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Ruchira Papers Ltd. Stock Analysis

Small Cap
Evaluated by 781 users | BSE: 532785 | NSE: RUCHIRA |
Paper & Paper Products
Ruchira Papers incorporated in 1980 is engaged in manufacturing of Kraft Paper, which has applications in the packaging industry. The company is located in Himachal Pradesh.Company started its operation with a production capacity of 2310 TPA. Today it has augmented to 52800 TPA. The Kraft...

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 8.33%11.02%14.69%13.05%11.06%13.3%18.25%17.26%15.41%9.86%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 254284297320347363417448494481
Y-o-Y Gr. Rt.-11.9%4.6%7.6%8.3%4.6%15%7.3%10.4%-2.6%
Adjusted EPS (Rs.) 1.733.377.316.85.748.6714.4816.9316.6911.25
Y-o-Y Gr. Rt.-94.8%116.9%-7%-15.6%51.1%67%16.9%-1.4%-32.6%
Book Value per Share (Rs.) 27.8331.2137.3842.7946.9553.8368.1382.47100.75109.09
Adjusted Net Profit 3.97.616.415.212.919.432.53840.527.3
Net Op. Cash Flow (Rs. Cr.) 27.426.843.531.338.240.43347.123.538.2
Debt to Cash Flow from Ops 4.814.642.452.961.871.812.131.873.191.77
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.
Ruchira Papers Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 7.4%6.8%4.9%-2.6%
Adjusted EPS 23.1%14.4%-8.1%-32.6%
Book Value per Share 16.418.4178.3
Share Price 23.3% -1.4% -31% -29.1%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 6.4111.4221.3216.9612.7917.223.7522.0718.5810.73
Operating Profit Margin (%) 13.0314.217.1115.2411.313.115.3316.5716.629.16
Net Profit Margin (%) 1.532.665.514.763.715.367.798.488.195.67
Debt to Equity 2.111.781.270.960.680.610.460.480.310.26
Working Capital Days 931011071071019391104116127
Cash Conversion Cycle 47606666605557698194
Entity Percentage Holding
Promoters 64.07%
Institutions 0.57%
Non-Institutions 35.36%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

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

Ruchira Papers Ltd. earnings have grown by 14.4%, whereas share price has depreciated -1.4% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

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

Ruchira Papers Ltd. share price has depreciated 11.3% annually over the past ten years.

Ruchira Papers incorporated in 1980 is engaged in manufacturing of Kraft Paper, which has applications in the packaging industry. The company is located in Himachal Pradesh.

Company started its operation with a production capacity of 2310 TPA. Today it has augmented to 52800 TPA. The Kraft Paper is chiefly used in packaging industry for manufacturing of various types of packing boxes/cartons.

Besides Kraft Paper, the company also manufactures special grade of Kraft paper called

Ruchira Papers incorporated in 1980 is engaged in manufacturing of Kraft Paper, which has applications in the packaging industry. The company is located in Himachal Pradesh.

Company started its operation with a production capacity of 2310 TPA. Today it has augmented to 52800 TPA. The Kraft Paper is chiefly used in packaging industry for manufacturing of various types of packing boxes/cartons.

Besides Kraft Paper, the company also manufactures special grade of Kraft paper called “DTY Grade” and “POY Grade”.  These grades of paper are used to produce textile tubes and paper core-pipes, which are consumed by yarn manufacturing industries. This special grade paper is supplied to Reliance Industries to Converters for making textile tubes.Currently the company is selling about 1100 – 1200 M.T. per month.

The company manufactures paper of various qualities such as High Strength Flute 20+ B.F, Test Liner +20 BF, Kraft Liner +25 B.F, Base Paper (DTY) and Base Paper (POY).

Company sources power from H.P. State Electricity Board (HPSEB). In order to cater its fuel requirement, the company uses agricultural residues (bio mass) such as rice husk, bagasse, forest wood, forest waste plants, cotton stock, mustard stock etc as a fuel.

Company’s water requirement is met through digging bore and adopting most advanced system for re-circulation of the back water. Currently the company owns four tube wells.

Ruchira Papers has received appreciation letter from CII (Confederation of Indian Industry) for its initiative for conserving power. Company has established effluent control facilities as per the norms of The Pollution Control Board.

Future Prospects

In order to manufacture writing and printing paper, Ruchira Papers plans to set up 33000 TPA unit that would adjoined to its existing plants. The company will require the investment of about Rs.138 Crores. Under this project, company also plans to set up 6 MW Power Co-Generation Plant.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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