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Last Updated on: 23 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Star Paper Mills Ltd

Basic Stock Data

Last Updated: June 22, 2024, 10:24 pm

Market Cap 409 Cr.
Current Price 262
High / Low288/166
Stock P/E6.25
Book Value 415
Dividend Yield1.34 %
ROCE13.4 %
ROE10.5 %
Face Value 10.0
PEG Ratio0.55

Competitors of Star Paper Mills Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Ruchira Papers Ltd 400 Cr. 134164/91.15.85 1383.76 %24.0 %19.7 % 10.0
Kuantum Papers Ltd 1,395 Cr. 160226/1267.59 1291.88 %18.5 %17.6 % 1.00
Balkrishna Paper Mills Ltd 83.4 Cr. 25.939.1/17.38,338 68.90.00 %9.43 %% 10.0
Ballarpur Industries Ltd 110 Cr. 0.85/ 0.510.00 %33.7 %1,411 % 2.00
Astron Paper & Board Mill Ltd 94.4 Cr. 20.340.9/19.0 31.80.00 %1.85 %7.30 % 10.0
Industry Average1,178.94 Cr170.49404.75144.310.82%21.35%76.09%6.09

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales87487793113119134116123124106115100
Expenses75437083103103110911091019010195
Operating Profit11571010162425152315145
OPM %13%10%9%11%9%13%18%22%12%18%14%12%5%
Other Income1343843-6848711
Interest0000000000000
Depreciation1111111111111
Profit before tax1161011171826182125221914
Tax %28%24%29%37%-5%15%18%30%23%21%32%24%-0%
Net Profit8577181521131620151514
EPS in Rs5.013.084.374.6111.419.7913.588.1610.5412.659.739.469.17

Last Updated: June 9, 2024, 7:18 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 4:23 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales273275271272324347378341233331493444
Expenses290283256246253274328293212299412387
Operating Profit-17-815277172494821328057
OPM %-6%-3%5%10%22%21%13%14%9%10%16%13%
Other Income1-2112577918930
Interest553311111011
Depreciation11115444455555
Profit before tax-32-268216872524925448381
Tax %6%15%-107%20%11%25%-3%24%30%17%21%21%
Net Profit-30-2216166054533718376664
EPS in Rs-18.93-14.159.9610.5738.6734.7634.0823.8811.2223.4842.0741.00
Dividend Payout %0%0%0%0%5%7%7%10%22%15%12%10%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)26.67%172.73%0.00%275.00%-10.00%-1.85%-30.19%-51.35%105.56%78.38%-3.03%
Change in YoY Net Profit Growth (%)0.00%146.06%-172.73%275.00%-285.00%8.15%-28.34%-21.16%156.91%-27.18%-81.41%

Growth

Compounded Sales Growth
10 Years:6%
5 Years:7%
3 Years:13%
TTM:-3%
Compounded Profit Growth
10 Years:16%
5 Years:7%
3 Years:28%
TTM:-5%
Stock Price CAGR
10 Years:39%
5 Years:13%
3 Years:30%
1 Year:48%
Return on Equity
10 Years:11%
5 Years:9%
3 Years:8%
Last Year:13%

Last Updated: April 13, 2024, 9:22 am

Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital16161616161616161616161616
Reserves6839173148337390440473486519579605
Borrowings20202014742101105
Other Liabilities95112117109106157154135142147136134143
Total Liabilities200186170170176514562592630650672728769
Fixed Assets112100918685404405410412415415414417
CWIP2211127476335
Investments3636323232467881899411347161
Other Assets5048465158617196122135141265186
Total Assets200186170170176514562592630650672728769

Reserves and Borrowings Chart

Star Paper Mills Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -143151239363118291947
Cash from Investing Activity 001-0-3-35-31-28-4-25-13-41
Cash from Financing Activity 1-5-4-10-10-3-7-5-8-5-5-6
Net Cash Flow0-0-05-11-2-25-20-1

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-37.00-28.001.0020.0067.0070.0048.0048.0020.0031.0080.0052.00

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 Days10991488741723
Inventory Days87617090113144131224294189179219
Days Payable210176211205148136105124112735746
Cash Conversion Cycle-114-107-133-102-271633104182122124176
Working Capital Days-48-61-64-43-14-01440424444208
ROCE %-30%-28%19%36%32%19%12%10%5%9%17%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters45.17%45.17%45.17%45.17%45.17%45.17%44.93%44.93%44.93%44.93%44.93%44.93%
FIIs0.13%0.00%0.02%0.18%0.13%1.70%2.26%1.73%1.77%1.89%1.84%1.70%
DIIs0.01%0.01%0.02%0.01%0.02%0.01%0.00%0.01%0.00%0.00%0.00%0.00%
Public54.69%54.82%54.79%54.64%54.68%53.12%52.82%53.32%53.30%53.17%53.24%53.37%
No. of Shareholders20,76021,78426,69125,44524,82623,01521,94620,97520,50119,81320,27219,320

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
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)41.0142.0823.4811.2223.88
Diluted EPS (Rs.)41.0142.0823.4811.2223.88
Cash EPS (Rs.)44.4945.4626.9114.5727.18
Book Value[Excl.RevalReserv]/Share (Rs.)414.70380.83342.65321.55312.84
Book Value[Incl.RevalReserv]/Share (Rs.)414.70380.83342.65321.55312.84
Dividend / Share (Rs.)0.005.003.502.502.50
Revenue From Operations / Share (Rs.)284.77315.66211.77149.52218.47
PBDIT / Share (Rs.)57.0164.9932.0519.6635.21
PBIT / Share (Rs.)53.5261.6128.6216.3131.90
PBT / Share (Rs.)51.8353.4028.3215.9431.49
Net Profit / Share (Rs.)41.0142.0823.4811.2223.88
PBDIT Margin (%)20.0120.5815.1313.1516.11
PBIT Margin (%)18.7919.5113.5110.9114.60
PBT Margin (%)18.2016.9113.3710.6614.41
Net Profit Margin (%)14.3913.3211.087.5010.92
Return on Networth / Equity (%)9.8811.046.853.497.63
Return on Capital Employeed (%)11.3414.267.214.308.61
Return On Assets (%)8.109.015.452.695.91
Asset Turnover Ratio (%)0.580.700.490.360.55
Current Ratio (X)6.195.254.273.433.50
Quick Ratio (X)4.033.492.842.131.98
Inventory Turnover Ratio (X)2.102.561.931.132.16
Dividend Payout Ratio (NP) (%)0.008.3110.6422.2712.68
Dividend Payout Ratio (CP) (%)0.007.699.2817.1511.14
Earning Retention Ratio (%)0.0091.6989.3677.7387.32
Cash Earning Retention Ratio (%)0.0092.3190.7282.8588.86
Interest Coverage Ratio (X)106.23181.33105.6652.9584.84
Interest Coverage Ratio (Post Tax) (X)79.56140.3178.4031.2258.53
Enterprise Value (Cr.)324.2385.32208.89146.8087.26
EV / Net Operating Revenue (X)0.720.170.630.620.25
EV / EBITDA (X)3.640.844.184.781.59
MarketCap / Net Operating Revenue (X)0.780.460.740.800.32
Retention Ratios (%)0.0091.6889.3577.7287.31
Price / BV (X)0.530.380.460.370.22
Price / Net Operating Revenue (X)0.780.460.740.800.32
EarningsYield0.180.280.140.090.33

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 275.99

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: 5.34% compared to the current price 262

Intrinsic Value: 307.50

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: 17.37% compared to the current price ₹262

Last 5 Year EPS CAGR: 11.42%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of 13.50, which is a positive sign.
  2. The company has higher reserves (332.58 cr) compared to borrowings (6.25 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (331.83 cr) and profit (37.08 cr) over the years.
  1. The stock has a low average ROCE of 8.42%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 22.83, which may not be favorable.

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 Star Paper Mills Ltd:
    1. Net Profit Margin: 14.39%
      • 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: 11.34% (Industry Average ROCE: %)
      • 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%: 9.88% (Industry Average ROE: %)
      • 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): 79.56
      • 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: 4.03
      • 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: 6.25 (Industry average Stock P/E: )
      • 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: N/A
      • 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

Star Paper Mills Ltd. is a Public Limited Listed company incorporated on 31/08/1936 and has its registered office in the State of West Bengal, India. Company’s Corporate Identification Number(CIN) is L21011WB1936PLC008726 and registration number is 008726. Currently Company is involved in the business activities of Manufacture of paper and paper products. Company’s Total Operating Revenue is Rs. 330.54 Cr. and Equity Capital is Rs. 15.61 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Paper & Paper ProductsDuncan House, 2nd Floor, Kolkata West Bengal 700001star.cal@starpapers.com
http://www.starpapers.com
Management
NamePosition Held
Mr. Shiromani SharmaChairman & Ind.Director
Mr. Madhukar MishraManaging Director
Mr. Shrivardhan GoenkaNon Independent Director
Mr. C M VasudevIndependent Director
Mrs. Pragya JhunjhunwalaNon Independent Director
Mr. Sunil SrivastavIndependent Director
Mr. G P GoenkaChairperson Emeritus
Dr.(Mrs.) Sheela BhideIndependent Director

FAQ

What is the latest fair value of Star Paper Mills Ltd?

The latest fair value of Star Paper Mills Ltd is ₹275.99.

What is the Market Cap of Star Paper Mills Ltd?

The Market Cap of Star Paper Mills Ltd is 409 Cr..

What is the current Stock Price of Star Paper Mills Ltd as on 23 June 2024?

The current stock price of Star Paper Mills Ltd as on 23 June 2024 is ₹262.

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

In FY 2024, the High / Low of Star Paper Mills Ltd stocks is 288/166.

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

The Stock P/E of Star Paper Mills Ltd is 6.25.

What is the Book Value of Star Paper Mills Ltd?

The Book Value of Star Paper Mills Ltd is 415.

What is the Dividend Yield of Star Paper Mills Ltd?

The Dividend Yield of Star Paper Mills Ltd is 1.34 %.

What is the ROCE of Star Paper Mills Ltd?

The ROCE of Star Paper Mills Ltd is 13.4 %.

What is the ROE of Star Paper Mills Ltd?

The ROE of Star Paper Mills Ltd is 10.5 %.

What is the Face Value of Star Paper Mills Ltd?

The Face Value of Star Paper Mills Ltd is 10.0.

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 Star 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