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.

INDUSTRY	ADDRESS	CONTACT
Paper & Paper Products	Bangur Nagar, Uttar Kannada Dist. Karnataka 581325	co.sec@westcoastpaper.com http://www.westcoastpaper.com

Management
Name	Position Held
Mr. S K Bangur	Chairman & Managing Director
Mr. Saurabh Bangur	Vice Chairman
Mr. Virendraa Bangur	Joint Managing Director
Mr. Rajendra Jain	Executive Director
Mrs. Shashi Bangur	Director
Mr. Ashok Kumar Garg	Director
Mr. Vinod Balmukand Agarwal	Director
Mrs. Sudha Bhushan	Director
Mr. Shiv Ratan Goenka	Director
Mr. Prakash Kacholia	Director

Basic Stock Data of West Coast Paper Mills Ltd

Last Updated: July 26, 2024, 11:06 pm

Market Cap	4,109 Cr.
Current Price	622
High / Low	815/466
Stock P/E	5.92
Book Value	490
Dividend Yield	1.29 %
ROCE	29.3 %
ROE	23.8 %
Face Value	2.00
PEG Ratio	0.33

Data Source: screener.in

Competitors of West Coast Paper Mills Ltd

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
Encode Packaging India Ltd	4.47 Cr.	14.2	18.7/5.67	40.7	10.6	0.00 %	3.24 %	3.34 %	10.0
Cella Space Ltd	27.6 Cr.	13.7	15.4/7.69	29.7	10.3	0.00 %	10.7 %	%	10.0
Bandaram Pharma Packtech Ltd	37.3 Cr.	31.1	47.8/24.0	38.5	10.2	0.32 %	9.10 %	12.6 %	10.0
Agio Paper & Industries Ltd	8.90 Cr.	5.52	7.74/2.80		1.87	0.00 %	0.90 %	%	10.0
Star Paper Mills Ltd	381 Cr.	245	288/170	5.82	415	1.43 %	13.4 %	10.5 %	10.0
Industry Average	1,384.94 Cr	147.77		451.42	135.19	0.72%	27.81%	87.56%	6.61

West Coast Paper Mills Ltd Quarterly Results

Month	Dec 2020	Mar 2021	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023
Sales	576	937	538	900	872	1,067	1,114	1,210	1,239	1,357	1,139	1,194	1,045
Expenses	517	774	438	758	712	836	793	843	778	865	744	884	828
Operating Profit	59	163	100	142	160	231	321	367	461	493	395	310	218
OPM %	10%	17%	19%	16%	18%	22%	29%	30%	37%	36%	35%	26%	21%
Other Income	5	8	14	11	11	22	11	17	24	10	35	35	41
Interest	21	10	18	11	12	17	6	7	14	10	7	6	6
Depreciation	57	61	52	54	54	53	46	47	48	48	44	46	46
Profit before tax	-14	99	44	88	106	183	280	331	423	444	379	294	207
Tax %	66%	12%	10%	12%	16%	23%	25%	26%	26%	28%	27%	26%	23%
Net Profit	-5	87	39	78	88	141	209	246	311	321	278	219	159
EPS in Rs	-0.44	11.34	4.84	10.97	11.82	18.86	28.06	32.50	39.93	42.12	37.17	28.88	20.58

Last Updated: July 11, 2024, 10:11 am

West Coast Paper Mills Ltd Quarterly Chart

West Coast Paper Mills Ltd Profit & Loss

Last Updated: July 10, 2024, 2:20 pm

Month	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	TTM
Sales	1,710	1,979	2,493	2,245	3,378	4,921	4,735
Expenses	1,348	1,468	1,875	1,983	2,740	3,274	3,320
Operating Profit	362	511	618	261	638	1,647	1,415
OPM %	21%	26%	25%	12%	19%	33%	30%
Other Income	18	20	52	12	54	58	122
Interest	42	29	75	70	59	37	29
Depreciation	116	176	198	229	213	189	184
Profit before tax	222	326	397	-26	420	1,478	1,324
Tax %	-0%	9%	-2%	83%	18%	26%
Net Profit	223	296	406	-4	346	1,087	977
EPS in Rs	33.79	44.82	56.08	-0.47	46.49	142.62	128.75
Dividend Payout %	12%	11%	9%	-213%	13%	7%

West Coast Paper Mills Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023
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:	18%
3 Years:	26%
TTM:	-10%

Compounded Profit Growth
10 Years:	%
5 Years:	19%
3 Years:	496%
TTM:	-27%

Stock Price CAGR
10 Years:	27%
5 Years:	21%
3 Years:	36%
1 Year:	31%

Return on Equity
10 Years:	%
5 Years:	25%
3 Years:	30%
Last Year:	24%

Last Updated: July 25, 2024, 4:18 am

West Coast Paper Mills Ltd Balance Sheet

Last Updated: July 10, 2024, 2:20 pm

Month	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Sep 2023
Equity Capital	13	13	13	13	13	13	13
Reserves	826	1,090	1,375	1,373	1,670	2,565	2,949
Borrowings	315	361	753	676	478	231	133
Other Liabilities	436	455	1,043	1,007	1,097	1,364	1,532
Total Liabilities	1,590	1,920	3,184	3,069	3,259	4,173	4,627
Fixed Assets	1,035	991	2,010	1,873	1,757	1,659	1,642
CWIP	3	37	57	34	22	55	89
Investments	1	223	45	220	472	1,310	1,737
Other Assets	551	669	1,072	942	1,008	1,149	1,159
Total Assets	1,590	1,920	3,184	3,069	3,259	4,173	4,627

West Coast Paper Mills Ltd Reserves and Borrowings Chart

West Coast Paper Mills Ltd Cash Flow

Month	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity	326	394	649	338	591	1,238	764
Cash from Investing Activity	-139	-382	-858	-166	-291	-894	-714
Cash from Financing Activity	-194	-12	218	-167	-295	-334	-61
Net Cash Flow	-6	-1	9	5	5	10	-11

West Coast Paper Mills Ltd Free Cash Flow

Month	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Free Cash Flow	47.00	150.00	-135.00	-415.00	160.00	-230.00

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.

West Coast Paper Mills Ltd Free Cash Flow Chart

West Coast Paper Mills Ltd Financial Efficiency Indicators

Month	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Debtor Days	25	30	21	33	26	25
Inventory Days	137	159	167	128	85	88
Days Payable	81	67	63	64	59	54
Cash Conversion Cycle	82	123	124	98	52	58
Working Capital Days	33	47	30	49	35	23
ROCE %		27%	24%	2%	20%	53%

West Coast Paper Mills Ltd Financial Efficiency Indicators Chart

West Coast Paper Mills Ltd Share Holding Pattern

Month	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024
Promoters	56.35%	56.45%	56.47%	56.48%	56.48%	56.51%	56.52%	56.53%	56.53%	56.53%	56.53%	56.53%
FIIs	1.97%	1.95%	2.23%	2.23%	2.35%	3.67%	5.62%	7.04%	7.38%	7.80%	7.98%	8.19%
DIIs	8.39%	8.48%	8.44%	8.80%	8.76%	7.46%	7.60%	7.57%	7.18%	6.77%	6.62%	7.13%
Public	33.28%	33.11%	32.86%	32.48%	32.41%	32.34%	30.26%	28.87%	28.92%	28.90%	28.88%	28.15%
No. of Shareholders	32,776	32,537	30,058	31,426	34,319	40,550	42,761	42,603	52,029	57,706	57,193	60,840

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 Name	No of Shares	AUM (%)	Amount Invested (Cr)	Previous Number of Shares	Previous Date	Percentage Change
Nippon India Small Cap Fund	3,348,310	0.57	259.83	3,348,310	2024-07-25	0%
HSBC Flexi Cap Fund	743,800	1.4	57.72	3,348,310	2024-07-25	-77.79%
L&T Flexicap Fund - Regular Plan	697,880	1.47	42.52	3,348,310	2024-07-25	-79.16%

West Coast Paper Mills Ltd ROCE Trend

West Coast Paper Mills Ltd EPS Trend

West Coast Paper Mills Ltd Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	2.00	2.00	2.00	2.00	2.00
Basic EPS (Rs.)	104.77	142.62	46.49	-0.47	56.08
Diluted EPS (Rs.)	104.77	142.62	46.49	-0.47	56.08
Cash EPS (Rs.)	147.04	193.26	84.54	34.06	91.50
Book Value[Excl.RevalReserv]/Share (Rs.)	576.90	463.99	308.11	258.09	258.02
Book Value[Incl.RevalReserv]/Share (Rs.)	576.90	463.99	308.11	258.09	258.02
Revenue From Operations / Share (Rs.)	673.39	745.02	511.39	339.83	377.43
PBDIT / Share (Rs.)	191.11	260.38	104.71	41.98	101.41
PBIT / Share (Rs.)	163.09	231.69	72.54	7.26	71.46
PBT / Share (Rs.)	159.47	223.75	63.65	-3.96	60.11
Net Profit / Share (Rs.)	119.02	164.58	52.37	-0.66	61.54
NP After MI And SOA / Share (Rs.)	104.77	142.62	46.49	-0.46	56.08
PBDIT Margin (%)	28.38	34.94	20.47	12.35	26.87
PBIT Margin (%)	24.21	31.09	14.18	2.13	18.93
PBT Margin (%)	23.68	30.03	12.44	-1.16	15.92
Net Profit Margin (%)	17.67	22.09	10.24	-0.19	16.30
NP After MI And SOA Margin (%)	15.55	19.14	9.09	-0.13	14.85
Return on Networth / Equity (%)	21.34	36.50	18.20	-0.22	26.67
Return on Capital Employeed (%)	25.29	45.00	18.75	2.01	18.70
Return On Assets (%)	13.52	22.51	9.18	-0.09	11.46
Long Term Debt / Equity (X)	0.04	0.02	0.13	0.29	0.38
Total Debt / Equity (X)	0.07	0.07	0.26	0.36	0.44
Asset Turnover Ratio (%)	0.95	0.93	0.72	0.49	0.91
Current Ratio (X)	2.93	2.65	1.63	1.33	1.45
Quick Ratio (X)	2.14	2.02	1.13	0.78	0.67
Inventory Turnover Ratio (X)	3.65	3.46	3.00	1.75	2.77
Dividend Payout Ratio (NP) (%)	9.54	4.20	2.15	0.00	21.51
Dividend Payout Ratio (CP) (%)	7.53	3.50	1.27	0.00	14.02
Earning Retention Ratio (%)	90.46	95.80	97.85	0.00	78.49
Cash Earning Retention Ratio (%)	92.47	96.50	98.73	0.00	85.98
Interest Coverage Ratio (X)	52.82	46.39	11.78	3.96	8.94
Interest Coverage Ratio (Post Tax) (X)	33.89	30.74	6.89	0.99	6.42
Enterprise Value (Cr.)	4691.17	4111.05	2941.59	2324.01	1615.83
EV / Net Operating Revenue (X)	1.05	0.83	0.87	1.04	0.64
EV / EBITDA (X)	3.72	2.39	4.25	8.38	2.41
MarketCap / Net Operating Revenue (X)	0.88	0.71	0.65	0.70	0.34
Retention Ratios (%)	90.45	95.79	97.84	0.00	78.48
Price / BV (X)	1.21	1.36	1.31	1.14	0.61
Price / Net Operating Revenue (X)	0.88	0.71	0.65	0.70	0.34
EarningsYield	0.17	0.26	0.13	0.00	0.43

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 (%)

West Coast Paper Mills Ltd Valuation Ratios

Fair Value

Fair Value: 699.30

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: 12.43% compared to the current price 622

Intrinsic Value: 825.75

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: 32.76% compared to the current price 622

Last 5 Year EPS CAGR: 18.08%

*Investments are subject to market risks

Strength and Weakness of West Coast Paper Mills Ltd Stock

Strength	Weakness
The stock has a high average ROCE of 21.00%, which is a positive sign. The company has higher reserves (1,732.43 cr) compared to borrowings (441.43 cr), indicating strong financial stability. The company has shown consistent growth in sales (2.43 cr) and profit (191.57 cr) over the years.	The stock has a high average Working Capital Days of 36.17, which may not be favorable. 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 all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in West Coast Paper Mills Ltd:
1. ✓ Net Profit Margin: 17.67%
  - 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: 25.29% (Industry Average ROCE: 27.81%)
  - 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%: 21.34% (Industry Average ROE: 87.56%)
  - 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): 33.89
  - 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: 2.14
  - 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: 5.92 (Industry average Stock P/E: 451.42)
  - 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: 0.07
  - 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 is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
Stock Rating: ★★★★☆

FAQ

What is the latest fair value of West Coast Paper Mills Ltd?

The latest fair value of West Coast Paper Mills Ltd is ₹699.30.

What is the Market Cap of West Coast Paper Mills Ltd?

The Market Cap of West Coast Paper Mills Ltd is 4,109 Cr..

What is the current Stock Price of West Coast Paper Mills Ltd as on 27 July 2024?

The current stock price of West Coast Paper Mills Ltd as on 27 July 2024 is 622.

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

In FY 2024, the High / Low of West Coast Paper Mills Ltd stocks is 815/466.

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

The Stock P/E of West Coast Paper Mills Ltd is 5.92.

What is the Book Value of West Coast Paper Mills Ltd?

The Book Value of West Coast Paper Mills Ltd is 490.

What is the Dividend Yield of West Coast Paper Mills Ltd?

The Dividend Yield of West Coast Paper Mills Ltd is 1.29 %.

What is the ROCE of West Coast Paper Mills Ltd?

The ROCE of West Coast Paper Mills Ltd is 29.3 %.

What is the ROE of West Coast Paper Mills Ltd?

The ROE of West Coast Paper Mills Ltd is 23.8 %.

What is the Face Value of West Coast Paper Mills Ltd?

The Face Value of West Coast Paper Mills Ltd is 2.00.