Satia Industries secures Rs 96.50 crore worth of multiple orders; Is it in your portfolio?

Satia Industries Limited, one of the biggest and completely integrated wood and agro-based paper manufacturers in India, has made a significant announcement regarding orders received by the company.

As detailed in the official report, Satia Industries Limited has secured significant contracts valued at Rs 96.50 crore for the immediate supply of paper used in printing textbooks in Orissa, Himachal Pradesh, and West Bengal. These contracts underscore the confidence buyers have in Satia’s ability to meet the increasing demand for writing and printing paper driven by the New Education Policy (NEP).

Commenting on the order wins, R K Bhandari, Joint Managing Director of Satia Industries, said, “These multiple order wins reflect our long-standing association with important customers, and we thank them for placing their trust in the quality and commitment of Satia Industries to deliver high volumes promptly. This is crucial for ensuring textbooks reach students before the new academic year begins. Orders from textbook boards also provide revenue visibility to the company at attractive prices. Such orders typically yield higher operating margins compared to the open market.

Today, the shares of the company began trading at Rs 135.85 and reached intraday highs and lows of Rs 142.50 and Rs 135.80, respectively. As of the time of writing this article, the stock is trading at a price of Rs 136.70 on the BSE. This represents a 0.66% increase, or Rs 0.90 higher than the previous day’s closing price of Rs 135.80 per share.

The market capitalisation of the company is just Rs 1367 crore. Additionally, the stock has delivered a return of 22% within a month and 40% over the last two years. However, the stock’s long-term performance has not been very impressive, having generated only a 16% return in the past year.

If we examine the company’s financials, the annual revenue experienced a substantial increase of 15.38%, rising from Rs 417 crore to Rs 481 crore. The operating profit of the company stands at Rs 149 crore, accompanied by an operating profit margin of 31%.

Furthermore, the net profit of the company jumped by 2.8 times, increasing from Rs 30 crore to Rs 84 crore in the last quarter, while the EPS grew by 179%, rising from Rs 3.02 to Rs 8.42 per share.

The company’s return on capital employed (ROCE) and return on equity (ROE) are reported as 20.7% and 30%, respectively.

Investors must keep this stock on their radar.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.