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South India Paper Mills Ltd Stock Analysis

Small Cap
Evaluated by 197 users | BSE: 516108 | NSE: SIPAPER |
Paper & Paper Products
South India Paper Mills (SIPM) was incorporated in 1959 and promoted by the South India Paper group. The company is engaged in paper business. It manufactures paper and paperboards such as cartons. The company caters to the needs of various segments of paper-based industries such as 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'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Capital Employed 18.61%16.69%14.49%14.16%4.67%11.98%13.87%8.2%1.93%11.28%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 128167170168144186207195135243
Y-o-Y Gr. Rt.-30.1%2.3%-1.1%-14.8%29.3%11.4%-5.6%-31%80.1%
Adjusted EPS (Rs.) 9.189.098.539.162.538.6612.357.570.1112.34
Y-o-Y Gr. Rt.--1%-6.2%7.4%-72.4%242.3%42.6%-38.7%-98.6%11118.2%
Book Value per Share (Rs.) 44.5751.4959.265.7266.5672.2784.7294.2193.13104.03
Adjusted Net Profit 13.813.612.813.73.81318.511.40.218.5
Net Op. Cash Flow (Rs. Cr.) 17.713.921.616.511.414.638.226.2-1.738.9
Debt to Cash Flow from Ops 1.011.50.660.771.341.170.891.74-32.130.97
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.
South India 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 7.4%11.1%5.5%80.1%
Adjusted EPS 3.3%37.3%-011118.2%
Book Value per Share 9.99.37.111.7
Share Price 8.6% -3.9% -13.3% 37.4%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) 22.4618.9215.4214.663.8312.4715.748.460.1112.52
Operating Profit Margin (%) 19.4514.8413.4816.2510.2715.7417.5915.579.715.31
Net Profit Margin (%) 10.758.187.518.152.6578.965.820.127.63
Debt to Equity 0.270.270.160.130.150.160.270.320.380.24
Working Capital Days 118106112116150132131142226134
Cash Conversion Cycle 605556588373707013178
Entity Percentage Holding
Promoters 41.90%
Institutions 1.75%
Non-Institutions 56.34%
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 South India Paper Mills Ltd's performance infers:

South India Paper Mills Ltd earnings have grown by 37.3%, whereas share price has depreciated -3.9% 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 South India Paper Mills Ltd share prices over the last 10 years. Here is what we found out:

South India Paper Mills Ltd share price has depreciated 6.5% annually over the past ten years.

South India Paper Mills (SIPM) was incorporated in 1959 and promoted by the South India Paper group. The company is engaged in paper business. It manufactures paper and paperboards such as cartons. The company caters to the needs of various segments of paper-based industries such as newsprint, writing paper, packaging, etc. SIPM is also engaged in power cogeneration. It generates steam process requirements as well as power generation by fluidised bed combustion (FBC) boilers. The plant is

South India Paper Mills (SIPM) was incorporated in 1959 and promoted by the South India Paper group. The company is engaged in paper business. It manufactures paper and paperboards such as cartons. The company caters to the needs of various segments of paper-based industries such as newsprint, writing paper, packaging, etc. SIPM is also engaged in power cogeneration. It generates steam process requirements as well as power generation by fluidised bed combustion (FBC) boilers. The plant is located at Chikkayanachatra (Mysore) in Karnataka. The total installed capacity of the company is 56,000 MT of paper and paper boards per annum. SIPM is a 47-year old public limited company listed on BSE. SIPM primarily manufactures corrugating raw material (Kraft, Liner board, Test Liner & Fluting).

SIPM's clientele includes top FMCG companies and several EOUs. The company has stake on a box manufacturing company as well. Future plans include installation of a state-of-the-art sheet plant to cater to the box manufacturer's requirement. South India Paper Mills Limited is an India-based company.

Milestones:

1959 - The company was incorporated and acquired a paper mill for a consideration of Rs 7.16 lakh. 

1968- 1970 - The company increased its capacity to 24 TPD. 

1982 - SIPM's capacity was further enhanced to 45 TPD. The company's object is to manufacture paper and paper boards. 

1996- The high pressure power boiler became operational from February. This is expected to insulate the cost of fuel by virtue of supply shortages and off season scarcities. 

1998 - The company undertook an expansion project for setting up (i) Electro static precipitator system (ii) High pressure boiler of 25 tph capacity (iii) New paper machine (iv)Turbo generating set of 3.5 MW capacity.

Business areas of the company:

The company is engaged in the manufacture of paper and paper products. It is also engaged in the generation of power. The company operates in two segments: Paper & Paper Products and Power. Its products include Kraft liners / Test liners, MG Kraft Paper, MF Printing and Writing & Newsprint.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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