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Ballarpur Industries Ltd. Stock Analysis

Small Cap
Evaluated by 1165 users | BSE: 500102 | NSE: BALLARPUR |
Paper & Paper Products
Ballarpur Industries (BILT) was incorporated in 1945 as Ballarpur Paper and Straw Board Mills and created brands like ‘Three Aces’ for paper and ‘Wisdom’ for stationary. In 1969 the company merged with Shree Gopal Mills. The name was changed to Ballapur Industries in...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Ballarpur Industries Ltd. has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Jun'10Jun'11Jun'12Jun'13Jun'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Capital Employed 3.63%2.3%1.68%2.82%3.4%1.56%2.46%-13.12%-0.46%-10.05%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,0211,0611,094985950601562216303455
Y-o-Y Gr. Rt.-4%3.2%-10%-3.5%-36.7%-6.6%-61.5%40.2%50.3%
Adjusted EPS (Rs.) 0.860.40.150.510.540.190.03-8.06-1.48-3.01
Y-o-Y Gr. Rt.--53.5%-62.5%240%5.9%-64.8%-84.2%-26966.7%NANA
Book Value per Share (Rs.) 25.1924.6924.2124.3724.6632.7625.571.386.060.51
Adjusted Net Profit 56.126.49.733.235.312.21.8-528-192-389
Net Op. Cash Flow (Rs. Cr.) 81812219416054.1137-185-53341.627.8
Debt to Cash Flow from Ops 1.058.033.875.4718.5110-10.7-4.7240.6459.6
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Ballarpur Industries Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -8.6%-13.7%-6.8%50.3%
Adjusted EPS -214.9%-241%-564.7%NA
Book Value per Share -35.2-54-72.9-91.6
Share Price -29.6% -42.5% -55.5% 136%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Jun'10Jun'11Jun'12Jun'13Jun'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) 3.741.620.62.082.20.570.11-59.8-43.85-91.48
Operating Profit Margin (%) 18.2615.5411.6716.0213.8215.1513.59-145.66-10.97-4.12
Net Profit Margin (%) 5.492.490.883.373.712.020.32-244.36-63.29-85.43
Debt to Equity 0.520.610.470.550.620.641.1827.742.1625.04
Working Capital Days 3672662562672565574861,508825458
Cash Conversion Cycle 819310811812828815436582-107
Entity Percentage Holding
Promoters 2.68%
Institutions 34.21%
Non-Institutions 63.11%
Pledged *99.5999.5999.5999.5999.5999.5899.5899.5899.5896.18
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Ballarpur Industries Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Ballarpur Industries Ltd. is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Ballarpur Industries Ltd.'s performance infers:

Ballarpur Industries Ltd. earnings have declined by -241%, whereas share price has depreciated -42.5% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Ballarpur Industries Ltd. share prices over the last 10 years. Here is what we found out:

Ballarpur Industries Ltd. share price has depreciated -29.7% annually over the past ten years.

Ballarpur Industries (BILT) was incorporated in 1945 as Ballarpur Paper and Straw Board Mills and created brands like ‘Three Aces’ for paper and ‘Wisdom’ for stationary. In 1969 the company merged with Shree Gopal Mills. The name was changed to Ballapur Industries in 1975.

It entered the industrial paper segment in the year 1988. Today, the company is a market leader of Indian paper industry and is part of the $3 billion Avantha Group.

Its manufacturing

Ballarpur Industries (BILT) was incorporated in 1945 as Ballarpur Paper and Straw Board Mills and created brands like ‘Three Aces’ for paper and ‘Wisdom’ for stationary. In 1969 the company merged with Shree Gopal Mills. The name was changed to Ballapur Industries in 1975.

It entered the industrial paper segment in the year 1988. Today, the company is a market leader of Indian paper industry and is part of the $3 billion Avantha Group.

Its manufacturing facilities are located at Ballarpur and Bhigwan (Maharashtra), Shree Gopal (Haryana), Sewa (Orissa) and a pulp unit at Kamalapuram (Andhra Pradesh). The company is largest manufacturer and exporter of a range of products such as writing and printing (W&P) paper, industrial paper and speciality paper.

BILT’s subsidiary, BILT Tree Tech is focused on developing core competency in forestry and is manned by experienced forestry professionals.

The company holds 85% share of the bond paper market and nearly 45% share of the hi-bright Maplitho market in India.

Business

It manufactures wide range of papers such as coated wood free, uncoated wood free, copy paper, packaging, business stationery, industrial grades and speciality and fine paper.

The company has launched a premium range of paper stationery products under brand name BILT Matrix.

Awards

BILT was awarded the Golden Peacock Global Award for Corporate Social Responsibility by the World Council for Corporate Governance.

The company received the Indian Manufacturing Excellence Award in the year 2006.

It also bagged Safety Innovation Award (2006) from Safety and Quality Forum.

Milestones:-

• 1990: Sewa Paper Mills acquired

• 1992: Choudwar unit acquired

• 1994: US $ 35 million FCCB Issue launched

• 2000: Business portfolio restructuring completed

• 2001: Sinar Mas Pulp and Paper (India) Limited acquired and renamed Bilt Graphic Papers Limited (BGPL)

• 2002: New Corporate Identity initiative. Genesis of BILT

• 2003: BILT Graphic Papers Limited merged with BILT, US $ 80 million raised through FCCB and GDS Issue

The company has signed a Share Purchase Agreement with Premier Tissues India (PTIL) and its shareholders for acquiring entire paid-up capital of PTIL for a consideration of around Rs 76.52 crore.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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