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Last Updated on: 30 May, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Seshasayee Paper & Boards Ltd (SESHAPAPER)

Basic Stock Data

Last Updated: May 30, 2024, 6:17 am

Market Cap 2,077 Cr.
Current Price 329
High / Low422/254
Stock P/E7.67
Book Value 303
Dividend Yield1.52 %
ROCE20.1 %
ROE15.3 %
Face Value 2.00
PEG Ratio0.92

Competitors of Seshasayee Paper & Boards Ltd (SESHAPAPER)

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Cella Space Ltd 24.4 Cr. 12.114.0/7.6926.3 10.30.00 %10.7 %% 10.0
JK Paper Ltd 5,955 Cr. 352452/3065.30 2722.30 %28.5 %34.0 % 10.0
Malu Paper Mills Ltd 65.6 Cr. 38.469.9/31.172.9 3.990.00 %9.25 %13.7 % 10.0
NR Agarwal Industries Ltd 758 Cr. 446538/2625.85 4200.00 %21.6 %17.1 % 10.0
Magnum Ventures Ltd 322 Cr. 54.777.8/29.310.1 1090.00 %6.06 %10.6 % 10.0
Industry Average1,425.00 Cr180.6424.09163.060.46%15.22%15.08%10.00

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: May 10, 2024, 4:31 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 6:03 am

MonthMar 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales8209981,0081,1081,1051,3261,1847821,3552,0831,802
Expenses7169089018948981,0309176751,1891,5491,462
Operating Profit10590107214207296267108166534340
OPM %13%9%11%19%19%22%23%14%12%26%19%
Other Income5341215253126244063
Interest44373223141473332
Depreciation4929293132343538414544
Profit before tax16265017217627325693146525357
Tax %-25%32%29%23%30%30%29%-15%24%25%24%
Net Profit201636132123192182106110396271
EPS in Rs3.642.615.7120.9719.5430.4428.7916.8717.4462.7642.93
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%

Growth

Compounded Sales Growth
10 Years:%
5 Years:6%
3 Years:32%
TTM:-13%
Compounded Profit Growth
10 Years:%
5 Years:7%
3 Years:37%
TTM:-32%
Stock Price CAGR
10 Years:23%
5 Years:12%
3 Years:28%
1 Year:27%
Return on Equity
10 Years:%
5 Years:16%
3 Years:18%
Last Year:15%

Last Updated: May 23, 2024, 12:36 pm

Balance Sheet

MonthMar 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital1113131313131212121212
Reserves3524014305927138811,0071,1311,2431,6231,759
Borrowings43432930217114997108400
Other Liabilities320380391343406446419367400443431
Total Liabilities1,1181,1231,1351,1181,2811,4361,4481,5181,6602,0792,202
Fixed Assets726661638650686685688747828809797
CWIP213504127233132142019
Investments11434793108107103152178197233
Other Assets3794053993354606216265856401,0541,153
Total Assets1,1181,1231,1351,1181,2811,4361,4481,5181,6602,0792,202

Reserves and Borrowings Chart

Seshasayee Paper & Boards Ltd (SESHAPAPER) Cash Flow

MonthMar 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 209105112200225273165-7276329
Cash from Investing Activity -317-20-46-36-50-16-26-54-251-372
Cash from Financing Activity 176-104-66-154-51-89-124-31-22-22
Net Cash Flow68-2001012416815-913-66

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

Seshasayee Paper & Boards Ltd (SESHAPAPER) Financial Efficiency Indicators

MonthMar 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days44454735352225382717
Inventory Days1121169711514711018741387138
Days Payable251194188168220211215311137134
Cash Conversion Cycle-95-33-44-18-38-79-3140-2321
Working Capital Days32724-1-13-171265614
ROCE %11%26%22%31%26%9%12%37%

Financial Efficiency Indicators Chart

Seshasayee Paper & Boards Ltd (SESHAPAPER) Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters42.65%42.65%42.65%42.65%42.65%42.80%42.78%42.78%42.78%42.78%42.78%42.78%
FIIs10.64%10.82%10.95%10.95%10.96%10.71%10.98%12.04%12.73%12.73%12.86%12.86%
DIIs0.02%0.03%0.03%0.24%0.24%0.24%0.22%0.21%0.21%0.21%0.21%0.03%
Government14.27%14.27%14.27%14.27%14.27%14.27%14.27%14.27%14.27%14.27%14.27%14.27%
Public32.41%32.23%32.10%31.89%31.88%31.98%31.75%30.69%30.00%29.99%29.87%30.05%
No. of Shareholders17,18315,45215,97617,31117,76418,59218,48219,46520,89720,46722,29625,683

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue2.002.002.002.0010.00
Basic EPS (Rs.)65.7218.2717.6628.9730.45
Diluted EPS (Rs.)65.7218.2717.6628.9730.45
Cash EPS (Rs.)71.5223.7322.7533.19177.28
Book Value[Excl.RevalReserv]/Share (Rs.)271.65208.51189.82163.64708.33
Book Value[Incl.RevalReserv]/Share (Rs.)271.65208.51189.82163.64708.33
Revenue From Operations / Share (Rs.)345.98225.12129.91187.831051.16
PBDIT / Share (Rs.)93.5930.1120.9346.06252.76
PBIT / Share (Rs.)86.0723.3214.6840.50225.94
PBT / Share (Rs.)85.5422.8414.1939.41214.99
Net Profit / Share (Rs.)64.0016.9416.5027.63150.46
NP After MI And SOA / Share (Rs.)65.7518.2817.6728.98152.30
PBDIT Margin (%)27.0513.3716.1124.5224.04
PBIT Margin (%)24.8710.3511.2921.5621.49
PBT Margin (%)24.7210.1410.9220.9820.45
Net Profit Margin (%)18.497.5212.6914.7114.31
NP After MI And SOA Margin (%)19.008.1113.6015.4314.48
Return on Networth / Equity (%)24.208.769.3017.7121.50
Return on Capital Employeed (%)28.859.926.7920.8025.79
Return On Assets (%)19.046.627.0112.5113.37
Long Term Debt / Equity (X)0.000.000.000.010.05
Total Debt / Equity (X)0.000.000.000.010.05
Asset Turnover Ratio (%)1.130.860.530.820.98
Current Ratio (X)3.032.422.592.571.76
Quick Ratio (X)2.181.911.551.851.35
Inventory Turnover Ratio (X)5.233.492.323.954.51
Dividend Payout Ratio (NP) (%)3.9814.3223.7113.809.85
Dividend Payout Ratio (CP) (%)3.5710.4417.5111.588.37
Earning Retention Ratio (%)96.0285.6876.2986.2090.15
Cash Earning Retention Ratio (%)96.4389.5682.4988.4291.63
Interest Coverage Ratio (X)176.6263.1543.3042.1523.08
Interest Coverage Ratio (Post Tax) (X)121.7836.5435.1226.2814.74
Enterprise Value (Cr.)924.66726.45767.26335.68915.23
EV / Net Operating Revenue (X)0.440.530.980.280.69
EV / EBITDA (X)1.644.016.091.162.87
MarketCap / Net Operating Revenue (X)0.680.771.240.550.88
Retention Ratios (%)96.0185.6776.2886.1990.14
Price / BV (X)0.860.830.840.631.32
Price / Net Operating Revenue (X)0.680.771.240.550.88
EarningsYield0.270.100.100.270.16

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: ₹360.98

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: 9.72% compared to the current price ₹329

Intrinsic Value: ₹391.01

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: 18.85% compared to the current price ₹329

Last 5 Year EPS CAGR: 8.32%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 17.40%, which is a positive sign.
  2. The stock has a low average Working Capital Days of 12.00, which is a positive sign.
  3. The stock has a low average Cash Conversion Cycle of -17.20, which is a positive sign.
  4. The company has higher reserves (933.82 cr) compared to borrowings (138.64 cr), indicating strong financial stability.
  5. The company has shown consistent growth in sales (237.18 cr) and profit (190.00 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: 18.49%
        • 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: 28.85% (Industry Average ROCE: 15.22%)
        • 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. ✓ ROE%: 24.20% (Industry Average ROE: 15.08%)
        • 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): 121.78
        • 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: 2.18
        • 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: 7.67 (Industry average Stock P/E: 24.09)
        • 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: 0.00
        • 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

    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 fair value of Seshasayee Paper & Boards Ltd (SESHAPAPER)?

    The latest fair value of Seshasayee Paper & Boards Ltd (SESHAPAPER) is ₹360.98.

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

    The Market Cap of Seshasayee Paper & Boards Ltd (SESHAPAPER) is 2,077 Cr..

    What is the current Stock Price of Seshasayee Paper & Boards Ltd (SESHAPAPER) as on 30 May 2024?

    The current stock price of Seshasayee Paper & Boards Ltd (SESHAPAPER) as on 30 May 2024 is ₹329.

    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 422/254.

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

    The Stock P/E of Seshasayee Paper & Boards Ltd (SESHAPAPER) is 7.67.

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

    The Book Value of Seshasayee Paper & Boards Ltd (SESHAPAPER) is 303.

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

    The Dividend Yield of Seshasayee Paper & Boards Ltd (SESHAPAPER) is 1.52 %.

    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