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Malu Paper Mills Ltd Stock Analysis

Small Cap
Evaluated by 161 users | BSE: 532728 | NSE: MALUPAPER |
Paper & Paper Products
Malu Paper Mills (MPML) was incorporated in 1994 as Malu Solvex. The name was changed to present one in the year 1998.The company is promoted by the Malu family, which has business interests in paper, coal and lignite trading, manufacturing and trading of MS electrodes, manganese processing...

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.
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 4.36%-8.18%-1.33%10.13%10.43%10.47%10.16%7.63%11.65%5.26%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 169169178218231228251300274226
Y-o-Y Gr. Rt.-0.3%4.9%22.7%6%-1.3%10.2%19.5%-8.4%-17.5%
Adjusted EPS (Rs.) -1.75-11.85-7.280.821.11.141.680.864.350.39
Y-o-Y Gr. Rt.-NANANA34.2%3.6%47.4%-48.8%405.8%-91%
Book Value per Share (Rs.) 24.7412.895.616.437.538.6714.1314.3918.1818.04
Adjusted Net Profit -3-20.2-12.41.41.922.91.57.40.7
Net Op. Cash Flow (Rs. Cr.) 6.1-4.214.113.719.420.520.319.418.915.4
Debt to Cash Flow from Ops 14.33-24.657.788.055.735.285.45.174.675.63
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.
Malu Paper Mills Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 3.3%-0.4%-3.4%-17.5%
Adjusted EPS NA-18.7%-38.5%-91%
Book Value per Share -3.519.18.5-0.8
Share Price 13.6% 20.4% -5% 2.1%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) -6.82-62.99-78.7213.615.7614.1314.76626.692.14
Operating Profit Margin (%) 6.57-5.690.5510.039.819.198.855.948.565.67
Net Profit Margin (%) -1.77-11.94-70.640.810.861.140.492.70.29
Debt to Equity 2.084.7311.4910.068.647.34.544.092.842.82
Working Capital Days 97887669758378758186
Cash Conversion Cycle 40473222293536323746
Entity Percentage Holding
Promoters 69.95%
Non-Institutions 30.05%
Pledged *72.9972.9472.9472.9472.9372.9172.9172.9172.9172.91
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Malu Paper Mills Ltd's performance infers:

Malu Paper Mills Ltd earnings have declined by -18.7%, whereas share price has appreciated 20.4% 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 Malu Paper Mills Ltd share prices over the last 10 years. Here is what we found out:

Malu Paper Mills Ltd share price has appreciated 9.4% annually over the past ten years.

Malu Paper Mills (MPML) was incorporated in 1994 as Malu Solvex. The name was changed to present one in the year 1998.

The company is promoted by the Malu family, which has business interests in paper, coal and lignite trading, manufacturing and trading of MS electrodes, manganese processing and exports, MS ingots and castings.

Manufacturing Unit

MPML owns two paper manufacturing units located at Nagpur in Read More

Malu Paper Mills (MPML) was incorporated in 1994 as Malu Solvex. The name was changed to present one in the year 1998.

The company is promoted by the Malu family, which has business interests in paper, coal and lignite trading, manufacturing and trading of MS electrodes, manganese processing and exports, MS ingots and castings.

Manufacturing Unit

MPML owns two paper manufacturing units located at Nagpur in Maharashtra. The company started production at its first paper mill in 1996 will a initial capacity of 18 tonnes per day (TPD). Later this capacity was increased to 25 TPD. Looking at prospects of paper business the company set up another mill will a capacity of 60 TPD.

Today Malu Paper Mills has a manufacturing capacity of 8250 TPA of kraft paper and 19800 TPA of newsprint.

The company also operates an inland container depot (ICD) at Ajni, Nagpur that provides excellent facilities for the purpose of Import of raw material and exports to the unit.

Products

MG kraft paper - The company’s kraft paper plant uses a recycle-based technology using old corrugated cartons as basic raw material to manufacture machine-glazed (MG) kraft paper with a production capacity of 25 TPD.

The market for kraft paper is located in Maharashtra, Karnataka, Andhra Pradesh and Tamilnadu. The company sells its products to industrial clients like DCL Polyesters, Indo-Rama Synthetics, HLL, Marico, Haldiram's and Solar Explosives to name few.

Newsprint - Being the basic raw material in newspaper media industry, the company caters newsprint to various leading newspapers. The company has clientele namely Lokmat Group, Jagaran Prakashan, Navbharat Group, Raj Express, Prabhat Khabar, The Hitvada, Uttar Banga Sambad, Dainik Bhaskar, Hindustan Times, Indian Express, 'O' Herald, Deshonnati, Sakal, Hari Bhoomi, Nai Dunia, Samaj, and many others.

It also caters to Saraswathy Press and Lunes Publication for Telephone Directories and Lotteries.

Outlook

Malu Paper Mills is focusing on various areas such as quality control, research and development facilities and reduce cost by introducing better management of resources. It is also planning to set up an in-house 6 MW coal based captive power plant.

The company is also looking out to expand its business through the acquisition of a potential company.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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