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Sangal Papers Ltd Stock Analysis

Small Cap
Evaluated by 91 users | BSE: 516096 | NSE: |
Paper & Paper Products
Sangal Papers is a paper-manufacturing unit incorporated in 1980 by the Sangal family. Prior to establishment of the paper unit, they were in the business of agriculture, sugar crusher, cinema theaters and film distribution. Presently the company is major manufacturer and supplier of newsprint...

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 8.44%9.05%8.11%9.24%7.44%7.9%7.66%8.72%15.61%5.98%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 70.382.791.510093.294.4104120148126
Y-o-Y Gr. Rt.-17.6%10.7%9.4%-6.9%1.3%10.5%14.9%23.8%-15.2%
Adjusted EPS (Rs.) 8.211.219.9113.4110.6713.2613.1619.9346.9312.08
Y-o-Y Gr. Rt.-36.7%-11.6%35.3%-20.4%24.3%-0.8%51.4%135.5%-74.3%
Book Value per Share (Rs.) 99.53110.68120.55132.56143.41156.09169.25189.26236.49250.04
Adjusted Net Profit 1.11.51.31.81.41.71.72.66.11.6
Net Op. Cash Flow (Rs. Cr.) 6-6.72.33.80.8492.38.32.5
Debt to Cash Flow from Ops 3.48-3.6710.795.9630.55.542.048.552.178.04
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.
Sangal Papers Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 6.7%6.2%6.4%-15.2%
Adjusted EPS 4.4%2.5%-2.8%-74.3%
Book Value per Share 10.811.813.95.7
Share Price 11.9% 8.7% -15.9% -2.5%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 7.8910.058.2510.297.538.647.9110.8921.674.89
Operating Profit Margin (%) 7.827.286.856.815.675.955.184.726.243.59
Net Profit Margin (%) 1.521.771.421.751.51.841.652.184.141.26
Debt to Equity 1.61.691.581.31.271.080.830.80.580.62
Working Capital Days 11913414913313813611010295114
Cash Conversion Cycle 69809185939179716176
Entity Percentage Holding
Promoters 39.47%
Non-Institutions 60.53%
Pledged *39.4239.3939.3939.3938.8338.8338.8038.7638.7638.76
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

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

Sangal Papers Ltd earnings have grown by 2.5%, whereas share price has appreciated 8.7% 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 Sangal Papers Ltd share prices over the last 10 years. Here is what we found out:

Sangal Papers Ltd share price has appreciated 7.5% annually over the past ten years.

Sangal Papers is a paper-manufacturing unit incorporated in 1980 by the Sangal family. Prior to establishment of the paper unit, they were in the business of agriculture, sugar crusher, cinema theaters and film distribution. Presently the company is major manufacturer and supplier of newsprint paper. The company is also dealing in  activity & construction paper.

Since 1980 they have been committing to quality and competitive pricing policy helps us in emerging as one of the

Sangal Papers is a paper-manufacturing unit incorporated in 1980 by the Sangal family. Prior to establishment of the paper unit, they were in the business of agriculture, sugar crusher, cinema theaters and film distribution. Presently the company is major manufacturer and supplier of newsprint paper. The company is also dealing in  activity & construction paper.

Since 1980 they have been committing to quality and competitive pricing policy helps us in emerging as one of the leading players in paper manufacturing industry. In order to provide the best quality end product, they follow a planned process in their manufacturing unit. They work very hard to meet quality expectations and delivery schedules. They enjoy a huge client base, as their products have reached beyond the national boundary.

Initially the company had installed capacity of 4500 MT per annum for production of Kraft paper utilizing agricultural residues as chief fibrous raw material. In the year 1992, the company increased its installed capacity from 4500 MT per annum to 7500 MT per annum, maintaining the same line of production. In the year 1994, company further increased the production capacity from 7500 MT per annum to 16500, by way of installing another machine for production of two different types of paper-in one machine, Kraft paper, utilizing agricultural residues as chief fibrous raw material and in second machine, newsprint, utilizing chiefly secondary fibers; maintaining flexibility to manufacture any type of paper on any line of manufacturing. 

Due to extremely low profitability and also, effluent discharge problems with use of agro residues, company switched over its production, entirely for newsprint, utilizing cent-per-cent waste paper. Notably, the newsprint paper sold to newspaper publishers does not attract any excise duty and sales tax. Being notified in Schedule I of NCO 1962. The company is a leading manufacturer and supplier of a wide portfolio of paper and paper products. This paper is made up using recycled paper pulp, some of which is either manufactured in their plant or procured from suppliers.

Initially the company had installed capacity of 4500 MT per annum for production of Kraft paper utilizing agricultural residues as chief fibrous raw material.

Product range of the company includes:

  • News Print Paper This newsprint is manufactured using tones of newspaper mesh by recycling them. They generally supply two kinds of news print paper like white paper and color newsprint. Both have high strength tinsel and opacity with smooth surface that allows printing of photos.
  • Activity & Construction Paper These papers are easily printed and can be cut into various dimensions. These are generally used in various types of creativity work. These are available in both thick and soft texture with glazed and rough surfaces in a variety of colors.

The newsprint paper is being very well accepted by various reputed newspaper publishers all over India:

  • Ajit Samachar
  • Amar Ujala
  • Assam Tribune
  • Dainik Jagran
  • Punjab Kesari
  • Shrinagar Times-Greater Kashmir
  • State Times – Jammu
  • Tribune
  • Dainik Aachran
  • Nai Duniya, and many more.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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