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Kuantum Papers Ltd Stock Analysis

Small Cap
Evaluated by 215 users | BSE: 532937 | NSE: KUANTUM |
Paper & Paper Products
ABC Paper, incorporated in 1989, is engaged in business of manufacturing and marketing wood-free writing and printing paper. The company’s products are used by the publishing sector, printing of textbooks, notebooks, newsprint, computer stationary, photocopying paper and coloured...

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.
Kuantum Papers Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 13.51%9.21%11.63%17.79%7.6%4.94%8.51%9.46%9.3%7.77%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 307376422479499526608704793745
Y-o-Y Gr. Rt.-22.5%12%13.6%4.2%5.3%15.6%15.9%12.7%-6.1%
Adjusted EPS (Rs.) 1.980.581.53.952.892.846.738.459.238.93
Y-o-Y Gr. Rt.--70.7%158.6%163.3%-26.8%-1.7%137%25.6%9.2%-3.3%
Book Value per Share (Rs.) 6.97.328.7912.4114.6816.9671.1379.2387.8595.31
Adjusted Net Profit 17.35.113.134.525.324.858.773.880.677.9
Net Op. Cash Flow (Rs. Cr.) 43.445.35362.132.356.772.813113674.8
Debt to Cash Flow from Ops 4.373.623.822.366.023.754.152.452.917.66
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.
Kuantum Papers Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 10.3%8.3%7%-6.1%
Adjusted EPS 18.2%25.3%9.9%-3.3%
Book Value per Share 33.945.410.38.5
Share Price 39.9% 33.5% -6.4% 67.9%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 32.748.0918.5232.17.124.279.6911.2511.059.75
Operating Profit Margin (%) 14.8112.1514.1816.412.912.5119.3621.2320.1917.19
Net Profit Margin (%) 5.641.353.17.25.064.729.6610.4810.1610.46
Debt to Equity 3.13.132.641.061.231.190.490.460.510.69
Working Capital Days 68718599108117110101100115
Cash Conversion Cycle 36363633394637332933
Entity Percentage Holding
Promoters 70.30%
Institutions 0.01%
Non-Institutions 29.69%
Pledged *19.2819.2819.282.612.612.610.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Kuantum Papers Ltd and arrived at the following conclusion:

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

The 5-year analysis of Kuantum Papers Ltd's performance infers:

Kuantum Papers Ltd earnings have grown by 25.3%, whereas share price has appreciated 33.5% 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 Kuantum Papers Ltd share prices over the last 10 years. Here is what we found out:

Kuantum Papers Ltd share price has appreciated 30% annually over the past ten years.

ABC Paper, incorporated in 1989, is engaged in business of manufacturing and marketing wood-free writing and printing paper. The company’s products are used by the publishing sector, printing of textbooks, notebooks, newsprint, computer stationary, photocopying paper and coloured paper.

It was set up as a division of Amrit Banaspati Company (now known as Amrit Corp) in 1979-80 in Punjab. The division was established with an aim to utilize wild vegetations namely Sarkanda, Kahi, etc

ABC Paper, incorporated in 1989, is engaged in business of manufacturing and marketing wood-free writing and printing paper. The company’s products are used by the publishing sector, printing of textbooks, notebooks, newsprint, computer stationary, photocopying paper and coloured paper.

It was set up as a division of Amrit Banaspati Company (now known as Amrit Corp) in 1979-80 in Punjab. The division was established with an aim to utilize wild vegetations namely Sarkanda, Kahi, etc and agro-residues such as wheat straw and rice straw.

The company started with an initial production capacity of 30 TPD paper. It has emerged as amongst the top agro-based paper mills in India. In 2005 a 9 MW captive power plant was installed.

Later in 2006, Amrit Corp went through restructuring of the company wherein the paper division was de-merged and ABC Paper became a separate entity.

The company has employee strength of 700 people and an annual sales turnover of Rs 1600 million.

ABC Paper was recognised for its efforts to reduce production cost by giving a National Energy Conservation Award from Government of India. The company was also awarded North-West Qualtech Award in 2004 for implementation of its TQM Project in the mill.

Products

Paper- The company manufactures a range of paper such as maplitho, coloured paper, ledger, cartridge, parchment and duplicating paper. Besides this, it manufactures wood-free speciality papers such as ABC gold, aqua-sapphire, pearl white and diamond colour. These products find applications in printing of books, trade directories, newsprint, diaries, calendar, computer stationery, etc.

Lignin- In the year 1995, the company collaborated with a Swiss Company-Granit S.A to form a joint venture company called Greencone Environs. The objective of this JV was to recover lignin from the pulp mill effluent, black liquor through LPS (Lignin Precipitation System) process. Lignin is widely used by industries such as concrete, plywood as partial replacement of phenol, agrochemicals, animal feed, refractories, etc.

Asian Lignin Manufacturing of Chandigarh is subsidiary of Granit S.A Switzerland. This company is engaged in marketing of lignin and lignin based products for commercial applications.

Future plans

The company has chalked out future plans for the coming 5 years which are as mentioned below:

  • The company plans to set up chemical recovery plant for an environmental friendly process.
  • It plans to install captive power plant based on bio-mass fuels with 10 MW of capacity.
  • ABC paper wants to increase its manufacturing capacity from 140 TPD to 250 TPD.
  • The company plans to establish a wood based pulp plant of 60TPD capacity.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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