Check Before You Invest : Sangal Papers Ltd

Snapshot

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

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

Q.2 Is Sangal Papers Ltd a good quality company?

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

Q.3 Is Sangal Papers Ltd undervalued or overvalued?

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

Q.4 Is Sangal Papers Ltd a good buy now?

Sangal 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 Sangal Papers Ltd?

Sangal Papers Ltd revenue growth is -5.3% for FY-2025, which is below its 5-year CAGR of 7.48%, indicating slower growth.

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

Sangal Papers Ltd Return on capital employed is 9.52% for FY-2025, which is in line with its 5-year historical median of 9.22%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Sangal Papers Ltd?

Sangal Papers Ltd Return on Asset is 3.1%, which is above its 5-year historical median of 2.75%, indicating improved asset utilization efficiency.

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

Sangal Papers Ltd Return on equity is 6.65% for FY-2025, which is above its 5-year historical median of 6.2%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Sangal Papers Ltd?

Sangal Papers Ltd Cash conversion cycle is 71 days, above its 5-year historical median of 63 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	1.98	2.12
ROE	6.65	6.2
ROCE	9.52	9.22
Cash Conversion Cycle	71 days	63 days

Q.6 Gross Profit margin of Sangal Papers Ltd?

Sangal Papers Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.3% for FY-2025, which is above its 5-year median of 2.7%, indicating increasing margins.

Q.7 Operating Profit Margin of Sangal Papers Ltd?

Sangal Papers Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 4.52% for FY-2025, which is above its 5-year median of 3.12% indicating increasing margins.

Q.8 Net Profit Margin of Sangal Papers Ltd?

Sangal Papers Ltd Net Profit Margin is 1.57% for FY-2025, is above with its 5-year median of 1.3%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	3.3	2.7
Operating Profit Margin	4.52	3.12
Net Profit Margin	1.57	1.3

Q.9 Debt to Equity ratio of Sangal Papers Ltd?

Sangal Papers Ltd Debt-to-Equity ratio is 0.61, 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 Sangal Papers Ltd?

Sangal Papers Ltd Debt to cash flow from operations is 4.66, which is at a unhealthy level.

Ownership & governance

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

Promoters hold 39.48% of the Sangal Papers Ltd, with 38.76% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

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

Sangal Papers Ltd revenue CAGR is 7.48%, 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	-5.3	6.5
Gross Profit Growth	14.1	6.4
Operating Profit Growth	16.3	3
Net Profit Growth	14.6	1.4

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.98	0.93
ROE	6.65	8.69
ROCE	9.52	8.02
Cash Conversion Cycle (days)	71.18	56

Valuation & price assessment

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

Over the last 9 year(s), the stock has delivered a CAGR of 16.1% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	16.1%	20.5%	4.5%	-14.1%

Q.3 Valuation ratios of Sangal Papers Ltd vs historical?

The current P/E is higher 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	11.57	10.20	11.49
Price to Book	0.48	0.57	0.95
Price to Sales	0.11	0.12	0.72
EV to EBITDA	7.01	6.73	6.16

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