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Last Updated on: 28 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Star Paper Mills Ltd

About the Company - Star Paper Mills Ltd

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

Star Paper Mills Ltd. Share Price Update

Share PriceValue
Today₹257.25
Previous Day₹266.00

Basic Stock Data of Star Paper Mills Ltd

Market Cap 383 Cr.
Current Price 246
High / Low288/142
Stock P/E5.52
Book Value 398
Dividend Yield1.43 %
ROCE16.8 %
ROE13.1 %
Face Value 10.0

Data Source: screener.in

Competitors of Star Paper Mills Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Malu Paper Mills Ltd 86.4 Cr. 50.769.9/25.3 3.850.00 %4.25 %88.5 % 10.0
Astron Paper & Board Mill Ltd 136 Cr. 29.240.9/18.1 33.50.00 %9.37 %14.0 % 10.0
Emami Paper Mills Ltd 816 Cr. 135150/10017.8 1191.19 %10.4 %16.0 % 2.00
West Coast Paper Mills Ltd 4,356 Cr. 659815/4655.07 4481.52 %52.9 %44.8 % 2.00
Magnum Ventures Ltd 331 Cr. 58.577.8/24.010.3 1090.00 %6.06 %10.6 % 10.0
Industry Average1,145.08 Cr186.486.63142.670.54%16.60%34.78%6.80

Star Paper Mills Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales556687487793113119134116123124106
Expenses5256754370831031031109110910190
Operating Profit31011571010162425152315
OPM %5%16%13%10%9%11%9%13%18%22%12%18%14%
Other Income121343843-6848
Interest0000000000000
Depreciation1111111111111
Profit before tax311116101117182618212522
Tax %39%30%28%24%29%37%-5%15%18%30%23%21%32%
Net Profit28857718152113162015
EPS in Rs1.025.025.013.084.374.6111.419.7913.588.1610.5412.659.73

Star Paper Mills Ltd Quarterly Chart

Star Paper Mills Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales228273275271272324347378341233331493468
Expenses267290283256246253274328293212299412391
Operating Profit-39-17-815277172494821328078
OPM %-17%-6%-3%5%10%22%21%13%14%9%10%16%17%
Other Income111-2112577918915
Interest3553311111011
Depreciation1111115444455555
Profit before tax-42-32-268216872524925448387
Tax %0%6%15%-107%20%11%25%-3%24%30%17%21%
Net Profit-42-30-2216166054533718376664
EPS in Rs-27.16-18.93-14.159.9610.5738.6734.7634.0823.8811.2223.4842.0741.08
Dividend Payout %0%0%0%0%0%5%7%7%10%22%15%12%

Star Paper Mills Ltd Profit & Loss Yearly Chart

Star Paper Mills Ltd 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:42%
5 Years:19%
3 Years:29%
1 Year:49%
Return on Equity
10 Years:11%
5 Years:9%
3 Years:8%
Last Year:13%

Star Paper Mills Ltd 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

Star Paper Mills Ltd 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

Star Paper Mills Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days111099148874172
Inventory Days11287617090113144131224294189179
Days Payable1572101762112051481361051241127357
Cash Conversion Cycle-34-114-107-133-102-271633104182122124
Working Capital Days-14-48-61-64-43-14-01440424444
ROCE %-32%-30%-28%19%36%32%19%12%10%5%9%17%

Star Paper Mills Ltd Financial Efficiency Indicators Chart

Star Paper Mills Ltd 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

Star Paper Mills Ltd Shareholding Pattern Chart

No. of Star Paper Mills Ltd Shareholders

This stock is not held by any mutual fund

Star Paper Mills Ltd ROCE Trend

Star Paper Mills Ltd EPS Trend

Star Paper Mills Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)42.0823.4811.2223.8834.08
Diluted EPS (Rs.)42.0823.4811.2223.8834.08
Cash EPS (Rs.)45.4626.9114.5727.1836.89
Book Value[Excl.RevalReserv]/Share (Rs.)380.83342.65321.55312.84291.69
Book Value[Incl.RevalReserv]/Share (Rs.)380.83342.65321.55312.84291.69
Dividend / Share (Rs.)5.003.502.502.502.50
Revenue From Operations / Share (Rs.)315.66211.77149.52218.47242.02
PBDIT / Share (Rs.)64.9932.0519.6635.2136.24
PBIT / Share (Rs.)61.6128.6216.3131.9033.43
PBT / Share (Rs.)53.4028.3215.9431.4933.02
Net Profit / Share (Rs.)42.0823.4811.2223.8834.08
PBDIT Margin (%)20.5815.1313.1516.1114.97
PBIT Margin (%)19.5113.5110.9114.6013.81
PBT Margin (%)16.9113.3710.6614.4113.64
Net Profit Margin (%)13.3211.087.5010.9214.08
Return on Networth / Equity (%)11.046.853.497.6311.68
Return on Capital Employeed (%)14.267.214.308.619.64
Return On Assets (%)9.015.452.695.918.99
Asset Turnover Ratio (%)0.700.490.360.550.65
Current Ratio (X)5.254.273.433.502.98
Quick Ratio (X)3.492.842.131.982.01
Inventory Turnover Ratio (X)2.561.931.132.162.91
Dividend Payout Ratio (NP) (%)8.3110.6422.2712.688.88
Dividend Payout Ratio (CP) (%)7.699.2817.1511.148.20
Earning Retention Ratio (%)91.6989.3677.7387.3291.12
Cash Earning Retention Ratio (%)92.3190.7282.8588.8691.80
Interest Coverage Ratio (X)181.33105.6652.9584.8486.87
Interest Coverage Ratio (Post Tax) (X)140.3178.4031.2258.5382.69
Enterprise Value (Cr.)85.32208.89146.8087.26174.49
EV / Net Operating Revenue (X)0.170.630.620.250.46
EV / EBITDA (X)0.844.184.781.593.08
MarketCap / Net Operating Revenue (X)0.460.740.800.320.52
Retention Ratios (%)91.6889.3577.7287.3191.11
Price / BV (X)0.380.460.370.220.43
Price / Net Operating Revenue (X)0.460.740.800.320.52
EarningsYield0.280.140.090.330.27

Star Paper Mills Ltd Profitability Ratios (%)

Star Paper Mills Ltd Liquidity Ratios

Star Paper Mills Ltd Liquidity Ratios (%)

Star Paper Mills Ltd Interest Coverage Ratios (X)

Star Paper Mills Ltd Valuation Ratios

Fair Value / Intrinsic Value of Star Paper Mills Ltd

Fair Value: ₹291.92

The stock is undervalued by 18.67% compared to the current price ₹246

*Investments are subject to market risks

Strength and Weakness of Star Paper Mills Ltd

StrengthWeakness
  1. The stock has a low average Working Capital Days of -5.00, which is a positive sign.
  2. The company has higher reserves (310.15 cr) compared to borrowings (7.31 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (325.69 cr) and profit (31.46 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 37.63 and average Dividend Yield of 14.47%.
  2. The stock has a low average ROCE of 5.75%, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 5.33, which may not be favorable.

Should I Buy Star Paper Mills Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Star Paper Mills Ltd:
    1. Net Profit Margin: 13.32%
      • 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: 14.26% (Industry Average ROCE: 13.66%)
      • 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): 140.31
      • 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: 3.49
      • 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: 5.46 (Industry average Stock P/E: 50.83)
      • 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: 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 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 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