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Last Updated on: 22 February, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 500444 | NSE: WSTCSTPAPR

Fundamental Analysis of West Coast Paper Mills Ltd

About the Company - West Coast Paper Mills Ltd

West Coast Paper Mills Ltd. is a Public Limited Listed company incorporated on 25/03/1955 and has its registered office in the State of Karnataka, India. Company’s Corporate Identification Number(CIN) is L02101KA1955PLC001936 and registration number is 001936. Currently Company is involved in the business activities of Manufacture of pulp, paper and paperboard, Manufacture of fibre optic cables for data transmission or live transmission of images. Company’s Total Operating Revenue is Rs. 1985.20 Cr. and Equity Capital is Rs. 13.21 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Paper & Paper ProductsBangur Nagar, Dandeli, Uttar Kannada Dist. Karnataka 581325co.sec@westcoastpaper.com
http://www.westcoastpaper.com
Management
NamePosition Held
Mr. S K BangurChairman & Managing Director
Mr. Saurabh BangurVice Chairman
Mr. Virendraa BangurJoint Managing Director
Mr. Rajendra JainExecutive Director & CFO
Mrs. Shashi BangurDirector
Mr. Ashok Kumar GargDirector
Mr. Vinod Balmukand AgarwalDirector
Mr. Sudarshan SomaniDirector
Mrs. Sudha BhushanDirector

West Coast Paper Mills Ltd. Share Price Update

Share PriceValue
Today₹681.45
Previous Day₹691.30

Basic Stock Data of West Coast Paper Mills Ltd

Market Cap 4,409 Cr.
Current Price 668
High / Low815/465
Stock P/E5.09
Book Value 448
Dividend Yield1.52 %
ROCE52.9 %
ROE44.8 %
Face Value 2.00

Data Source: screener.in

Competitors of West Coast 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
Satia Industries Ltd 1,303 Cr. 130155/1015.95 85.30.76 %20.3 %30.0 % 1.00
JK Paper Ltd 6,510 Cr. 384452/3065.78 2722.08 %28.5 %34.0 % 10.0
NR Agarwal Industries Ltd 776 Cr. 456538/1965.99 4200.00 %21.6 %17.1 % 10.0
Shrenik Ltd 64.3 Cr. 1.051.70/0.85 0.960.00 %1.56 %0.35 % 1.00
Industry Average249.46 Cr221.014.71183.251.32%19.19%20.23%6.4

West Coast Paper Mills Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales4295769375389008721,0671,1141,2101,2391,3571,1391,194
Expenses409517774438758712836793843778865744884
Operating Profit2059163100142160231321367461493395310
OPM %5%10%17%19%16%18%22%29%30%37%36%35%26%
Other Income65814111122111724103535
Interest1821101811121767141076
Depreciation56576152545453464748484446
Profit before tax-48-14994488106183280331423444379294
Tax %17%66%12%10%12%16%23%25%26%26%28%27%26%
Net Profit-40-587397888141209246311321278219
EPS in Rs-5.38-0.4411.344.8410.9711.8218.8628.0632.5039.9342.1237.1728.88

West Coast Paper Mills Ltd Quarterly Chart

West Coast Paper Mills Ltd Profit & Loss

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,7101,9792,4932,2453,3784,9214,929
Expenses1,3481,4681,8751,9832,7403,2743,271
Operating Profit3625116182616381,6471,658
OPM %21%26%25%12%19%33%34%
Other Income182052125458104
Interest42297570593737
Depreciation116176198229213189186
Profit before tax222326397-264201,4781,540
Tax %-0%9%-2%83%18%26%
Net Profit223296406-43461,0871,129
EPS in Rs33.7944.8256.08-0.4746.49142.62148.10
Dividend Payout %12%11%9%-213%13%7%

West Coast Paper Mills Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth
Year2018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)32.74%37.16%-100.99%8750.00%214.16%
Change in YoY Net Profit Growth (%)0.00%4.43%-138.15%8850.99%-8535.84%

West Coast Paper Mills Ltd Growth

Compounded Sales Growth
10 Years:%
5 Years:24%
3 Years:25%
TTM:16%
Compounded Profit Growth
10 Years:%
5 Years:34%
3 Years:37%
TTM:64%
Stock Price CAGR
10 Years:29%
5 Years:21%
3 Years:56%
1 Year:33%
Return on Equity
10 Years:%
5 Years:27%
3 Years:25%
Last Year:45%

West Coast Paper Mills Ltd Balance Sheet

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital13131313131313
Reserves8261,0901,3751,3731,6702,5652,949
Borrowings315361753676478231133
Other Liabilities4364551,0431,0071,0971,3641,532
Total Liabilities1,5901,9203,1843,0693,2594,1734,627
Fixed Assets1,0359912,0101,8731,7571,6591,642
CWIP3375734225589
Investments1223452204721,3101,737
Other Assets5516691,0729421,0081,1491,159
Total Assets1,5901,9203,1843,0693,2594,1734,627

West Coast Paper Mills Ltd Reserves and Borrowings Chart

West Coast Paper Mills Ltd Cash Flow

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 3263946493385911,238
Cash from Investing Activity -139-382-858-166-291-894
Cash from Financing Activity -194-12218-167-295-334
Net Cash Flow-6-195510

West Coast Paper Mills Ltd Financial Efficiency Indicators

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days253021332625
Inventory Days1371591671288588
Days Payable816763645954
Cash Conversion Cycle82123124985258
Working Capital Days334730493523
ROCE %27%24%2%20%53%

West Coast Paper Mills Ltd Financial Efficiency Indicators Chart

West Coast Paper Mills Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters56.20%56.29%56.35%56.45%56.47%56.48%56.48%56.51%56.52%56.53%56.53%56.53%
FIIs2.67%2.19%1.97%1.95%2.23%2.23%2.35%3.67%5.62%7.04%7.38%7.80%
DIIs10.00%8.99%8.39%8.48%8.44%8.80%8.76%7.46%7.60%7.57%7.18%6.77%
Public31.13%32.53%33.28%33.11%32.86%32.48%32.41%32.34%30.26%28.87%28.92%28.90%
No. of Shareholders35,86133,48932,77632,53730,05831,42634,31940,55042,76142,60352,02957,706

West Coast Paper Mills Ltd Shareholding Pattern Chart

No. of West Coast Paper Mills Ltd Shareholders

West Coast Paper Mills Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Nippon India Small Cap Fund33483100.53218.06
L&T Flexicap Fund - Regular Plan6978801.4742.52
Quant Small Cap Fund1028360.066.7
Motilal Oswal Nifty Microcap 250 Index Fund307040.352
Groww Nifty Total Market Index Fund790.010.01

West Coast Paper Mills Ltd ROCE Trend

West Coast Paper Mills Ltd EPS Trend

West Coast Paper Mills Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)142.6246.49-0.4756.0844.82
Diluted EPS (Rs.)142.6246.49-0.4756.0844.82
Cash EPS (Rs.)193.2684.5434.0691.5071.47
Book Value[Excl.RevalReserv]/Share (Rs.)463.99308.11258.09258.02167.06
Book Value[Incl.RevalReserv]/Share (Rs.)463.99308.11258.09258.02167.06
Revenue From Operations / Share (Rs.)745.02511.39339.83377.43299.68
PBDIT / Share (Rs.)260.38104.7141.98101.4180.34
PBIT / Share (Rs.)231.6972.547.2671.4653.69
PBT / Share (Rs.)223.7563.65-3.9660.1149.30
Net Profit / Share (Rs.)164.5852.37-0.6661.5444.82
NP After MI And SOA / Share (Rs.)142.6246.49-0.4656.0844.82
PBDIT Margin (%)34.9420.4712.3526.8726.80
PBIT Margin (%)31.0914.182.1318.9317.91
PBT Margin (%)30.0312.44-1.1615.9216.45
Net Profit Margin (%)22.0910.24-0.1916.3014.95
NP After MI And SOA Margin (%)19.149.09-0.1314.8514.95
Return on Networth / Equity (%)36.5018.20-0.2226.6726.82
Return on Capital Employeed (%)45.0018.752.0118.7025.20
Return On Assets (%)22.519.18-0.0911.4615.41
Long Term Debt / Equity (X)0.020.130.290.380.13
Total Debt / Equity (X)0.070.260.360.440.28
Asset Turnover Ratio (%)0.930.720.490.911.13
Current Ratio (X)2.651.631.331.451.64
Quick Ratio (X)2.021.130.780.670.80
Inventory Turnover Ratio (X)3.463.001.752.772.60
Dividend Payout Ratio (NP) (%)4.202.150.0021.5110.74
Dividend Payout Ratio (CP) (%)3.501.270.0014.026.73
Earning Retention Ratio (%)95.8097.850.0078.4989.26
Cash Earning Retention Ratio (%)96.5098.730.0085.9893.27
Interest Coverage Ratio (X)46.3911.783.968.9418.31
Interest Coverage Ratio (Post Tax) (X)30.746.890.996.4211.22
Enterprise Value (Cr.)4111.052941.592324.011615.832077.23
EV / Net Operating Revenue (X)0.830.871.040.641.05
EV / EBITDA (X)2.394.258.382.413.91
MarketCap / Net Operating Revenue (X)0.710.650.700.340.89
Retention Ratios (%)95.7997.840.0078.4889.25
Price / BV (X)1.361.311.140.611.61
Price / Net Operating Revenue (X)0.710.650.700.340.89
EarningsYield0.260.130.000.430.16

West Coast Paper Mills Ltd Profitability Ratios (%)

West Coast Paper Mills Ltd Liquidity Ratios

West Coast Paper Mills Ltd Liquidity Ratios (%)

West Coast Paper Mills Ltd Interest Coverage Ratios (X)

West Coast Paper Mills Ltd Valuation Ratios

Fair Value / Intrinsic Value of West Coast Paper Mills Ltd

Fair Value: ₹1037.11

The stock is undervalued by 55.26% compared to the current price ₹668

*Investments are subject to market risks

Strength and Weakness of West Coast Paper Mills Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 21.00%, which is a positive sign.
  2. The company has higher reserves (1,692.57 cr) compared to borrowings (421.00 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (2.43 cr) and profit (191.57 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 87.33 and average Dividend Yield of 16.85%.
  2. The stock has a high average Working Capital Days of 36.17, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 89.50, which may not be favorable.

Should I Buy West Coast Paper Mills Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in West Coast Paper Mills Ltd:
    1. Net Profit Margin: 22.09%
      • 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: 45.00% (Industry Average ROCE: 15.1%)
      • 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): 30.74
      • 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: 2.02
      • 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 of 4.99 (Industry average Stock P/E: 4.85)
      • 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: 0.07
      • 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 West Coast 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