Buy Orient Paper for Rs 80 target: Elara Capital

In a chat with ET Now, Harendra Kumar, Head of Institution Broking and Global Research, Elara Capital, shares his views on the outlook of Orient Paper.

Paper stocks is one area which you like, especially Orient Paper, which is not doing a whole lot today but was in the limelight as far as traders are concerned just about a week ago.

It is more of a cement play. The laggard within the company has been the paper division, which has turned around at this point of time. In terms of profitability and efficiency, this is one of the most efficient players in the cement play and valuation. It is the cheapest. So, our target price is around Rs 80. There is a huge cushion in terms of valuation upside from hereon and things are turning around. The consumer durable segment of the company, that is, Orient PSPO, seems to be doing pretty okay at this point of time. It is a good cheap value pick in the cement space.