Karnataka-based West Coast Paper is one of the most promising companies in the Indian paper sector. The company has been reporting robust performance since the past three quarters. It has a production capacity of 3.2 lakh TPA. The company is expanding its annual pulp-processing to 3 lakh TPA and paper-making capacity to 4 lakh TPA at a total investment of 1,400 crore.
The company's capacity addition and robust realisations have improved its profitability. A small portion of its revenues is contributed by manufacture of optical fibre cable. The company has started pulp manufacturing to cut cost of buying it from outside. Its operating margin is one of the best in the industry. Increased demand for paper, firm paper prices, cost savings and improved realisations will boost the company's earnings. It has management control in the country's leading newsprint maker Rama Newsprint through a 53% stake that strengthens its presence in the growth-oriented sector.
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