Check Before You Invest : Shree Ajit Pulp & Paper Ltd

Snapshot

Q.1 Which industry/sub-sector does Shree Ajit Pulp & Paper Ltd belong to?

Shree Ajit Pulp & Paper Ltd belongs to the Paper & Stationary sector, operating specifically within the Paper & Paper Products segment.

Q.2 Is Shree Ajit Pulp & Paper Ltd a good quality company?

Shree Ajit Pulp & Paper Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Shree Ajit Pulp & Paper Ltd undervalued or overvalued?

Shree Ajit Pulp & Paper Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Shree Ajit Pulp & Paper Ltd a good buy now?

Shree Ajit Pulp & Paper 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

Q.1 Revenue growth of Shree Ajit Pulp & Paper Ltd?

Shree Ajit Pulp & Paper Ltd revenue growth is 71.6% for FY-2025, which is above its 5-year CAGR of 16.03%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Shree Ajit Pulp & Paper Ltd?

Shree Ajit Pulp & Paper Ltd Return on capital employed is 7.42% for FY-2025, which is in line with its 5-year historical median of 7.42%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Shree Ajit Pulp & Paper Ltd?

Shree Ajit Pulp & Paper Ltd Return on Asset is 1.63%, which is below its 5-year historical median of 2.94%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Shree Ajit Pulp & Paper Ltd?

Shree Ajit Pulp & Paper Ltd Return on equity is 3.96% for FY-2025, which is below its 5-year historical median of 5.72%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Shree Ajit Pulp & Paper Ltd?

Shree Ajit Pulp & Paper Ltd Cash conversion cycle is 65 days, in line with its 5-year historical median of 65 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.88	0.97
ROE	3.96	5.72
ROCE	7.42	7.42
Cash Conversion Cycle	65 days	65 days

Q.6 Gross Profit margin of Shree Ajit Pulp & Paper Ltd?

Shree Ajit Pulp & Paper Ltd Gross profit margin which is the profit after deduction of direct costs, is 6% for FY-2025, which is below its 5-year median of 6.8%, indicating decreasing margins.

Q.7 Operating Profit Margin of Shree Ajit Pulp & Paper Ltd?

Shree Ajit Pulp & Paper Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 10.1% for FY-2025, which is in line with its 5-year median of 10.1% indicating stable margins.

Q.8 Net Profit Margin of Shree Ajit Pulp & Paper Ltd?

Shree Ajit Pulp & Paper Ltd Net Profit Margin is 1.86% for FY-2025, is below with its 5-year median of 3.04%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	6	6.8
Operating Profit Margin	10.1	10.1
Net Profit Margin	1.86	3.04

Q.9 Debt to Equity ratio of Shree Ajit Pulp & Paper Ltd?

Shree Ajit Pulp & Paper Ltd Debt-to-Equity ratio is 1.15, which is above with the industry average of 0.57, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Shree Ajit Pulp & Paper Ltd?

Shree Ajit Pulp & Paper Ltd Debt to cash flow from operations is 35.69, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Shree Ajit Pulp & Paper Ltd?

Promoters hold 59.60% of the Shree Ajit Pulp & Paper Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Shree Ajit Pulp & Paper Ltd vs industry peers?

Shree Ajit Pulp & Paper Ltd revenue CAGR is 16.03%, 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	71.6	6.5
Gross Profit Growth	50	6.4
Operating Profit Growth	142.9	3
Net Profit Growth	12.5	1.4

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.88	0.93
ROE	3.96	8.69
ROCE	7.42	8.02
Cash Conversion Cycle (days)	65.34	56

Valuation & price assessment

Q.1 Stock return of Shree Ajit Pulp & Paper Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 14.8% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	14.8%	9.6%	18%	62.4%

Q.3 Valuation ratios of Shree Ajit Pulp & Paper Ltd vs historical?

The current P/E is similar 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	11.35	11.55	11.49
Price to Book	1.03	0.82	0.95
Price to Sales	0.41	0.44	0.72
EV to EBITDA	6.29	6.26	6.16

Check more companies

1. JK Paper

10. Kuantum Papers

Check trending companies

1. Hexaware Technologies Ltd.

2. Newgen Software Technologies Ltd.

3. LTM Ltd.

4. Sona BLW Precision Forgings Ltd.

5. Motilal Oswal Financial Services Ltd.