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Last Updated on: 17 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 533208 | NSE: EMAMIPAP

Emami Paper Mills Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 15, 2024, 3:25 pm

Market Cap 605 Cr.
Current Price 100.0
High / Low152/99.0
Stock P/E6.96
Book Value 134
Dividend Yield1.60 %
ROCE12.2 %
ROE17.1 %
Face Value 2.00
PEG Ratio0.12

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Emami Paper Mills Ltd

Competitors of Emami Paper Mills Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gratex Industries Ltd 6.98 Cr. 23.026.0/13.0116 11.60.00 %4.54 %3.18 % 10.0
Ganga Papers India Ltd 119 Cr. 110191/74.776.6 27.60.00 %6.93 %5.22 % 10.0
Encode Packaging India Ltd 4.35 Cr. 13.818.7/6.6562.1 10.40.00 %3.24 %3.65 % 10.0
Cella Space Ltd 32.2 Cr. 16.016.7/7.9034.6 10.30.00 %10.7 %% 10.0
Bandaram Pharma Packtech Ltd 51.9 Cr. 43.263.1/28.331.6 11.00.23 %9.10 %6.77 % 10.0
Industry Average2,972.35 Cr226.1947.96139.520.83%26.26%12.72%6.60

All Competitor Stocks of Emami Paper Mills Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales314411429441519569598612565533519437494
Expenses269344348374448474494547531514485385413
Operating Profit446881677195104653419335281
OPM %14%16%19%15%14%17%17%11%6%4%6%12%16%
Other Income274001-60011001
Interest23212019232016141618191716
Depreciation18181818182116171717141213
Profit before tax51024431314872352-1622253
Tax %42%54%27%25%25%24%25%28%27%27%25%26%25%
Net Profit3473223233754251-1111639
EPS in Rs0.487.815.293.793.846.068.934.140.23-1.860.222.716.51

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales4955105475215391,1401,3561,5381,5151,2161,9582,3081,981
Expenses4324384764704911,0121,1951,3001,3071,0381,6442,0861,796
Operating Profit6472705147128161239209178314222185
OPM %13%14%13%10%9%11%12%16%14%15%16%10%9%
Other Income6238624114-2392-422
Interest3130191516708410711795836370
Depreciation27303227275664697372746857
Profit before tax1213231711262466-51031539361
Tax %28%11%20%30%-158%27%32%34%-131%50%25%26%
Net Profit812191228191644-10511156946
EPS in Rs1.371.913.082.014.613.152.717.27-1.738.4418.9811.437.58
Dividend Payout %44%31%20%30%13%19%44%16%0%0%8%14%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)50.00%58.33%-36.84%133.33%-32.14%-15.79%175.00%-122.73%610.00%125.49%-40.00%
Change in YoY Net Profit Growth (%)0.00%8.33%-95.18%170.18%-165.48%16.35%190.79%-297.73%732.73%-484.51%-165.49%

Emami Paper Mills Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:14%
5 Years:5%
3 Years:18%
TTM:-5%
Compounded Profit Growth
10 Years:18%
5 Years:14%
3 Years:86%
TTM:1005%
Stock Price CAGR
10 Years:8%
5 Years:7%
3 Years:-12%
1 Year:-23%
Return on Equity
10 Years:11%
5 Years:15%
3 Years:21%
Last Year:17%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 12:35 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital12121212121212121212121212
Reserves228306359376222231246207284397443518796
Borrowings4925988971,1351,3921,5301,5481,4011,1511,0291,102850640
Other Liabilities6681142134186191305298341340419334423
Total Liabilities7989971,4091,6581,8121,9642,1111,9181,7881,7791,9761,7141,871
Fixed Assets4374524481,1951,2201,2821,2971,2981,2251,1611,1481,0851,076
CWIP8916762055910310314104
Investments1111565644245449394576
Other Assets272377341458532618667595509538785574715
Total Assets7989971,4091,6581,8121,9642,1111,9181,7881,7791,9761,7141,871

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +889538-80-156927531324632932351
Cash from Investing Activity +-24-116-419-102-60-124-15731-7-34-24-10
Cash from Financing Activity +-121103071673039-123-335-246-307-9-336
Net Cash Flow5290-74-14-45-16-410-7-12-05

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow64.00-420.00-528.00-846.0046.00127.00160.00238.00208.00177.00313.00221.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days343131704860505060414048
Inventory Days9787136192117111133111108679169
Days Payable183083844236757688474633
Cash Conversion Cycle11387841781231351078680618484
Working Capital Days312724897782584474617970
ROCE %6%5%2%2%6%6%10%8%8%17%10%12%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters74.97%74.97%74.97%74.97%74.97%74.98%74.98%74.98%74.98%74.98%74.98%74.98%
FIIs0.50%0.50%0.50%0.50%0.50%0.52%0.52%0.52%0.52%0.50%0.50%0.50%
DIIs6.64%4.42%4.42%4.29%4.29%4.29%4.29%4.29%4.29%4.32%3.81%3.01%
Public17.89%20.11%20.11%20.24%20.24%20.21%20.21%20.22%20.21%20.20%20.71%21.51%
No. of Shareholders6,54014,98313,93114,11412,93612,77212,91113,26413,23913,07213,08714,409

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HSBC Small Cap Fund - Regular Plan1,855,5050.1724.231,855,5052024-11-130%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)13.1210.6218.178.43-1.73
Diluted EPS (Rs.)10.618.7114.458.40-1.73
Cash EPS (Rs.)23.9022.6031.1920.3610.26
Book Value[Excl.RevalReserv]/Share (Rs.)127.9575.2467.6948.9236.19
Book Value[Incl.RevalReserv]/Share (Rs.)127.9575.2467.6948.9236.19
Dividend / Share (Rs.)1.601.601.600.000.00
Revenue From Operations / Share (Rs.)329.56381.51323.59201.04250.47
PBDIT / Share (Rs.)39.6137.0452.1732.6635.10
PBIT / Share (Rs.)29.6525.8739.9620.7323.11
PBT / Share (Rs.)18.5415.3925.3516.96-0.74
Net Profit / Share (Rs.)13.9311.4318.988.44-1.73
PBDIT Margin (%)12.029.7116.1216.2414.01
PBIT Margin (%)8.996.7812.3410.319.22
PBT Margin (%)5.624.037.838.43-0.29
Net Profit Margin (%)4.222.995.864.19-0.68
Return on Networth / Equity (%)10.8815.1928.0317.25-4.77
Return on Capital Employeed (%)15.3213.8121.1311.9413.02
Return On Assets (%)4.913.506.452.85-0.54
Long Term Debt / Equity (X)0.290.600.841.372.15
Total Debt / Equity (X)0.781.891.922.384.27
Asset Turnover Ratio (%)1.081.231.100.650.75
Current Ratio (X)1.040.920.830.670.68
Quick Ratio (X)0.580.430.470.370.35
Inventory Turnover Ratio (X)4.155.856.172.902.89
Dividend Payout Ratio (NP) (%)0.0021.070.060.00-2.20
Dividend Payout Ratio (CP) (%)0.0010.660.030.000.37
Earning Retention Ratio (%)0.0078.9399.940.00102.20
Cash Earning Retention Ratio (%)0.0089.3499.970.0099.63
Interest Coverage Ratio (X)3.563.533.832.071.81
Interest Coverage Ratio (Post Tax) (X)2.252.092.470.771.14
Enterprise Value (Cr.)1291.591780.702018.061679.791541.38
EV / Net Operating Revenue (X)0.640.771.031.381.02
EV / EBITDA (X)5.397.956.398.507.26
MarketCap / Net Operating Revenue (X)0.340.290.500.610.20
Retention Ratios (%)0.0078.9299.930.00102.20
Price / BV (X)0.891.492.422.521.45
Price / Net Operating Revenue (X)0.340.290.500.610.20
EarningsYield0.120.100.110.06-0.03

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Emami Paper Mills Ltd as of November 17, 2024 is: 162.03

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 17, 2024, Emami Paper Mills Ltd is Undervalued by 62.03% compared to the current share price 100.00

Intrinsic Value of Emami Paper Mills Ltd as of November 17, 2024 is: 258.37

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 17, 2024, Emami Paper Mills Ltd is Undervalued by 158.37% compared to the current share price 100.00

Last 5 Year EPS CAGR: 59.46%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (201.62 cr) and profit (45.92 cr) over the years.
  1. The stock has a low average ROCE of 7.67%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 59.67, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 101.83, which may not be favorable.
  4. The company has higher borrowings (1,058.85) compared to reserves (354.85), which may suggest financial risk.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Emami Paper Mills Ltd:
    1. Net Profit Margin: 4.22%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 15.32% (Industry Average ROCE: 26.26%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 10.88% (Industry Average ROE: 12.72%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 2.25
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.58
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 6.96 (Industry average Stock P/E: 47.96)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.78
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Emami Paper Mills Ltd. is a Public Limited Listed company incorporated on 26/09/1981 and has its registered office in the State of West Bengal, India. Company’s Corporate Identification Number(CIN) is L21019WB1981PLC034161 and registration number is 034161. Currently Company is involved in the business activities of Manufacture of pulp, paper and paperboard. Company’s Total Operating Revenue is Rs. 1957.71 Cr. and Equity Capital is Rs. 12.10 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Paper & Paper Products687, Anandapur, 1st Floor, Kolkata West Bengal 700107investor.relations@emamipaper.com
http://www.emamipaper.in
Management
NamePosition Held
Mr. Aditya V AgarwalExecutive Chairman
Mr. Manish GoenkaVice Chairman
Mr. Vivek ChawlaWholeTime Director & CEO
Mr. P S PatwariNon Executive Director
Mrs. Richa AgarwalNon Executive Director
Mr. Sumit BanerjeeIndependent Director
Mr. Amit Kiran DebIndependent Director
Mrs. Mamta BinaniIndependent Director
Mr. Ranjit Kumar PachnandaIndependent Director
Mr. Niraj JalanIndependent Director

FAQ

What is the latest intrinsic value of Emami Paper Mills Ltd?

The latest intrinsic value of Emami Paper Mills Ltd as on 17 November 2024 is ₹162.03, which is 62.03% higher than the current market price of ₹100.00.

What is the Market Cap of Emami Paper Mills Ltd?

The Market Cap of Emami Paper Mills Ltd is 605 Cr..

What is the current Stock Price of Emami Paper Mills Ltd as on 17 November 2024?

The current stock price of Emami Paper Mills Ltd as on 17 November 2024 is ₹100.0.

What is the High / Low of Emami Paper Mills Ltd stocks in FY 2024?

In FY 2024, the High / Low of Emami Paper Mills Ltd stocks is 152/99.0.

What is the Stock P/E of Emami Paper Mills Ltd?

The Stock P/E of Emami Paper Mills Ltd is 6.96.

What is the Book Value of Emami Paper Mills Ltd?

The Book Value of Emami Paper Mills Ltd is 134.

What is the Dividend Yield of Emami Paper Mills Ltd?

The Dividend Yield of Emami Paper Mills Ltd is 1.60 %.

What is the ROCE of Emami Paper Mills Ltd?

The ROCE of Emami Paper Mills Ltd is 12.2 %.

What is the ROE of Emami Paper Mills Ltd?

The ROE of Emami Paper Mills Ltd is 17.1 %.

What is the Face Value of Emami Paper Mills Ltd?

The Face Value of Emami Paper Mills Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Emami Paper Mills Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE