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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

Seshasayee Paper & Boards Ltd (SESHAPAPER): Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 15, 2024, 1:21 pm

Market Cap 1,829 Cr.
Current Price 290
High / Low383/280
Stock P/E9.56
Book Value 312
Dividend Yield1.72 %
ROCE20.1 %
ROE15.3 %
Face Value 2.00
PEG Ratio0.55

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

View Share Price Target for Seshasayee Paper & Boards Ltd (SESHAPAPER)

Competitors of Seshasayee Paper & Boards Ltd (SESHAPAPER)

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 Seshasayee Paper & Boards Ltd (SESHAPAPER)

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales328218332334471431523556573427362473539
Expenses294187292319392343383406416331273386472
Operating Profit34314015798814015015795898868
OPM %10%14%12%5%17%20%27%27%27%22%25%19%13%
Other Income56737513111013181517
Interest1111111110001
Depreciation10101010111212121011111111
Profit before tax2926368758114114815696969174
Tax %-119%25%24%25%24%25%24%25%24%25%24%24%23%
Net Profit6420276576010611211872736957
EPS in Rs10.093.154.360.968.989.5616.8517.6918.6611.3811.6110.949.01

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales8209981,0081,1081,1051,3261,1847821,3552,0831,8021,797
Expenses7169089018948981,0309176751,1891,5491,4621,505
Operating Profit10590107214207296267108166534340293
OPM %13%9%11%19%19%22%23%14%12%26%19%16%
Other Income534121525312624406365
Interest443732231414733323
Depreciation492929313234353841454444
Profit before tax16265017217627325693146525357311
Tax %-25%32%29%23%30%30%29%-15%24%25%24%
Net Profit201636132123192182106110396271236
EPS in Rs3.642.615.7120.9719.5430.4428.7916.8717.4462.7642.9337.43
Dividend Payout %25%31%17%10%15%13%13%14%14%9%11%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)125.00%266.67%-6.82%56.10%-5.21%-41.76%3.77%260.00%-31.57%
Change in YoY Net Profit Growth (%)0.00%141.67%-273.48%62.92%-61.31%-36.55%45.53%256.23%-291.57%

Seshasayee Paper & Boards Ltd (SESHAPAPER) has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 9 years from 2015-2016 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:%
5 Years:6%
3 Years:32%
TTM:-4%
Compounded Profit Growth
10 Years:%
5 Years:7%
3 Years:37%
TTM:-49%
Stock Price CAGR
10 Years:21%
5 Years:11%
3 Years:20%
1 Year:-12%
Return on Equity
10 Years:%
5 Years:16%
3 Years:18%
Last Year:15%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:42 pm

MonthMar 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital111313131313121212121212
Reserves3524014305927138811,0071,1311,2431,6231,8991,953
Borrowings43432930217114997108402182
Other Liabilities320380391343406446419367400443459402
Total Liabilities1,1181,1231,1351,1181,2811,4361,4481,5181,6602,0792,3912,449
Fixed Assets726661638650686685688747828809789776
CWIP21350412723313214203539
Investments11434793108107103152178197248292
Other Assets3794053993354606216265856401,0541,3191,342
Total Assets1,1181,1231,1351,1181,2811,4361,4481,5181,6602,0792,3912,449

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +209105112200225273165-7276329202
Cash from Investing Activity +-317-20-46-36-50-16-26-54-251-372-225
Cash from Financing Activity +176-104-66-154-51-89-124-31-22-22-19
Net Cash Flow68-2001012416815-913-66-42

Free Cash Flow

MonthMar 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-329.00-239.00-195.0043.0058.00199.00257.00100.00162.00534.00319.00

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 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days4445473535222538271724
Inventory Days1121169711514711018741387138170
Days Payable251194188168220211215311137134153
Cash Conversion Cycle-95-33-44-18-38-79-3140-232141
Working Capital Days32724-1-13-17126561430
ROCE %11%26%22%31%26%9%12%37%20%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters42.65%42.65%42.80%42.78%42.78%42.78%42.78%42.78%42.78%42.78%42.78%42.78%
FIIs10.95%10.96%10.71%10.98%12.04%12.73%12.73%12.86%12.86%12.98%12.97%13.01%
DIIs0.24%0.24%0.24%0.22%0.21%0.21%0.21%0.21%0.03%0.02%0.02%0.06%
Government14.27%14.27%14.27%14.27%14.27%14.27%14.27%14.27%14.27%14.27%14.27%14.27%
Public31.89%31.88%31.98%31.75%30.69%30.00%29.99%29.87%30.05%29.95%29.96%29.88%
No. of Shareholders17,31117,76418,59218,48219,46520,89720,46722,29625,68326,43625,87525,729

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)44.9665.7218.2717.6628.97
Diluted EPS (Rs.)44.9665.7218.2717.6628.97
Cash EPS (Rs.)50.1271.5223.7322.7533.19
Book Value[Excl.RevalReserv]/Share (Rs.)317.49271.65208.51189.82163.64
Book Value[Incl.RevalReserv]/Share (Rs.)317.49271.65208.51189.82163.64
Revenue From Operations / Share (Rs.)299.31345.98225.12129.91187.83
PBDIT / Share (Rs.)64.7893.5930.1120.9346.06
PBIT / Share (Rs.)57.4986.0723.3214.6840.50
PBT / Share (Rs.)57.1485.5422.8414.1939.41
Net Profit / Share (Rs.)42.8464.0016.9416.5027.63
NP After MI And SOA / Share (Rs.)44.9865.7518.2817.6728.98
PBDIT Margin (%)21.6427.0513.3716.1124.52
PBIT Margin (%)19.2024.8710.3511.2921.56
PBT Margin (%)19.0824.7210.1410.9220.98
Net Profit Margin (%)14.3118.497.5212.6914.71
NP After MI And SOA Margin (%)15.0219.008.1113.6015.43
Return on Networth / Equity (%)14.1624.208.769.3017.71
Return on Capital Employeed (%)16.6628.859.926.7920.80
Return On Assets (%)11.3219.046.627.0112.51
Long Term Debt / Equity (X)0.000.000.000.000.01
Total Debt / Equity (X)0.010.000.000.000.01
Asset Turnover Ratio (%)0.801.110.850.520.81
Current Ratio (X)3.343.032.422.592.57
Quick Ratio (X)2.422.181.911.551.85
Inventory Turnover Ratio (X)3.905.233.492.323.95
Dividend Payout Ratio (NP) (%)13.973.9814.3223.7113.80
Dividend Payout Ratio (CP) (%)12.023.5710.4417.5111.58
Earning Retention Ratio (%)86.0396.0285.6876.2986.20
Cash Earning Retention Ratio (%)87.9896.4389.5682.4988.42
Interest Coverage Ratio (X)182.22176.6263.1543.3042.15
Interest Coverage Ratio (Post Tax) (X)121.50121.7836.5435.1226.28
Enterprise Value (Cr.)1185.43924.66726.45767.26335.68
EV / Net Operating Revenue (X)0.650.440.530.980.28
EV / EBITDA (X)3.041.644.016.091.16
MarketCap / Net Operating Revenue (X)0.980.680.771.240.55
Retention Ratios (%)86.0296.0185.6776.2886.19
Price / BV (X)0.920.860.830.840.63
Price / Net Operating Revenue (X)0.980.680.771.240.55
EarningsYield0.150.270.100.100.27

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Seshasayee Paper & Boards Ltd (SESHAPAPER) as of November 17, 2024 is: 464.21

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, Seshasayee Paper & Boards Ltd (SESHAPAPER) is Undervalued by 60.07% compared to the current share price 290.00

Intrinsic Value of Seshasayee Paper & Boards Ltd (SESHAPAPER) as of November 17, 2024 is: 544.42

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, Seshasayee Paper & Boards Ltd (SESHAPAPER) is Undervalued by 87.73% compared to the current share price 290.00

Last 5 Year EPS CAGR: 17.28%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 17.64%, which is a positive sign.
  2. The stock has a low average Working Capital Days of 13.64, which is a positive sign.
  3. The stock has a low average Cash Conversion Cycle of -11.91, which is a positive sign.
  4. The company has higher reserves (1,018.75 cr) compared to borrowings (133.92 cr), indicating strong financial stability.
  5. The company has shown consistent growth in sales (217.50 cr) and profit (200.08 cr) over the years.

    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 Seshasayee Paper & Boards Ltd (SESHAPAPER):
      1. Net Profit Margin: 14.31%
        • 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: 16.66% (Industry Average ROCE: 25.21%)
        • 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%: 14.16% (Industry Average ROE: 10.18%)
        • 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): 121.5
        • 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: 2.42
        • 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: 9.56 (Industry average Stock P/E: 34.53)
        • 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: 0.01
        • 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

    Seshasayee Paper & Boards Ltd. is a Public Limited Listed company incorporated on 22/06/1960 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L21012TZ1960PLC000364 and registration number is 000364. Currently Company is involved in the business activities of Manufacture of pulp, paper and paperboard. Company’s Total Operating Revenue is Rs. 1354.93 Cr. and Equity Capital is Rs. 12.04 Cr. for the Year ended 31/03/2022.
    INDUSTRYADDRESSCONTACT
    Paper & Paper ProductsPallipalayam, Erode Tamil Nadu 638007secretarial@spbltd.com
    https://www.spbltd.com
    Management
    NamePosition Held
    Mr. N GopalaratnamChairman
    Mr. K S Kasi ViswanathanManaging Director
    Mr. Ganesh Balakrishna BhadtiDirector - Operations
    Mr. A L SomayajiDirector
    Dr. Nanditha KrishnaDirector
    Mr. Mohan Verghese ChunkathDirector
    Mr. S DurgashankarDirector
    Mrs. Sheela BalakrishnanDirector
    Mr. T Ritto CyriacNominee Director
    Mr. Hans Raj VermaNominee Director

    FAQ

    What is the latest intrinsic value of Seshasayee Paper & Boards Ltd (SESHAPAPER)?

    The latest intrinsic value of Seshasayee Paper & Boards Ltd (SESHAPAPER) as on 17 November 2024 is ₹464.21, which is 60.07% higher than the current market price of ₹290.00.

    What is the Market Cap of Seshasayee Paper & Boards Ltd (SESHAPAPER)?

    The Market Cap of Seshasayee Paper & Boards Ltd (SESHAPAPER) is 1,829 Cr..

    What is the current Stock Price of Seshasayee Paper & Boards Ltd (SESHAPAPER) as on 17 November 2024?

    The current stock price of Seshasayee Paper & Boards Ltd (SESHAPAPER) as on 17 November 2024 is ₹290.

    What is the High / Low of Seshasayee Paper & Boards Ltd (SESHAPAPER) stocks in FY 2024?

    In FY 2024, the High / Low of Seshasayee Paper & Boards Ltd (SESHAPAPER) stocks is 383/280.

    What is the Stock P/E of Seshasayee Paper & Boards Ltd (SESHAPAPER)?

    The Stock P/E of Seshasayee Paper & Boards Ltd (SESHAPAPER) is 9.56.

    What is the Book Value of Seshasayee Paper & Boards Ltd (SESHAPAPER)?

    The Book Value of Seshasayee Paper & Boards Ltd (SESHAPAPER) is 312.

    What is the Dividend Yield of Seshasayee Paper & Boards Ltd (SESHAPAPER)?

    The Dividend Yield of Seshasayee Paper & Boards Ltd (SESHAPAPER) is 1.72 %.

    What is the ROCE of Seshasayee Paper & Boards Ltd (SESHAPAPER)?

    The ROCE of Seshasayee Paper & Boards Ltd (SESHAPAPER) is 20.1 %.

    What is the ROE of Seshasayee Paper & Boards Ltd (SESHAPAPER)?

    The ROE of Seshasayee Paper & Boards Ltd (SESHAPAPER) is 15.3 %.

    What is the Face Value of Seshasayee Paper & Boards Ltd (SESHAPAPER)?

    The Face Value of Seshasayee Paper & Boards Ltd (SESHAPAPER) 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 Seshasayee Paper & Boards Ltd (SESHAPAPER). 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