Check Before You Invest : Orient Paper & Industries Ltd

Snapshot

Q.1 Which industry/sub-sector does Orient Paper & Industries Ltd belong to?

Orient Paper & Industries Ltd belongs to the Paper & Stationary sector, operating specifically within the Paper & Paper Products segment.

Q.2 Is Orient Paper & Industries Ltd a good quality company?

Orient Paper & Industries Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Orient Paper & Industries Ltd undervalued or overvalued?

Orient Paper & Industries Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Orient Paper & Industries Ltd a good buy now?

Orient Paper & Industries Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Orient Paper & Industries Ltd?

Orient Paper & Industries Ltd revenue growth is 7.7% for FY-2025, which is below its 5-year CAGR of 8.11%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Orient Paper & Industries Ltd?

Orient Paper & Industries Ltd Return on capital employed is -2.92% for FY-2025, which is below its 5-year historical median of -2.35%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Orient Paper & Industries Ltd?

Orient Paper & Industries Ltd Return on Asset is -2.25%, which is below its 5-year historical median of -1.39%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Orient Paper & Industries Ltd?

Orient Paper & Industries Ltd Return on equity is -3.47% for FY-2025, which is below its 5-year historical median of -1.91%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Orient Paper & Industries Ltd?

Orient Paper & Industries Ltd Cash conversion cycle is 18 days, above its 5-year historical median of 12 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	0.37	0.36
ROE	-3.47	-1.91
ROCE	-2.92	-2.35
Cash Conversion Cycle	18 days	12 days

Q.6 Gross Profit margin of Orient Paper & Industries Ltd?

Orient Paper & Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is -4.2% for FY-2025, which is below its 5-year median of -2.2%, indicating decreasing margins.

Q.7 Operating Profit Margin of Orient Paper & Industries Ltd?

Orient Paper & Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -1.64% for FY-2025, which is in line with its 5-year median of -1.64% indicating stable margins.

Q.8 Net Profit Margin of Orient Paper & Industries Ltd?

Orient Paper & Industries Ltd Net Profit Margin is -6.1% for FY-2025, is below with its 5-year median of -4.93%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	-4.2	-2.2
Operating Profit Margin	-1.64	-1.64
Net Profit Margin	-6.1	-4.93

Q.9 Debt to Equity ratio of Orient Paper & Industries Ltd?

Orient Paper & Industries Ltd Debt-to-Equity ratio is 0.26, which is lower with the industry average of 0.57, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Orient Paper & Industries Ltd?

Orient Paper & Industries Ltd Debt to cash flow from operations is -32.41, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Orient Paper & Industries Ltd?

Promoters hold 38.74% of the Orient Paper & Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Orient Paper & Industries Ltd vs industry peers?

Orient Paper & Industries Ltd revenue CAGR is 8.11%, compared to the industry median CAGR of 6.51%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	7.7	6.5
Gross Profit Growth	-166.7	6.4
Operating Profit Growth	-134.4	3
Net Profit Growth	-1,016.7	1.4

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.37	0.93
ROE	-3.47	8.69
ROCE	-2.92	8.02
Cash Conversion Cycle (days)	18.3	56

Valuation & price assessment

Q.1 Stock return of Orient Paper & Industries Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of -7.5% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-7.5%	-7%	-23.3%	-17.3%

Q.3 Valuation ratios of Orient Paper & Industries Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 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	-	16.38	11.49
Price to Book	0.27	0.45	0.95
Price to Sales	0.46	1.03	0.72
EV to EBITDA	-18.85	6.13	6.16

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