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Seshasayee Paper & Boards Ltd. Stock Analysis

Small Cap
Evaluated by 494 users | BSE: 502450 | NSE: SESHAPAPER |
Paper & Paper Products
Seshasayee Paper and Boards (SPB), incorporated in June 1960, was promoted by Seshasayee Brothers (Pvt) Limited in association with a foreign collaborator M/s Parsons and Whittemore, South East Asia Inc, USA. After commencement of commercial production, having fulfilled their performance...

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 13.07%8.44%7.78%6.86%6.11%8.06%19.59%16.17%21.91%18.54%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 5736118341,0111,0141,0251,1081,1051,3251,184
Y-o-Y Gr. Rt.-6.6%36.5%21.1%0.3%1.1%8%-0.3%20%-10.7%
Adjusted EPS (Rs.) 11.566.063.654.253.115.6420.3318.973028.23
Y-o-Y Gr. Rt.--47.6%-39.8%16.4%-26.8%81.4%260.5%-6.7%58.1%-5.9%
Book Value per Share (Rs.) 50.3255.2264.3360.9162.3166.7592.31111.27137.63158.36
Adjusted Net Profit 6534.120.526.819.635.6128120189178
Net Op. Cash Flow (Rs. Cr.) 9715.420965.6105112200225273166
Debt to Cash Flow from Ops 4.114.32.075.943.142.70.850.660.360.06
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.
Seshasayee Paper & Boards Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 8.4%3.2%2.3%-10.7%
Adjusted EPS 10.4%55.5%11.6%-5.9%
Book Value per Share 13.620.519.715.1
Share Price 14.7% 24.4% -4.1% -18.9%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 25.6111.496.097.175.048.7425.5718.6424.1119.08
Operating Profit Margin (%) 19.2516.1812.6912.238.810.4419.3218.7822.3222.95
Net Profit Margin (%) 11.335.582.462.651.933.4711.5810.8314.2815.04
Debt to Equity 1.40.711.21.010.840.720.290.210.110.01
Working Capital Days 145189131113128133110988391
Cash Conversion Cycle 92020135-4-9-8-24-18
Entity Percentage Holding
Promoters 42.65%
Institutions 25.35%
Non-Institutions 32.00%
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 Seshasayee Paper & Boards Ltd.'s performance infers:

Seshasayee Paper & Boards Ltd. earnings have grown by 55.5%, whereas share price has appreciated 24.4% 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 Seshasayee Paper & Boards Ltd. share prices over the last 10 years. Here is what we found out:

Seshasayee Paper & Boards Ltd. share price has appreciated 11.3% annually over the past ten years.

Seshasayee Paper and Boards (SPB), incorporated in June 1960, was promoted by Seshasayee Brothers (Pvt) Limited in association with a foreign collaborator M/s Parsons and Whittemore, South East Asia Inc, USA. After commencement of commercial production, having fulfilled their performance guarantee obligations, the foreign collaborators withdrew in 1969.

SPB, the flagship company belonging to 'ESVIN GROUP', operates an integrated pulp, paper and paper board Mill at Pallipalayam, Erode,

Seshasayee Paper and Boards (SPB), incorporated in June 1960, was promoted by Seshasayee Brothers (Pvt) Limited in association with a foreign collaborator M/s Parsons and Whittemore, South East Asia Inc, USA. After commencement of commercial production, having fulfilled their performance guarantee obligations, the foreign collaborators withdrew in 1969.

SPB, the flagship company belonging to 'ESVIN GROUP', operates an integrated pulp, paper and paper board Mill at Pallipalayam, Erode, District Namakkal, Tamilnadu, India.

SPB commenced commercial production in December 1962, on commissioning a 20,000 tonne per annum (tpa) integrated facility, comprising a Pulp Mill and two Paper Machines (PM-1 and PM-2), capable of producing, writing, printing, craft and poster varieties of paper.

The plant capacity was expanded to 35000 tpa in 1967-68, by modification of PM-2 and addition of a third Paper Machine (PM-3). The cost of the expansion scheme, at Rs 34 millions was part financed by All India Financial Institutions (Rs 31 million).

In the second stage of expansion, undertaken in 1976, capacity was enhanced to 55000 tpa, through addition of a 60 tpd new Paper Machine (PM-4). Cost of the project, including cost of a Chemical Recovery Boiler and other facilities for enhanced requirement of utilities, was estimated at Rs. 176 million. The same was part financed by term loans from Institutions and banks to the extent of Rs 145 million and the balance out of internal generation.

SPB undertook various equipment balancing and modernisation programmes, since then, for improving its operating efficiency, captive power generation capacity, etc., upto 1992-93.

The company embarked on an Expansion / Modernisation Project to enhance its production capacity from 60000 tonnes per annum, to 1,15,000 tonnes per annum and to upgrade some of the existing facilities, at an estimated cost of Rs 1890 million.

The said Expansion / Modernisation Project was completed in December 2000. After successful trials, the commercial production out of the new Paper Machine commenced on July 1, 2000.The current installed capacity of the company stands at 1,15,000 tonnes per annum.

The company's paper plant was originally designed for using bagasse, as the primary raw material mixed with 20% bamboo fibre. Bagasse was being obtained from nearby sugar mill on substitution basis using oil fired boilers.

With sharp increase in oil prices in 1970-71, the company shifted over to the use of hardwood, at the time of its expansion undertaken in 1978. Raw material mix underwent a substantial change, with bamboo and hardwood forming 60% and 40%, respectively, of its raw material consumption.

Soon  the company started apprehending difficulties in procurement of bamboo. In 1981, it added one more digester, to increase the share of the hardwood in the furnish mix to 80% and restricting bamboo use to only 20%.

With the commissioning of more wood based industries in Tamilnadu, there was again an apprehension about availability of hardwood. As a long term strategy, the company at this time decided on restructuring use of bagasse which was seen to be the most reliable source of fibre for the entire Industry.

SPB's exports are nearly 20% of its production and is a significant exporter in the Indian Paper Industry. Due to its excellent export performance, SPB has been awarded 'Golden Export House' status.

In 2011 Seshasayee Paper and Boards acquired M/s Subburaj Papers Private Limited.

Product range of the company includes:

  • MF I And MF II
  • MG
  • Yankee
  • MF3

Awards & Achievements:

  • Capacity Utilisation Award
  • Energy Conservation Award
  • Environmental Protection Award
  • Safety Award
  • Export Performance Award
  • Good Industrial Relations Award
  • TERI - Corporate Environmental Award
  • The Company's quality systems to be covered by the 'ISO 9001' accreditation awarded by Det Norske Veritas, The Netherlands.
  • The Company has also been accredited with 'ISO 14001' certification by Det Norske Veritas, The Netherlands, for its Environmental Quality Systems.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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