Check Before You Invest : Shree Karthik Papers Ltd

Snapshot

Q.1 Which industry/sub-sector does Shree Karthik Papers Ltd belong to?

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

Q.2 Is Shree Karthik Papers Ltd a good quality company?

Shree Karthik Papers Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Shree Karthik Papers Ltd undervalued or overvalued?

Shree Karthik Papers Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Shree Karthik Papers Ltd a good buy now?

Shree Karthik Papers 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 Karthik Papers Ltd?

Shree Karthik Papers Ltd revenue growth is -10.9% for FY-2025, which is below its 5-year CAGR of 5.51%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Shree Karthik Papers Ltd?

Shree Karthik Papers Ltd Return on capital employed is 3.67% for FY-2025, which is below its 5-year historical median of 4.02%. 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 Karthik Papers Ltd?

Shree Karthik Papers Ltd Return on Asset is 0.8%, which is in line with its 5-year historical median of 0.8%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Shree Karthik Papers Ltd?

Shree Karthik Papers Ltd Return on equity is 11.04% for FY-2025, which is in line with its 5-year historical median of 11.04%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Shree Karthik Papers Ltd?

Shree Karthik Papers Ltd Cash conversion cycle is 20 days, below its 5-year historical median of 31 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.65	1.65
ROE	11.04	11.04
ROCE	3.67	4.02
Cash Conversion Cycle	20 days	31 days

Q.6 Gross Profit margin of Shree Karthik Papers Ltd?

Shree Karthik Papers Ltd Gross profit margin which is the profit after deduction of direct costs, is 2.1% for FY-2025, which is in line with its 5-year median of 2.1%, indicating stable margins.

Q.7 Operating Profit Margin of Shree Karthik Papers Ltd?

Shree Karthik Papers Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 2.69% for FY-2025, which is below its 5-year median of 3.22% indicating decreasing margins.

Q.8 Net Profit Margin of Shree Karthik Papers Ltd?

Shree Karthik Papers Ltd Net Profit Margin is 0.48% for FY-2025, is in line with with its 5-year median of 0.48%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	2.1	2.1
Operating Profit Margin	2.69	3.22
Net Profit Margin	0.48	0.48

Q.9 Debt to Equity ratio of Shree Karthik Papers Ltd?

Shree Karthik Papers Ltd Debt-to-Equity ratio is 7.93, 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 Karthik Papers Ltd?

Shree Karthik Papers Ltd Debt to cash flow from operations is 17.98, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Shree Karthik Papers Ltd?

Promoters hold 74.52% of the Shree Karthik Papers Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Shree Karthik Papers Ltd vs industry peers?

Shree Karthik Papers Ltd revenue CAGR is 5.51%, compared to the industry median CAGR of 6.51%, indicating stable growth and maintaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-10.9	6.5
Gross Profit Growth	-10.5	6.4
Operating Profit Growth	-25.8	3
Net Profit Growth	-17.7	1.4

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.65	0.93
ROE	11.04	8.69
ROCE	3.67	8.02
Cash Conversion Cycle (days)	19.71	56

Valuation & price assessment

Q.1 Stock return of Shree Karthik Papers Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 10.5% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	10.5%	25.2%	-1.8%	-30.1%

Q.3 Valuation ratios of Shree Karthik Papers 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	-	54.98	11.49
Price to Book	4.58	7.14	0.95
Price to Sales	0.2	0.30	0.72
EV to EBITDA	46.83	21.10	6.16

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