Star Paper Mills Limited is an integrated Pulp and Paper Mill was established in 1938. Company Started its operation with 6000 MT par annum now having a capacity of more than 67875 MT. Company was originally promoted by Seth Baldeodass Bajoria, later it was taken over by Duncan Goenka Group in 1986. The company's core business is manufacturing of writing, printing and packaging paper, which are sold under the brand name 'Star'.

Company won several awards in the fields of Energy conservation, Safety and Environment Management. The company underwent various modernization schemes, as part of the revival package, since FY91. During FY96, equipment such as Rotary Lime Kiln for re-burning of lime sludge, causticizing plant, digesters, electrostatic precipitators etc. were installed and commissioned. During 1996-98, the company commissioned its state of the art chemical recovery boiler with an evaporator plant. In FY99, company installed two captive power generation sets of capacity aggregating to 8.2 MW, which helped in substantial reduction in power cost. Star Paper is an ISO 9001:2000 & ISO 14001:2004 Company.

Products & services:

Company produces a large range of Industrial, Packaging and Cultural Papers catering to almost all segments of the Consumers. Star has a distribution network throughout the Country besides exporting products to neighboring countries. Company Mills are located at Saharanpur
(U. P.), has 4 Paper Machines producing a large range of products catering to different segments and meeting varied requirements of the customers.

Company manufactures its products at international quality standards. It has an R&D lab to assure consistent quality of products. To achieve this, monitoring is done starting with Raw Material to the final product and all intermediate processes. Star's Research & Development unit is recognized by Govt. of India, Ministry of Science and Technology and is equipped to facilitate development work. R & D studies are carried out to reduce costs, process improvements, product development etc.

Valuation:

Company is planning to focus primarily on cost reduction and quality up gradation. Its R&D lab is in efforts to make new products for specialized markets. At current market price, stock is trading at only 5.14 P/E multiple of its FY2010 Estimated earnings. We recommend "Strong "BUY" on "Start paper" with medium to long-term investment prospective.