Check Before You Invest : South India Paper Mills Ltd

Q: Which industry/sub-sector does South India Paper Mills Ltd belong to?

South India Paper Mills Ltd belongs to the Paper & Stationary sector, operating specifically within the Paper & Paper Products segment.

Q: Is South India Paper Mills Ltd a good quality company?

South India Paper Mills Ltd is a weak quality company, based on a inconsistent 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 South India Paper Mills Ltd undervalued or overvalued?

South India Paper Mills Ltd appears Somewhat Undervalued, as its key valuation ratios are lower 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: 45.77, Historic Median: -. Price to Book, Current: 0.82, Historic Median: 0.88. Price to Sales, Current: 0.43, Historic Median: 0.60. EV to EBITDA, Current: 8.28, Historic Median: 8.80

Q: Is South India Paper Mills Ltd a good buy now?

South India Paper Mills 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

Q: Revenue growth of South India Paper Mills Ltd?

South India Paper Mills Ltd revenue growth is 18.3% for FY-2025, which is above its 5-year CAGR of 11.16%, indicating faster growth.

Q: Gross Profit margin of South India Paper Mills Ltd?

South India Paper Mills Ltd Gross profit margin which is the profit after deduction of direct costs, is 0.8% for FY-2025, which is in line with its 5-year median of 0.8%, indicating stable margins.

Q: Operating Profit Margin of South India Paper Mills Ltd?

South India Paper Mills Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 5.93% for FY-2025, which is in line with its 5-year median of 5.93% indicating stable margins.

Q: Net Profit Margin of South India Paper Mills Ltd?

South India Paper Mills Ltd Net Profit Margin is -2.61% for FY-2025, is in line with its 5-year median of -2.61%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 0.8, Historic Median: 0.8. Operating Profit Margin (%), Current: 5.93, Historic Median: 5.93. Net Profit Margin (%), Current: -2.61, Historic Median: -2.61

Q: Return on Asset of South India Paper Mills Ltd?

South India Paper Mills Ltd Return on Asset is -2.14%, which is in line with its 5-year historical median of -2.14%, indicating stable asset utilization efficiency.

Q: Return on capital employed (ROCE) of South India Paper Mills Ltd?

South India Paper Mills Ltd Return on capital employed is 1.79% for FY-2025, which is in line with its 5-year historical median of 1.79%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : South India Paper Mills Ltd

Snapshot

Q.1 Which industry/sub-sector does South India Paper Mills Ltd belong to?

South India Paper Mills Ltd belongs to the Paper & Stationary sector, operating specifically within the Paper & Paper Products segment.

Q.2 Is South India Paper Mills Ltd a good quality company?

South India Paper Mills Ltd is a weak quality company, based on a inconsistent 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 South India Paper Mills Ltd undervalued or overvalued?

South India Paper Mills Ltd appears Somewhat Undervalued, as its key valuation ratios are lower 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	45.77	-
Price to Book	0.82	0.88
Price to Sales	0.43	0.60
EV to EBITDA	8.28	8.80

Q.4 Is South India Paper Mills Ltd a good buy now?

South India Paper Mills 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 South India Paper Mills Ltd?

South India Paper Mills Ltd revenue growth is 18.3% for FY-2025, which is above its 5-year CAGR of 11.16%, indicating faster growth.

Q.2 Gross Profit margin of South India Paper Mills Ltd?

South India Paper Mills Ltd Gross profit margin which is the profit after deduction of direct costs, is 0.8% for FY-2025, which is in line with its 5-year median of 0.8%, indicating stable margins.

Q.3 Operating Profit Margin of South India Paper Mills Ltd?

South India Paper Mills Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 5.93% for FY-2025, which is in line with its 5-year median of 5.93% indicating stable margins.

Q.4 Net Profit Margin of South India Paper Mills Ltd?

South India Paper Mills Ltd Net Profit Margin is -2.61% for FY-2025, is in line with its 5-year median of -2.61%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	0.8	0.8
Operating Profit Margin (%)	5.93	5.93
Net Profit Margin (%)	-2.61	-2.61

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of South India Paper Mills Ltd?

South India Paper Mills Ltd Return on Asset is -2.14%, which is in line with its 5-year historical median of -2.14%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of South India Paper Mills Ltd?

South India Paper Mills Ltd Return on capital employed is 1.79% for FY-2025, which is in line with its 5-year historical median of 1.79%. 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 South India Paper Mills Ltd?

South India Paper Mills Ltd Return on equity is -4.47% for FY-2025, which is in line with its 5-year historical median of -4.47%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of South India Paper Mills Ltd?

South India Paper Mills Ltd Cash conversion cycle is 84 days, above its 5-year historical median of 79 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)	0.82	0.75
ROE (%)	-4.47	-4.47
ROCE (%)	1.79	1.79
Cash Conversion Cycle	84 days	79 days

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

Q.9 Debt to Equity ratio of South India Paper Mills Ltd?

South India Paper Mills Ltd Debt-to-Equity ratio is 0.83, 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 South India Paper Mills Ltd?

South India Paper Mills Ltd Debt to cash flow from operations is 4.34, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of South India Paper Mills Ltd?

Q.1 Promoter shareholding and pledge status of South India Paper Mills Ltd?

Promoters hold 27.81% of the South India Paper Mills Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does South India Paper Mills Ltd performance compare with that of its Peers?

Q.1 Revenue growth of South India Paper Mills Ltd vs industry peers?

South India Paper Mills Ltd revenue CAGR is 11.16%, 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 (%)	18.3	5.3
Gross Profit Growth (%)	0	3.9
Operating Profit Growth (%)	29.4	0.8
Net Profit Growth (%)	0	1.4

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.82	0.91
ROE (%)	-4.47	4.81
ROCE (%)	1.79	7.06
Cash Conversion Cycle (days)	83.8	47

Valuation & price assessment

Q.1 Stock return of South India Paper Mills Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of -1% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-1%	3.2%	-6.8%	21%

Q.2 Valuation ratios of South India Paper Mills Ltd vs historical?

The current P/E ratio of 45.77 is higher than its historical median of , 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	45.77	-	11.02
Price to Book	0.82	0.88	0.91
Price to Sales	0.43	0.60	0.72
EV to EBITDA	8.28	8.80	6.12

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Check Before You Invest : South India Paper Mills Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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