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Check Before You Invest : Astron Paper & Board Mill Ltd

BSE: 540824 NSE: ASTRON ISIN: INE646X01014
  |   Sector:  Paper & Stationary   |   Industry:  Paper & Paper Products

Snapshot

Q.1 Which industry/sub-sector does Astron Paper & Board Mill Ltd belong to?
Astron Paper & Board Mill Ltd belongs to the Paper & Stationary sector, operating specifically within the Paper & Paper Products segment.
Q.2 Is Astron Paper & Board Mill Ltd a good quality company?
Astron Paper & Board Mill Ltd is a quality company, based on a multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Astron Paper & Board Mill Ltd undervalued or overvalued?
Astron Paper & Board Mill Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings - -
Price to Book 0.23 0.81
Price to Sales 5.37 0.39
EV to EBITDA -48.08 6.00
Q.4 Is Astron Paper & Board Mill Ltd a good buy now?
Astron Paper & Board Mill Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Astron Paper & Board Mill Ltd?
Astron Paper & Board Mill Ltd revenue growth is -69.1% for FY-2025, which is below its 5-year CAGR of -23.2%, indicating slower growth.

Q.2 Gross Profit margin of Astron Paper & Board Mill Ltd?
Astron Paper & Board Mill Ltd Gross profit margin which is the profit after deduction of direct costs, is -46% for FY-2025, which is below its 5-year median of -1.9%, indicating decreasing margins.

Q.3 Operating Profit Margin of Astron Paper & Board Mill Ltd?
Astron Paper & Board Mill Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -34.33% for FY-2025, which is below its 5-year median of 1.14% indicating decreasing margins.

Q.4 Net Profit Margin of Astron Paper & Board Mill Ltd?
Astron Paper & Board Mill Ltd Net Profit Margin is -54.51% for FY-2025, is below its 5-year median of -2.83%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) -46 -1.9
Operating Profit Margin (%) -34.33 1.14
Net Profit Margin (%) -54.51 -2.83

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Astron Paper & Board Mill Ltd?
Astron Paper & Board Mill Ltd Return on Asset is -20.43%, which is below its 5-year historical median of -2.95%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Astron Paper & Board Mill Ltd?
Astron Paper & Board Mill Ltd Return on capital employed is -19.27% for FY-2025, which is below its 5-year historical median of -0.72%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Astron Paper & Board Mill Ltd?
Astron Paper & Board Mill Ltd Return on equity is -41.52% for FY-2025, which is below its 5-year historical median of -5.61%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Astron Paper & Board Mill Ltd?
Astron Paper & Board Mill Ltd Cash conversion cycle is 96 days, above its 5-year historical median of 44 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.38 1.41
ROE (%) -41.52 -5.61
ROCE (%) -19.27 -0.72
Cash Conversion Cycle 96 days 44 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Astron Paper & Board Mill Ltd?
Astron Paper & Board Mill Ltd Debt-to-Equity ratio is 0.76, which is above the industry average of 0.48, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Astron Paper & Board Mill Ltd?
Astron Paper & Board Mill Ltd Debt to cash flow from operations is 24.87, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Astron Paper & Board Mill Ltd?

Q.1 Promoter shareholding and pledge status of Astron Paper & Board Mill Ltd?
Promoters hold 25.37% of the Astron Paper & Board Mill Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Astron Paper & Board Mill Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Astron Paper & Board Mill Ltd vs industry peers?
Astron Paper & Board Mill Ltd revenue CAGR is -23.20%, compared to the industry median CAGR of 5.29%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -69.1 5.3
Gross Profit Growth (%) 0 3.9
Operating Profit Growth (%) -1,193.1 0.8
Net Profit Growth (%) 0 1.4
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.38 0.91
ROE (%) -41.52 4.81
ROCE (%) -19.27 7.06
Cash Conversion Cycle (days) 96.4 47

Valuation & price assessment

Q.1 Stock return of Astron Paper & Board Mill Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of -36.99% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- -37% -45.5% -77.6%
Q.2 Valuation ratios of Astron Paper & Board Mill Ltd vs historical?
The current P/E ratio of 0 is in line with than its historical median of , indicating that the stock is trading near its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings - - 11.02
Price to Book 0.23 0.81 0.91
Price to Sales 5.37 0.39 0.72
EV to EBITDA -48.08 6.00 6.12

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