Ballarpur Industries Limited reels under debt pressure

Indian paper maker and flagship company of Avantha Group, Ballarpur Industries Limited may face heavy consequences owing to US duties.

Mar 24, 2017 10:03 IST India Infoline News Service

Indian paper maker and flagship company of Avantha Group, Ballarpur Industries Limited may face heavy consequences owing to US duties.
 
Ballarpur may default on its loans, which were availed of for modernising their production facilities in recent years. According to data available with the leading research houses, the company has about Rs 110 cr bonds due this year. The mature markets are turning towards internet and mobile phones for reading purposes, which has led to a decline in the demand for paper.
 
US President, Donald Trump’s protectionist stance can also adversely impact the paper exports to US. According to the market experts, the company is not being able to operate at its optimal capacity due to inadequate working capital.
 
In the year 2015, the imposition of duties by the US on Chinese and Indonesian companies, diverted sales of these companies to India. India has been reducing its paper import tariffs and the country witnessed double growth in its paper imports as compared to the one in 2010. Therefore, this was also not a good news for Ballarpur Industries Limited. 
 
Stock View:
 
Ballarpur Industries Ltd is currently trading at Rs 18.8, up by Rs 0.05 or 0.27% from its previous closing of Rs 18.75 on the BSE.
 
The scrip opened at Rs 18.75 and has touched a high and low of Rs 18.9 and Rs 18.6 respectively. So far 548034(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs 1229.06 crore.
 
The BSE group 'B' stock of face value Rs 2 has touched a 52 week high of Rs 20.9 on 16-Mar-2017 and a 52 week low of Rs 12.34 on 23-Mar-2016. Last one week high and low of the scrip stood at Rs 20.45 and Rs 18.5 respectively.
 
The promoters holding in the company stood at 49.43 % while Institutions and Non-Institutions held 22.95 % and 27.63 % respectively.
 
The stock is currently trading above its 50 DMA.

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