Check Before You Invest : Seshasayee Paper and Boards Ltd

Q: Which industry/sub-sector does Seshasayee Paper and Boards Ltd belong to?

Seshasayee Paper and Boards Ltd belongs to the Paper & Stationary sector, operating specifically within the Paper & Paper Products segment.

Q: Is Seshasayee Paper and Boards Ltd a good quality company?

Seshasayee Paper and Boards Ltd is a good quality company, based on a consistently good 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: Is Seshasayee Paper and Boards Ltd undervalued or overvalued?

Seshasayee Paper and Boards Ltd appears Somewhat 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. Price to Earnings, Current: 21.97, Historic Median: 10.04. Price to Book, Current: 0.86, Historic Median: 1.05. Price to Sales, Current: 1.03, Historic Median: 1.03. EV to EBITDA, Current: 7.84, Historic Median: 4.93

Q: Is Seshasayee Paper and Boards Ltd a good buy now?

Seshasayee Paper and Boards 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

Q: Revenue growth of Seshasayee Paper and Boards Ltd?

Seshasayee Paper and Boards Ltd revenue growth is -2.6% for FY-2025, which is below its 5-year CAGR of 8.18%, indicating slower growth.

Q: Gross Profit margin of Seshasayee Paper and Boards Ltd?

Seshasayee Paper and Boards Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.3% for FY-2025, which is below its 5-year median of 15.1%, indicating decreasing margins.

Q: Operating Profit Margin of Seshasayee Paper and Boards Ltd?

Seshasayee Paper and Boards Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 6.42% for FY-2025, which is below its 5-year median of 13.76% indicating decreasing margins.

Q: Net Profit Margin of Seshasayee Paper and Boards Ltd?

Seshasayee Paper and Boards Ltd Net Profit Margin is 5.96% for FY-2025, is below its 5-year median of 12.83%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 9.3, Historic Median: 15.1. Operating Profit Margin (%), Current: 6.42, Historic Median: 13.76. Net Profit Margin (%), Current: 5.96, Historic Median: 12.83

Q: Return on Asset of Seshasayee Paper and Boards Ltd?

Seshasayee Paper and Boards Ltd Return on Asset is 4.39%, which is below its 5-year historical median of 6.94%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Seshasayee Paper and Boards Ltd?

Seshasayee Paper and Boards Ltd Return on capital employed is 7.07% for FY-2025, which is below its 5-year historical median of 12.2%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : Seshasayee Paper and Boards Ltd

Snapshot

Q.1 Which industry/sub-sector does Seshasayee Paper and Boards Ltd belong to?

Seshasayee Paper and Boards Ltd belongs to the Paper & Stationary sector, operating specifically within the Paper & Paper Products segment.

Q.2 Is Seshasayee Paper and Boards Ltd a good quality company?

Seshasayee Paper and Boards Ltd is a good quality company, based on a consistently good 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 Seshasayee Paper and Boards Ltd undervalued or overvalued?

Seshasayee Paper and Boards Ltd appears Somewhat 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	21.97	10.04
Price to Book	0.86	1.05
Price to Sales	1.03	1.03
EV to EBITDA	7.84	4.93

Q.4 Is Seshasayee Paper and Boards Ltd a good buy now?

Seshasayee Paper and Boards 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

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 Seshasayee Paper and Boards Ltd?

Seshasayee Paper and Boards Ltd revenue growth is -2.6% for FY-2025, which is below its 5-year CAGR of 8.18%, indicating slower growth.

Q.2 Gross Profit margin of Seshasayee Paper and Boards Ltd?

Seshasayee Paper and Boards Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.3% for FY-2025, which is below its 5-year median of 15.1%, indicating decreasing margins.

Q.3 Operating Profit Margin of Seshasayee Paper and Boards Ltd?

Seshasayee Paper and Boards Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 6.42% for FY-2025, which is below its 5-year median of 13.76% indicating decreasing margins.

Q.4 Net Profit Margin of Seshasayee Paper and Boards Ltd?

Seshasayee Paper and Boards Ltd Net Profit Margin is 5.96% for FY-2025, is below its 5-year median of 12.83%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	9.3	15.1
Operating Profit Margin (%)	6.42	13.76
Net Profit Margin (%)	5.96	12.83

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Seshasayee Paper and Boards Ltd?

Seshasayee Paper and Boards Ltd Return on Asset is 4.39%, which is below its 5-year historical median of 6.94%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Seshasayee Paper and Boards Ltd?

Seshasayee Paper and Boards Ltd Return on capital employed is 7.07% for FY-2025, which is below its 5-year historical median of 12.2%. 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 Seshasayee Paper and Boards Ltd?

Seshasayee Paper and Boards Ltd Return on equity is 5.58% for FY-2025, which is below its 5-year historical median of 9.61%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Seshasayee Paper and Boards Ltd?

Seshasayee Paper and Boards Ltd Cash conversion cycle is 34 days, above its 5-year historical median of 14 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)	0.78	0.88
ROE (%)	5.58	9.61
ROCE (%)	7.07	12.2
Cash Conversion Cycle	34 days	14 days

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

Q.9 Debt to Equity ratio of Seshasayee Paper and Boards Ltd?

Seshasayee Paper and Boards Ltd Debt-to-Equity ratio is 0.04, which is lower the industry average of 0.48, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Seshasayee Paper and Boards Ltd?

Seshasayee Paper and Boards Ltd Debt to cash flow from operations is -1.34, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Seshasayee Paper and Boards Ltd?

Q.1 Promoter shareholding and pledge status of Seshasayee Paper and Boards Ltd?

Promoters hold 43.11% of the Seshasayee Paper and Boards Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Seshasayee Paper and Boards Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Seshasayee Paper and Boards Ltd vs industry peers?

Seshasayee Paper and Boards Ltd revenue CAGR is 8.18%, compared to the industry median CAGR of 5.29%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-2.6	5.3
Gross Profit Growth (%)	-55.5	3.9
Operating Profit Growth (%)	-67.4	0.8
Net Profit Growth (%)	-59.5	1.4

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.78	0.91
ROE (%)	5.58	4.81
ROCE (%)	7.07	7.06
Cash Conversion Cycle (days)	34.45	47

Valuation & price assessment

Q.1 Stock return of Seshasayee Paper and Boards Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 18.3% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	18.3%	10.3%	-2.8%	-0.1%

Q.2 Valuation ratios of Seshasayee Paper and Boards Ltd vs historical?

The current P/E ratio of 21.97 is higher than its historical median of 10.04, indicating that the stock is trading above 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	21.97	10.04	11.02
Price to Book	0.86	1.05	0.91
Price to Sales	1.03	1.03	0.72
EV to EBITDA	7.84	4.93	6.12

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Check Before You Invest : Seshasayee Paper and Boards Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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Check trending companies

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