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Last Updated on: 22 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Seshasayee Paper & Boards Ltd (SESHAPAPER)

About the Company - Seshasayee Paper & Boards Ltd (SESHAPAPER)

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, Cauvery RS PO, Erode Tamil Nadu 638007investor@spbltd.com
https://www.spbltd.com
Management
NamePosition Held
Mr. N GopalaratnamChairman
Mr. K S Kasi ViswanathanManaging Director
Dr. S NarayanDirector
Mr. A L SomayajiDirector
Dr. Nanditha KrishnaDirector
Mr. Mohan Verghese ChunkathDirector
Mr. Hans Raj VermaDirector
Mr. T Ritto CyriacDirector
Mr. V SridarDirector
Mr. Ganesh Balakrishna BhadtiDirector

Seshasayee Paper & Boards Ltd. Share Price Update

Share PriceValue
Today₹323.20
Previous Day₹324.55

Basic Stock Data of Seshasayee Paper & Boards Ltd (SESHAPAPER)

Market Cap 2,165 Cr.
Current Price 343
High / Low422/220
Stock P/E6.53
Book Value 281
Dividend Yield1.75 %
ROCE36.5 %
ROE27.4 %
Face Value 2.00

Data Source: screener.in

Competitors of Seshasayee Paper & Boards Ltd (SESHAPAPER)

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
West Coast Paper Mills Ltd 4,409 Cr. 668815/4655.09 4481.52 %52.9 %44.8 % 2.00
Balkrishna Paper Mills Ltd 42.9 Cr. 39.956.6/23.0 1760.00 %44.5 %% 10.0
Astron Paper & Board Mill Ltd 146 Cr. 31.540.9/18.1 33.50.00 %9.37 %14.0 % 10.0
Star Paper Mills Ltd 383 Cr. 245288/1425.46 3981.41 %16.8 %13.1 % 10.0
Ruchira Papers Ltd 400 Cr. 134164/91.15.85 1383.76 %24.0 %19.7 % 10.0
Industry Average195.18 Cr223.683.28238.71.34%29.51%18.32%8.4

Seshasayee Paper & Boards Ltd (SESHAPAPER) Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales150165328218332334471431523556573427362
Expenses122151294187292319392343383406416331273
Operating Profit28143431401579881401501579589
OPM %19%8%10%14%12%5%17%20%27%27%27%22%25%
Other Income945673751311101318
Interest1111111111100
Depreciation991010101011121212101111
Profit before tax277292636875811411481569696
Tax %31%35%-119%25%24%25%24%25%24%25%24%25%24%
Net Profit195642027657601061121187273
EPS in Rs2.980.7410.093.154.360.968.989.5616.8517.6918.6611.3811.61

Seshasayee Paper & Boards Ltd (SESHAPAPER) Quarterly Chart

Seshasayee Paper & Boards Ltd (SESHAPAPER) Profit & Loss

MonthMar 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales8209981,0081,1081,1051,3261,1847821,3552,0831,918
Expenses7169089018948981,0309176751,1891,5491,427
Operating Profit10590107214207296267108166534491
OPM %13%9%11%19%19%22%23%14%12%26%26%
Other Income5341215253126244052
Interest44373223141473333
Depreciation4929293132343538414544
Profit before tax16265017217627325693146525496
Tax %-25%32%29%23%30%30%29%-15%24%25%
Net Profit201636132123192182106110396374
EPS in Rs3.642.615.7120.9719.5430.4428.7916.8717.4462.7659.34
Dividend Payout %25%31%17%10%15%13%13%14%14%9%

Seshasayee Paper & Boards Ltd (SESHAPAPER) Profit & Loss Yearly Chart

Seshasayee Paper & Boards Ltd (SESHAPAPER) Growth

Compounded Sales Growth
10 Years:10%
5 Years:14%
3 Years:21%
TTM:-7%
Compounded Profit Growth
10 Years:34%
5 Years:27%
3 Years:30%
TTM:-1%
Stock Price CAGR
10 Years:25%
5 Years:14%
3 Years:32%
1 Year:35%
Return on Equity
10 Years:%
5 Years:18%
3 Years:16%
Last Year:27%

Seshasayee Paper & Boards Ltd (SESHAPAPER) 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

Seshasayee Paper & Boards Ltd (SESHAPAPER) 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

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%

Seshasayee Paper & Boards Ltd (SESHAPAPER) 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

Seshasayee Paper & Boards Ltd (SESHAPAPER) Shareholding Pattern Chart

No. of Seshasayee Paper & Boards Ltd (SESHAPAPER) Shareholders

This stock is not held by any mutual fund

Seshasayee Paper & Boards Ltd (SESHAPAPER) ROCE Trend

Seshasayee Paper & Boards Ltd (SESHAPAPER) EPS Trend

Seshasayee Paper & Boards Ltd (SESHAPAPER) 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

Seshasayee Paper & Boards Ltd (SESHAPAPER) Profitability Ratios (%)

Seshasayee Paper & Boards Ltd (SESHAPAPER) Liquidity Ratios

Seshasayee Paper & Boards Ltd (SESHAPAPER) Liquidity Ratios (%)

Seshasayee Paper & Boards Ltd (SESHAPAPER) Interest Coverage Ratios (X)

Seshasayee Paper & Boards Ltd (SESHAPAPER) Valuation Ratios

Fair Value / Intrinsic Value of Seshasayee Paper & Boards Ltd (SESHAPAPER)

Fair Value: ₹511.57

The stock is undervalued by 49.15% compared to the current price ₹343

*Investments are subject to market risks

Strength and Weakness of Seshasayee Paper & Boards Ltd (SESHAPAPER)

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 (921.09 cr) compared to borrowings (136.73 cr), indicating strong financial stability.
  5. The company has shown consistent growth in sales (237.18 cr) and profit (202.64 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 78.10 and average Dividend Yield of 17.91%.

Should I Buy Seshasayee Paper & Boards Ltd (SESHAPAPER) Share Now?

  • Considering various financial indicators, investors might exercise caution regarding 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: 18.2%)
      • 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): 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.
    4. 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.
    5. ✗ Stock P/E: 6.53 (Industry average Stock P/E: 4.6)
      • 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: 0.00
      • 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 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.

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