We believe that a) the company’s focus on increasing farm forestry to fulfill itsraw material requirements will help in reducing raw material costs and improve margins, b) capacity expansion at Gujarat will help the company to gain market share and c) ramping up of Sirpur unit in 2HFY20 will augur well for the company. Going ahead, we believe, lower pulp prices will be beneficial for the industry as the company imports mechanical pulp for its packaging board segment, but subdued demand and higher imports can weigh on prices. Besides this, end user demand is likely to foresee a growth in 2HFY20. Based on discussion with management, being in a capital intensive industry and having huge accumulated MAT credit, the company is not planning to move into new tax regime. Accordingly, we are re-instating our tax rates from 25.6% to 34.3%. Based on our revised estimates, we have downgraded our earnings estimates from Rs. 4.9bn and Rs. 5 bn to Rs. 4.3 bn and Rs. 4.3 bn for FY20/21E. At our revised estimates, the stock is trading at 5.3/5.3X FY 20/21E earnings, which is at discount to its last 4 years historical multiple of 6X. We maintain our BUY rating on the stock with the revised target price of Rs. 167 (earlier Rs. 190), as valuing at 7x FY21E.