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Last Updated on: 25 July, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
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

Basic Stock Data of West Coast Paper Mills Ltd

Last Updated: July 24, 2024, 11:40 pm

Market Cap 4,259 Cr.
Current Price 645
High / Low815/465
Stock P/E6.14
Book Value 490
Dividend Yield1.24 %
ROCE29.3 %
ROE23.8 %
Face Value 2.00
PEG Ratio0.34

Data Source: screener.in

Competitors of West Coast Paper Mills Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Encode Packaging India Ltd 4.27 Cr. 13.518.7/5.6738.8 10.60.00 %3.24 %3.34 % 10.0
Cella Space Ltd 27.1 Cr. 13.515.4/7.6929.2 10.30.00 %10.7 %% 10.0
Bandaram Pharma Packtech Ltd 36.0 Cr. 30.047.8/24.037.1 10.20.33 %9.10 %12.6 % 10.0
Agio Paper & Industries Ltd 9.16 Cr. 5.687.74/2.80 1.870.00 %0.90 %% 10.0
Star Paper Mills Ltd 394 Cr. 250288/1706.02 4151.40 %13.4 %10.5 % 10.0
Industry Average1,439.13 Cr150.63445.23135.190.71%27.81%87.56%6.61

West Coast Paper Mills Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales5769375389008721,0671,1141,2101,2391,3571,1391,1941,045
Expenses517774438758712836793843778865744884828
Operating Profit59163100142160231321367461493395310218
OPM %10%17%19%16%18%22%29%30%37%36%35%26%21%
Other Income581411112211172410353541
Interest211018111217671410766
Depreciation57615254545346474848444646
Profit before tax-14994488106183280331423444379294207
Tax %66%12%10%12%16%23%25%26%26%28%27%26%23%
Net Profit-587397888141209246311321278219159
EPS in Rs-0.4411.344.8410.9711.8218.8628.0632.5039.9342.1237.1728.8820.58

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

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,7101,9792,4932,2453,3784,9214,735
Expenses1,3481,4681,8751,9832,7403,2743,320
Operating Profit3625116182616381,6471,415
OPM %21%26%25%12%19%33%30%
Other Income182052125458122
Interest42297570593729
Depreciation116176198229213189184
Profit before tax222326397-264201,4781,324
Tax %-0%9%-2%83%18%26%
Net Profit223296406-43461,087977
EPS in Rs33.7944.8256.08-0.4746.49142.62128.75
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: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

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 2023Mar 2024
Cash from Operating Activity 3263946493385911,238764
Cash from Investing Activity -139-382-858-166-291-894-714
Cash from Financing Activity -194-12218-167-295-334-61
Net Cash Flow-6-195510-11

West Coast Paper Mills Ltd Free Cash Flow

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow47.00150.00-135.00-415.00160.00-230.00

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

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

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters56.35%56.45%56.47%56.48%56.48%56.51%56.52%56.53%56.53%56.53%56.53%56.53%
FIIs1.97%1.95%2.23%2.23%2.35%3.67%5.62%7.04%7.38%7.80%7.98%8.19%
DIIs8.39%8.48%8.44%8.80%8.76%7.46%7.60%7.57%7.18%6.77%6.62%7.13%
Public33.28%33.11%32.86%32.48%32.41%32.34%30.26%28.87%28.92%28.90%28.88%28.15%
No. of Shareholders32,77632,53730,05831,42634,31940,55042,76142,60352,02957,70657,19360,840

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 NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Nippon India Small Cap Fund3,348,3100.57259.833,348,3102024-07-210%
HSBC Flexi Cap Fund743,8001.457.723,348,3102024-07-21-77.79%
L&T Flexicap Fund - Regular Plan697,8801.4742.523,348,3102024-07-21-79.16%

West Coast Paper Mills Ltd ROCE Trend

West Coast Paper Mills Ltd EPS Trend

West Coast Paper Mills Ltd Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)104.77142.6246.49-0.4756.08
Diluted EPS (Rs.)104.77142.6246.49-0.4756.08
Cash EPS (Rs.)147.04193.2684.5434.0691.50
Book Value[Excl.RevalReserv]/Share (Rs.)576.90463.99308.11258.09258.02
Book Value[Incl.RevalReserv]/Share (Rs.)576.90463.99308.11258.09258.02
Revenue From Operations / Share (Rs.)673.39745.02511.39339.83377.43
PBDIT / Share (Rs.)191.11260.38104.7141.98101.41
PBIT / Share (Rs.)163.09231.6972.547.2671.46
PBT / Share (Rs.)159.47223.7563.65-3.9660.11
Net Profit / Share (Rs.)119.02164.5852.37-0.6661.54
NP After MI And SOA / Share (Rs.)104.77142.6246.49-0.4656.08
PBDIT Margin (%)28.3834.9420.4712.3526.87
PBIT Margin (%)24.2131.0914.182.1318.93
PBT Margin (%)23.6830.0312.44-1.1615.92
Net Profit Margin (%)17.6722.0910.24-0.1916.30
NP After MI And SOA Margin (%)15.5519.149.09-0.1314.85
Return on Networth / Equity (%)21.3436.5018.20-0.2226.67
Return on Capital Employeed (%)25.2945.0018.752.0118.70
Return On Assets (%)13.5222.519.18-0.0911.46
Long Term Debt / Equity (X)0.040.020.130.290.38
Total Debt / Equity (X)0.070.070.260.360.44
Asset Turnover Ratio (%)0.950.930.720.490.91
Current Ratio (X)2.932.651.631.331.45
Quick Ratio (X)2.142.021.130.780.67
Inventory Turnover Ratio (X)3.653.463.001.752.77
Dividend Payout Ratio (NP) (%)9.544.202.150.0021.51
Dividend Payout Ratio (CP) (%)7.533.501.270.0014.02
Earning Retention Ratio (%)90.4695.8097.850.0078.49
Cash Earning Retention Ratio (%)92.4796.5098.730.0085.98
Interest Coverage Ratio (X)52.8246.3911.783.968.94
Interest Coverage Ratio (Post Tax) (X)33.8930.746.890.996.42
Enterprise Value (Cr.)4691.174111.052941.592324.011615.83
EV / Net Operating Revenue (X)1.050.830.871.040.64
EV / EBITDA (X)3.722.394.258.382.41
MarketCap / Net Operating Revenue (X)0.880.710.650.700.34
Retention Ratios (%)90.4595.7997.840.0078.48
Price / BV (X)1.211.361.311.140.61
Price / Net Operating Revenue (X)0.880.710.650.700.34
EarningsYield0.170.260.130.000.43

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: 724.93

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: 12.39% compared to the current price 645

Intrinsic Value: 856.02

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: 32.72% compared to the current price 645

Last 5 Year EPS CAGR: 18.08%

*Investments are subject to market risks

Strength and Weakness of West Coast Paper Mills Ltd Stock

StrengthWeakness
  1. The stock has a high average ROCE of 21.00%, which is a positive sign.
  2. The company has higher reserves (1,732.43 cr) compared to borrowings (441.43 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 has a high average Working Capital Days of 36.17, which may not be favorable.
  2. 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: 6.14 (Industry average Stock P/E: 445.34)
      • 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 ₹724.93.

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

The Market Cap of West Coast Paper Mills Ltd is 4,259 Cr..

What is the current Stock Price of West Coast Paper Mills Ltd as on 25 July 2024?

The current stock price of West Coast Paper Mills Ltd as on 25 July 2024 is 645.

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 815/465.

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

The Stock P/E of West Coast Paper Mills Ltd is 6.14.

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 1.24 %.

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.

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