Stock market analyst Rajesh Gupta of Fairwealth Securities has maintained 'buy' rating on Rainbow Papers Ltd stock with target that lies between Rs 56.2-57.2.

According to analyst, the interested investors can buy the stock around Rs 54.5 with strict stop loss of Rs 53.5.

The stock of the company, on August 16, closed at Rs 49.78 on the Bombay Stock Exchange (BSE).

The share price has seen a 52-week high of Rs 59 and a low of Rs 17.98 on BSE.

Rainbow Papers has announced a growth of 85.5% y-o-y in its net PAT (profit after tax) for the thre month period ended June 30, 2010.

The net PAT of the country's leading paper manufacturing company that uses the environmentally-friendly process of recycling of waste paper, stood at Rs 96.1 million.

The total sales of the company surged by 93.83 % on y-o-y basis at Rs 974.6 million.

Besides, the company is eyeing to boost its overall capacitance to 305,000 MT from 180,000 MT by launching a completely automatic Voith-make paper facility.

The products list of Rainbow Papers Limited comprises newsprint paper, writing paper, printing paper, coated paper & board, duplex boards in addition to color paper and board, crepe paper and poster paper.