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TNPL recommends dividend of Rs. 6 - Dividend Yield @ 5.45%

Posted On : 2020-07-16 14:25:14( TIMEZONE : IST )

TNPL recommends dividend of Rs. 6 - Dividend Yield @ 5.45%

Tamil Nadu Newsprint and Papers Limited (TNPL), an enterprise promoted by Government of Tamil Nadu, manufactures paper products, paper board products and cement. The increased production capacity of 400,000 TPA of writing and printing papers has made TNPL as one of the largest bagasse - a residue of sugar cane, as primary raw material, in the world. TNPL Unit-II was designed to produce 200,000 MT per annum high grade Paper Board for usage in pharmaceutical, health care, food, cosmetics and other consumer product industries, in various GSM ranging from 170 to 450.

TNPL based on the concept of "Waste to wealth" commissioned a cement plant in January 2013 with an capacity of 600 tpd to manufacture high grade cement from mill waste materials viz., Lime sludge and fly ash. TNPL is the first mill in the paper industry to produce cement from these solid wastes. TNPL has enhanced the production capacity to 900 tpd by introducing a Pre-calciner and other balancing equipment in the existing Cement Plant.

The Board of Directors of the Company at its meeting held on June 30, 2020, have recommended dividend of Rs. 6/- per equity share for the financial year 2019-20, subject to the approval of the shareholders in the Annual General Meeting.

The current stock price is Rs. 110 and the final dividend yield works out to 5.45% at current market price. In BSE, the company's stock price hit a 52 week high of Rs. 215.40 (September 30, 2019) and low of Rs. 85 (April 3, 2020).

The company has reported net profit of Rs. 1.84 crore for the quarter ended March 31, 2020 (Q4FY20) as against net profit of Rs. 13.49 crore for the quarter ended March 31, 2019 (Q4FY19) and net profit of Rs. 29.51 crore during the quarter ended December 31, 2019 (Q3FY20). The EPS stood at Rs. 0.27 for Q4FY20 as compared to Rs. 4.26 for Q3FY20 and Rs. 1.95 for Q4FY19.

The company posted net profit of Rs. 130.03 crores for the year ended March 31, 2020 as compared to Rs. 94.39 crores for the year ended March 31, 2019. The EPS stood at Rs. 18.79 for FY2020 as against Rs. 13.64 for FY2019.

Paper production for the year ended 31 March 2020 was 392250 MT against 432572 MT in the previous year. Packaging Board production was 172776 MT against 176997 MT in the previous year.

The water availability at Mettur dam in Tamil Nadu should augur well for the company's operations.

Shares of TAMIL NADU NEWSPRINT & PAPERS LTD. was last trading in BSE at Rs.110.65 as compared to the previous close of Rs. 112.85. The total number of shares traded during the day was 28737 in over 662 trades.

The stock hit an intraday high of Rs. 114.9 and intraday low of 110.05. The net turnover during the day was Rs. 3231876.

Source : Equity Bulls