Seshasayee Paper and Boards Ltd - Stock Valuation and Financial Performance

BSE: 502450 | NSE: SESHAPAPER | Paper & Paper Products | Small Cap

Seshasayee Paper Share Price

299.10 2.60 0.88%
as on 23-Dec'24 12:35

DeciZen - make an informed investing decision on Seshasayee Paper

Overall Rating
Bole Toh

1. Quality

2. Valuation

Somewhat overvalued

3. Price Trend

Semi Strong

Seshasayee Paper and Boards stock performance -

mw4me loader
P/E Ratio (SA):
10.27
Market Cap:
1,870 Cr.
52-wk low:
278.4
52-wk high:
382

Is Seshasayee Paper and Boards Ltd an attractive stock to invest in?

1. Is Seshasayee Paper and Boards Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Seshasayee Paper and Boards Ltd is a good quality company.

2. Is Seshasayee Paper and Boards Ltd undervalued or overvalued?

The key valuation ratios of Seshasayee Paper and Boards Ltd's currently when compared to its past seem to suggest it is in the Somewhat overvalued zone.

3. Is Seshasayee Paper and Boards Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Seshasayee Paper and Boards Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Seshasayee Paper:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Seshasayee Paper and Boards Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
ROCE % 8.4%11.4%25.9%23.6%31.4%26%8.5%12.2%37.3%20.2%-
Value Creation
Index
-0.4-0.20.90.71.20.9-0.4-0.11.70.5-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 1,0141,0251,1081,1051,3251,1847821,3552,0831,8021,833
Sales YoY Gr.-1.1%8%-0.3%20%-10.7%-34%73.3%53.7%-13.5%-
Adj EPS 3.15.620.3193028.115.61661.541.128.9
YoY Gr.-81.4%260.5%-6.7%58.1%-6.5%-44.5%2.8%283.9%-33.1%-
BVPS (₹) 62.366.892.3111.3137.6163.8183200.3261.8305.2299.5
Adj Net
Profit
19.635.612812018917798.2101388259182
Cash Flow from Ops. 105112200225273165-7.1276328202-
Debt/CF from Ops. 3.12.70.90.70.40.1-1.1000.1-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 6.6%6.3%32.1%-13.5%
Adj EPS 33.2%6.5%38.2%-33.1%
BVPS19.3%17.3%18.6%16.6%
Share Price 20.5% 12.2% 25.9% -15.9%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
Return on
Equity %
58.725.618.624.119.19.48.827.915.29.5
Op. Profit
Mgn %
8.810.419.318.822.32313.812.225.718.912.8
Net Profit
Mgn %
1.93.511.610.814.314.912.67.518.614.49.9
Debt to
Equity
0.80.70.30.20.1000000
Working Cap
Days
1281331109883891518872121112
Cash Conv.
Cycle
5-4-9-8-24-18396-41481

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 32.08%

Net Profit is growing at healthy rate in last 3 years 38.23%

Return on Equity has declined versus last 3 years average to 9.50%

Sales growth is not so good in last 4 quarters at -2.94%

Latest Financials - Seshasayee Paper and Boards Ltd.

Standalone Consolidated
TTM EPS (₹) 28.9 30.3
TTM Sales (₹ Cr.) 1,833 1,834
BVPS (₹.) 299.5 311.6
Reserves (₹ Cr.) 1,876 1,953
P/BV 0.99 0.95
PE 10.27 9.78
From the Market
52 Week Low / High (₹) 278.35 / 382.00
All Time Low / High (₹) 2.69 / 421.75
Market Cap (₹ Cr.) 1,870
Equity (₹ Cr.) 12.6
Face Value (₹) 2
Industry PE 11.5

Management X-Ray of Seshasayee Paper:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Seshasayee Paper

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Sales1,0141,0251,1081,1051,3251,1847821,3552,0831,802
Operating Expenses 9259188948971,0299176741,1891,5481,462
Manufacturing Costs351330340382449432323480696660
Material Costs424428409393447331201521635617
Employee Cost 64807068698281859893
Other Costs 8581755564726810412092
Operating Profit 89107214207296267108166534340
Operating Profit Margin (%) 8.8%10.4%19.3%18.8%22.3%22.5%13.8%12.2%25.6%18.9%
Other Income 6489232319173151
Interest 373223141473332
Depreciation 29293132343538414544
Exceptional Items -3005000000
Profit Before Tax 255016817527124886139516345
Tax 81540528174-143513086
Profit After Tax 1736128123190173100103387259
PAT Margin (%) 1.7%3.5%11.6%11.1%14.3%14.7%12.8%7.6%18.6%14.4%
Adjusted EPS (₹)2.85.620.319.530.128.816.717.164.243.1
Dividend Payout Ratio (%)29%18%10%15%13%14%15%15%9%12%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Equity and Liabilities

Shareholders Fund 3934215827028689861,1021,2061,5761,838
Share Capital 13131313131212121212
Reserves 3804085696898559741,0901,1941,5641,825
Minority Interest0000000000
Debt2842551179251731021
Long Term Debt158157117925173100
Short Term Debt12697000000021
Trade Payables226221188236259195171196233259
Others Liabilities 198216208227233227200208210200
Total Liabilities 1,1011,1121,0951,2571,4111,4151,4761,6102,0202,317

Fixed Assets

Gross Block1,0751,0386687357688069031,0241,0491,073
Accumulated Depreciation427413316296131169209254297
Net Fixed Assets648625637673672675734815796776
CWIP 13504127233132142035
Investments 343884999584126143152189
Inventories134114129158135169227124241288
Trade Receivables12412910610679818210195119
Cash Equivalents 101019143311325206329496607
Others Assets137145805296497084220304
Total Assets 1,1011,1121,0951,2571,4111,4151,4761,6102,0202,317

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Cash Flow From Operating Activity 105112200225273165-7276328202
PBT 255016817527124886139516345
Adjustment 696157393323323421-3
Changes in Working Capital 120-64625-60-108132-79-45
Tax Paid -20-19-34-57-46-17-29-129-96
Cash Flow From Investing Activity -20-46-38-50-16-26-53-251-372-225
Capex -19-43-33-53-30-46-101-104-32-36
Net Investments -2-4-111129-156-261-233
Others 10-411319189-7943
Cash Flow From Financing Activity -104-65-153-51-89-124-31-22-22-19
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing 000-19-50-850000
Interest Paid -37-32-21-13-12-6-2-2-2-2
Dividend Paid -5-5-8-13-23-25-25-16-16-38
Others -62-28-124-6-4-8-3-4-421
Net Cash Flow -200912416815-913-66-42
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Ratios
ROE (%)4.468.7425.5319.1524.2118.719.618.9427.7915.2
ROCE (%)8.3811.4425.9223.6331.4125.978.4812.237.2820.24
Asset Turnover Ratio0.970.971.060.991.040.880.570.921.210.88
PAT to CFO Conversion(x)6.183.111.561.831.440.95-0.072.680.850.78
Working Capital Days
Receivable Days42433733252336241621
Inventory Days42423845394588453051
Payable Days173190182197202250332129123146

Seshasayee Paper and Boards Ltd Stock News

Seshasayee Paper and Boards Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Seshasayee Paper on 23-Dec-2024 12:35 is ₹299.1.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 23-Dec-2024 12:35 the market cap of Seshasayee Paper stood at ₹1,870.
The latest P/E ratio of Seshasayee Paper as of 23-Dec-2024 12:35 is 10.27.
The latest P/B ratio of Seshasayee Paper as of 23-Dec-2024 12:35 is 0.99.
The 52-week high of Seshasayee Paper is ₹382.0 and the 52-week low is ₹278.4.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Seshasayee Paper is ₹1,833 ( Cr.) .

About Seshasayee Paper and Boards Ltd

Seshasayee Paper and Boards (SPB), incorporated in June 1960, was promoted by Seshasayee Brothers (Pvt) Limited in association with a foreign collaborator M/s Parsons and Whittemore, South East Asia Inc, USA. After commencement of commercial production, having fulfilled their performance guarantee obligations, the foreign collaborators withdrew in 1969.

SPB, the flagship company belonging to 'ESVIN GROUP', operates an integrated pulp, paper and paper board Mill at Pallipalayam, Erode, District Namakkal, Tamilnadu, India.

SPB commenced commercial production in December 1962, on commissioning a 20,000 tonne per annum (tpa) integrated facility, comprising a Pulp Mill and two Paper Machines (PM-1 and PM-2), capable of producing, writing, printing, craft and poster varieties of paper.

The plant capacity was expanded to 35000 tpa in 1967-68, by modification of PM-2 and addition of a third Paper Machine (PM-3). The cost of the expansion scheme, at Rs 34 millions was part financed by All India Financial Institutions (Rs 31 million).

In the second stage of expansion, undertaken in 1976, capacity was enhanced to 55000 tpa, through addition of a 60 tpd new Paper Machine (PM-4). Cost of the project, including cost of a Chemical Recovery Boiler and other facilities for enhanced requirement of utilities, was estimated at Rs. 176 million. The same was part financed by term loans from Institutions and banks to the extent of Rs 145 million and the balance out of internal generation.

SPB undertook various equipment balancing and modernisation programmes, since then, for improving its operating efficiency, captive power generation capacity, etc., upto 1992-93.

The company embarked on an Expansion / Modernisation Project to enhance its production capacity from 60000 tonnes per annum, to 1,15,000 tonnes per annum and to upgrade some of the existing facilities, at an estimated cost of Rs 1890 million.

The said Expansion / Modernisation Project was completed in December 2000. After successful trials, the commercial production out of the new Paper Machine commenced on July 1, 2000.The current installed capacity of the company stands at 1,15,000 tonnes per annum.

The company's paper plant was originally designed for using bagasse, as the primary raw material mixed with 20% bamboo fibre. Bagasse was being obtained from nearby sugar mill on substitution basis using oil fired boilers.

With sharp increase in oil prices in 1970-71, the company shifted over to the use of hardwood, at the time of its expansion undertaken in 1978. Raw material mix underwent a substantial change, with bamboo and hardwood forming 60% and 40%, respectively, of its raw material consumption.

Soon  the company started apprehending difficulties in procurement of bamboo. In 1981, it added one more digester, to increase the share of the hardwood in the furnish mix to 80% and restricting bamboo use to only 20%.

With the commissioning of more wood based industries in Tamilnadu, there was again an apprehension about availability of hardwood. As a long term strategy, the company at this time decided on restructuring use of bagasse which was seen to be the most reliable source of fibre for the entire Industry.

SPB's exports are nearly 20% of its production and is a significant exporter in the Indian Paper Industry. Due to its excellent export performance, SPB has been awarded 'Golden Export House' status.

In 2011 Seshasayee Paper and Boards acquired M/s Subburaj Papers Private Limited.

Product range of the company includes:

  • MF I And MF II
  • MG
  • Yankee
  • MF3

Awards & Achievements:

  • Capacity Utilisation Award
  • Energy Conservation Award
  • Environmental Protection Award
  • Safety Award
  • Export Performance Award
  • Good Industrial Relations Award
  • TERI - Corporate Environmental Award
  • The Company's quality systems to be covered by the 'ISO 9001' accreditation awarded by Det Norske Veritas, The Netherlands.
  • The Company has also been accredited with 'ISO 14001' certification by Det Norske Veritas, The Netherlands, for its Environmental Quality Systems.
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