up by strong business model with solid revenue growth and consistent profits. Bottom-line growth of over 50% in FY11 is a surprise surge from its routine 20% growth in the last 5 years. NPM of 15% has grown from its routine 10 - 12% in the last 5 years. Buy, accumulate on dips and hold for long term growth.