Mysore Paper & Petronet Lng

Mysore Paper (Rs.10.80) - Founded in 1936, Mysore Paper Mills has its paper manufacturing plant at Bhadravati in Karnataka, a captive plantation and a sugar factory. The paper sector is doing well in view of firm prices and investors can look for investment in this company with a long-term view as a turnaround is expected over the next 18 months.
The company is into two products with paper contributing around 86% of sales and sugar contributing the balance 14%.
It has Rs.350 cr. for modernization plans of the paper mill and Rs.120 cr. plan for the sugar mills.
Restructuring & Revival:
The government had appointed M/s. Price Waterhouse Coopers (PWC) as the Transaction Consultant for working out a Restructuring & Revival proposal and its report is under the consideration by the Government. PWC has also, interalia, proposed investments of the order of Rs.470 cr. to revive the company either by the Government or by induction of a strategic partner.
Captive Forestry:
The Forest Wing has harvested captive plantations raised in Forest lands, Non-forest lands and K.P.C areas over an extent of 3071 hectares and a 178126 MT of pulpwood was supplied to the mills, which is the highest quantity supplied so far in a year since 1991-92 when the Mill started receiving pulpwood from the captive source. It has accumulated carbon credits by its operations.
With the expected revival package by the introduction of strategic investor and with paper prices remaining firm, its stock is likely to become good turnout story over long run. At the current price of Rs.11, there is virtually no downside risk. Investors can accumulate this stock on dips.
risk factor- IT IS Z GROUP STOCK.

PETRONET LNG
We recommend a buy in Petronet LNG at current market price for a medium-term prospective. From the charts of Petronet LNG, we note that the stock had steep decline in a short span of less than two weeks from its all-time high of Rs 121 (recorded on January 4) to a low of Rs 56 (recorded on January 22). However, on January 22, the stock surged by 15 per cent along with the broader market. We also see that there is an increase in volume over the past three trading sessions.
The stock’s recent upward bounce has formed a bullish harami candlestick pattern, which is a short-term bullish reversal pattern. The daily momentum indicator is showing signs of recovery from the oversold region. The immediate support for the stock is at Rs 63 and the next support is at Rs 56 levels. We believe that the downside is limited in this stock. Taking into account the stock’s recent surge, which is accompanied by good volume and the fact that the momentum indicators are featuring in the oversold region, we expect the stock’s up move to continue further to the immediate resistance level of Rs 95 in the medium-term. The short-term investors can buy the stock while keeping the stop-loss at Rs 56.