Check Before You Invest : Three M Paper Boards Ltd

Snapshot

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

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

Q.2 Is Three M Paper Boards Ltd a good quality company?

Three M Paper Boards Ltd is a quality company, based on a 5-year financial track record.

Q.3 Is Three M Paper Boards Ltd undervalued or overvalued?

Three M Paper Boards Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Three M Paper Boards Ltd a good buy now?

Three M Paper Boards 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 Return on capital employed (ROCE) of Three M Paper Boards Ltd?

Three M Paper Boards Ltd Return on capital employed is 12.17% for FY-2025, which is in line with its 5-year historical median of 12.17%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.2 Return on Asset of Three M Paper Boards Ltd?

Three M Paper Boards Ltd Return on Asset is 4.59%, which is above its 5-year historical median of 3.57%, indicating improved asset utilization efficiency.

Q.3 Return on Equity (ROE) of Three M Paper Boards Ltd?

Three M Paper Boards Ltd Return on equity is 12.14% for FY-2025, which is in line with its 5-year historical median of 12.14%, indicating the business is making similar use of its shareholders capital.

Q.4 Gross Profit margin of Three M Paper Boards Ltd?

Three M Paper Boards Ltd Gross profit margin which is the profit after deduction of direct costs, is 7.1% for FY-2025, which is above its 5-year median of 4.8%, indicating increasing margins.

Q.5 Operating Profit Margin of Three M Paper Boards Ltd?

Three M Paper Boards Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 8.26% for FY-2025, which is in line with its 5-year median of 8.26% indicating stable margins.

Q.6 Net Profit Margin of Three M Paper Boards Ltd?

Three M Paper Boards Ltd Net Profit Margin is 3.76% for FY-2025, is above with its 5-year median of 2.02%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	7.1	4.8
Operating Profit Margin	8.26	8.26
Net Profit Margin	3.76	2.02

Q.7 Debt to Equity ratio of Three M Paper Boards Ltd?

Three M Paper Boards Ltd Debt-to-Equity ratio is 0.60, which is above with the industry average of 0.57, indicating higher debt levels in the industry.

Q.8 Debt to cash flow from operations of Three M Paper Boards Ltd?

Three M Paper Boards Ltd Debt to cash flow from operations is 6.44, which is at a unhealthy level.

Ownership & governance

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

Promoters hold 70.09% of the Three M Paper Boards Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Three M Paper Boards Ltd vs industry peers?

Three M Paper Boards Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 6.51%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-	6.5
Gross Profit Growth	-4.4	6.4
Operating Profit Growth	-5.8	3
Net Profit Growth	-11.3	1.4

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.22	0.93
ROE	12.14	8.69
ROCE	12.17	8.02
Cash Conversion Cycle (days)	50.09	56

Valuation & price assessment

Q.1 Stock return of Three M Paper Boards Ltd over the last decade?

Over the last 1 year(s), the stock has delivered a CAGR of -33.78% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-33.8%

Q.3 Valuation ratios of Three M Paper Boards 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	5.01	7.41	11.49
Price to Book	0.48	0.76	0.95
Price to Sales	0.19	0.28	0.72
EV to EBITDA	4.51	5.84	6.16

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