Fundamental Analysis of Ruchira Papers Ltd

About the Company - Ruchira Papers Ltd

Ruchira Papers Ltd. is a Public Limited Listed company incorporated on 08/12/1980 and has its registered office in the State of Himachal Pradesh, India. Company’s Corporate Identification Number(CIN) is L21012HP1980PLC004336 and registration number is 004336. Currently Company is involved in the business activities of Manufacture of paper and paper products. Company’s Total Operating Revenue is Rs. 612.86 Cr. and Equity Capital is Rs. 25.20 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Paper & Paper ProductsTrilokpur Road, Kala Amb, Sirmour District Himachal Pradesh 173030investor@ruchirapapers.com
http://www.ruchirapapers.com
Management
NamePosition Held
Mr. Subhash Chander GargCo-Chairman & WholeTime Director
Mr. Jatinder SinghChairman & Wholetime Director
Mr. Umesh Chander GargManaging Director
Mr. Dalbir SinghIndependent Director
Mr. Surinder Kumar GuptaIndependent Director
Mr. Swatantar Kumar DewanIndependent Director
Mr. Vipin GuptaExecutive Director & CFO
Mr. Avtar SinghIndependent Director
Mrs. Suhasini YadavIndependent Director
Ms. Ruchica Garg KumarDirector - Marketing
Mr. Deepan GargDirector - Technical
Mr. Daljeet Singh MandhanDirector - Commercial
Mr. Kapil GuptaIndependent Director
Mr. Ashwani Kumar AgarwaIndependent Director

Ruchira Papers Ltd. Share Price Update

Share PriceValue
Today₹131.05
Previous Day₹132.35

Basic Stock Data of Ruchira Papers Ltd

Last Updated: June 26, 2024, 4:18 am

Market Cap 400 Cr.
Current Price 134
High / Low164/91.1
Stock P/E5.85
Book Value 138
Dividend Yield3.76 %
ROCE24.0 %
ROE19.7 %
Face Value 10.0
PEG Ratio0.42

Competitors of Ruchira Papers Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Magnum Ventures Ltd 341 Cr. 60.477.8/24.010.7 1090.00 %6.06 %10.6 % 10.0
Balkrishna Paper Mills Ltd 42.0 Cr. 39.156.6/23.0 1760.00 %44.5 %% 10.0
Pudumjee Paper Products Ltd 654 Cr. 68.984.0/34.09.13 44.50.72 %18.4 %15.4 % 1.00
Malu Paper Mills Ltd 81.4 Cr. 47.769.9/25.3 3.850.00 %4.25 %88.5 % 10.0
Kuantum Papers Ltd 1,625 Cr. 186226/1127.56 1201.61 %22.0 %19.8 % 1.00
Industry Average548.68 Cr80.425.4890.670.47%19.04%26.86%6.40

Ruchira Papers Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales99117141126148148191199221202181169170
Expenses95112125115134135164178189175151135151
Operating Profit451711141326203128303419
OPM %4%5%12%9%9%9%14%10%14%14%16%20%11%
Other Income0010001010001
Interest2112221221111
Depreciation3433444444444
Profit before tax-111369822162723252914
Tax %44%23%23%25%25%26%26%26%25%25%25%25%25%
Net Profit-101057616122017192211
EPS in Rs-0.280.153.701.692.472.125.824.046.675.786.327.293.55

Last Updated: June 1, 2024, 11:08 pm

Ruchira Papers Ltd Quarterly Chart

Ruchira Papers Ltd Profit & Loss

Last Updated: May 27, 2024, 1:07 am

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales283296318345361416447494481415613803678
Expenses242245270306313352373412437390549694582
Operating Profit405149394764748244256410996
OPM %14%17%15%11%13%15%17%17%9%6%10%14%14%
Other Income1221114121122
Interest20171410788876654
Depreciation11111210101112131414141516
Profit before tax1125252032465862256459178
Tax %34%33%40%37%39%30%35%36%-9%19%26%25%
Net Profit816151319323840275336858
EPS in Rs3.076.666.195.197.8813.1615.3915.0710.251.8711.9522.6619.58
Dividend Payout %0%14%18%23%17%16%13%14%0%49%15%22%

Ruchira Papers Ltd Profit & Loss Yearly Chart

Ruchira Papers Ltd Growth

Compounded Sales Growth
10 Years:8%
5 Years:6%
3 Years:17%
TTM:-18%
Compounded Profit Growth
10 Years:12%
5 Years:4%
3 Years:115%
TTM:-27%
Stock Price CAGR
10 Years:21%
5 Years:10%
3 Years:19%
1 Year:23%
Return on Equity
10 Years:14%
5 Years:12%
3 Years:15%
Last Year:12%

Last Updated: January 12, 2024, 6:10 am

Ruchira Papers Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital22222222222222242424253030
Reserves4861748398130169220240246281351382
Borrowings1241069371736188756876664229
Other Liabilities53616770748786926968878687
Total Liabilities248251256247267300366411401414460508528
Fixed Assets162156152148173178228231234235251296291
CWIP-00-01-03335302746
Investments-0-0-0-0-0-0-0-0-0-0-0-0-0
Other Assets86951039894119136177162149182208232
Total Assets248251256247267300366411401414460508528

Ruchira Papers Ltd Reserves and Borrowings Chart

Ruchira Papers Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 274331384033472338343562
Cash from Investing Activity -0-4-6-5-32-19-59-15-18-38-26-36
Cash from Financing Activity -27-37-27-34-9-1411-8-203-9-26
Net Cash Flow-03-1-1-00-000-1-00

Ruchira Papers Ltd Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days525036353839474857413844
Inventory Days6874716476921028692785682
Days Payable363634242725222027211011
Cash Conversion Cycle84887375881051261141229983114
Working Capital Days5053464361658388918172102
ROCE %22%21%17%21%27%27%24%10%4%14%24%

Ruchira Papers Ltd Financial Efficiency Indicators Chart

Ruchira Papers Ltd Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters64.07%64.07%65.43%65.43%66.69%67.88%68.67%68.67%68.67%68.67%68.67%68.67%
FIIs0.59%0.58%0.63%0.56%0.32%0.83%0.86%0.91%0.68%1.12%0.87%0.85%
Public35.34%35.35%33.94%34.01%32.99%31.29%30.47%30.41%30.64%30.19%30.45%30.48%
No. of Shareholders21,36420,90219,90720,84120,83228,22529,00127,84727,27328,04627,56428,613

Ruchira Papers Ltd Shareholding Pattern Chart

No. of Ruchira Papers Ltd Shareholders

This stock is not held by any mutual fund

Ruchira Papers Ltd ROCE Trend

Ruchira Papers Ltd EPS Trend

Ruchira Papers Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)22.6613.132.0611.2917.43
Diluted EPS (Rs.)22.6612.892.0611.2917.43
Cash EPS (Rs.)27.7818.867.7416.9421.99
Book Value[Excl.RevalReserv]/Share (Rs.)127.48122.83111.39109.09100.75
Book Value[Incl.RevalReserv]/Share (Rs.)127.48122.83111.39109.09100.75
Dividend / Share (Rs.)5.002.001.000.002.25
Revenue From Operations / Share (Rs.)268.96243.16171.29198.34203.69
PBDIT / Share (Rs.)37.1725.8210.6318.8034.64
PBIT / Share (Rs.)32.0620.094.9413.1529.24
PBT / Share (Rs.)30.3717.672.5510.3625.74
Net Profit / Share (Rs.)22.6613.132.0611.2916.59
PBDIT Margin (%)13.8210.616.209.4817.00
PBIT Margin (%)11.918.262.886.6214.35
PBT Margin (%)11.297.261.485.2212.63
Net Profit Margin (%)8.425.391.205.698.14
Return on Networth / Equity (%)17.7710.681.8410.3416.46
Return on Capital Employeed (%)22.8614.183.7410.4523.59
Return On Assets (%)13.307.191.206.829.78
Long Term Debt / Equity (X)0.000.030.050.020.05
Total Debt / Equity (X)0.110.180.230.220.24
Asset Turnover Ratio (%)1.661.401.021.181.27
Current Ratio (X)2.311.771.581.681.60
Quick Ratio (X)1.340.850.800.870.84
Inventory Turnover Ratio (X)6.295.373.804.004.08
Dividend Payout Ratio (NP) (%)8.027.320.0019.9312.53
Dividend Payout Ratio (CP) (%)6.545.100.0013.279.46
Earning Retention Ratio (%)91.9892.680.0080.0787.47
Cash Earning Retention Ratio (%)93.4694.900.0086.7390.54
Interest Coverage Ratio (X)22.0810.684.446.6510.37
Interest Coverage Ratio (Post Tax) (X)14.466.431.864.976.02
Enterprise Value (Cr.)320.26345.49216.15139.45314.54
EV / Net Operating Revenue (X)0.390.560.520.280.63
EV / EBITDA (X)2.895.318.393.063.74
MarketCap / Net Operating Revenue (X)0.340.470.360.170.51
Retention Ratios (%)91.9792.670.0080.0687.46
Price / BV (X)0.730.930.560.311.05
Price / Net Operating Revenue (X)0.340.470.360.170.51
EarningsYield0.240.110.030.330.15

Ruchira Papers Ltd Profitability Ratios (%)

Ruchira Papers Ltd Liquidity Ratios

Ruchira Papers Ltd Liquidity Ratios (%)

Ruchira Papers Ltd Interest Coverage Ratios (X)

Ruchira Papers Ltd Valuation Ratios

Fair Value

Fair Value: 165.02

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.

Undervalued: 23.15% compared to the current price 134

Intrinsic Value: 187.82

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 40.17% compared to the current price ₹134

Last 5 Year EPS CAGR: 13.82%

*Investments are subject to market risks

Strength and Weakness of Ruchira Papers Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 17.58%, which is a positive sign.
  2. The company has higher reserves (183.31 cr) compared to borrowings (74.77 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (457.69 cr) and profit (40.31 cr) over the years.
  1. The stock has a high average Working Capital Days of 69.58, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 97.58, which may not be favorable.

Should I Buy Ruchira Papers Ltd Share Now?

  • Considering all of the following key financial indicators, investors should conduct additional research before investing in Ruchira Papers Ltd:
    1. Net Profit Margin: 8.42%
      • 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: 22.86% (Industry Average ROCE: 23.22%)
      • 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. Interest Coverage Ratio (Post Tax): 14.46
      • 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.
    4. Quick Ratio: 1.34
      • 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.
    5. ✗ Stock P/E: 5.85 (Industry average Stock P/E: 3.24)
      • 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.
    6. ✓ Total Debt / Equity: 0.11
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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.