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Star Paper Mills Ltd. Stock Analysis

Small Cap
Evaluated by 555 users | BSE: 516022 | NSE: STARPAPER |
Paper & Paper Products
Star Paper Mills is engaged in manufacturing of paper and paper related products. Incorporated in 1938, the company is part of Duncan Goenka Group.Star Paper has received ISO 9001:2000 and ISO 14001:2004 certifications for its quality management.To produce its raw material, the company owns...

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 -6.25%-32.67%-29.34%-29.7%31.36%27.9%28.48%13.76%11.92%7.28%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 260228273275271272324347378341
Y-o-Y Gr. Rt.--12.1%19.6%0.8%-1.4%0.4%19%6.9%9%-9.7%
Adjusted EPS (Rs.) -6.55-27.18-18.84-14.149.8910.5638.4133.2332.7221.75
Y-o-Y Gr. Rt.-NANANANA6.8%263.7%-13.5%-1.5%-33.5%
Book Value per Share (Rs.) 80.9253.7634.8220.6830.1540.72226.05260.12291.69312.84
Adjusted Net Profit -10.2-42.4-29.4-22.115.416.56051.951.134
Net Op. Cash Flow (Rs. Cr.) -6.8-0.84.32.614.712.138.935.530.817.5
Debt to Cash Flow from Ops -2.23-25.984.678.030.930.550.110.040.050
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.
Star 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 3.1%4.7%1.7%-9.7%
Adjusted EPS NA17.1%-17.3%-33.5%
Book Value per Share 16.259.711.47.3
Share Price 15.8% 23.6% -24.2% -16.6%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) -7.75-40.36-42.55-50.9738.9329.828.813.6711.867.2
Operating Profit Margin (%) -4.48-16.86-6.02-2.925.459.7721.8720.8513.0614.11
Net Profit Margin (%) -3.94-18.58-10.78-8.035.696.0518.4914.9613.529.96
Debt to Equity 0.120.240.370.630.290.10.01000
Working Capital Days 81796057667157636791
Cash Conversion Cycle 1417-25-49-67-66-41-13420
Entity Percentage Holding
Promoters 45.17%
Institutions 0.14%
Non-Institutions 54.69%
Pledged *48.4948.3048.3059.1962.0147.9447.5047.5047.5047.50
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

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

Star Paper Mills Ltd. earnings have grown by 17.1%, whereas share price has appreciated 23.6% 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 Star Paper Mills Ltd. share prices over the last 10 years. Here is what we found out:

Star Paper Mills Ltd. share price has appreciated 8.5% annually over the past ten years.

Star Paper Mills is engaged in manufacturing of paper and paper related products. Incorporated in 1938, the company is part of Duncan Goenka Group.

Star Paper has received ISO 9001:2000 and ISO 14001:2004 certifications for its quality management.

To produce its raw material, the company owns 34983 hectare on which 270 lakhs saplings have been grown spread across seven  districts of western Uttar Pradesh and two districts of Uttranchal. 

The company has started

Star Paper Mills is engaged in manufacturing of paper and paper related products. Incorporated in 1938, the company is part of Duncan Goenka Group.

Star Paper has received ISO 9001:2000 and ISO 14001:2004 certifications for its quality management.

To produce its raw material, the company owns 34983 hectare on which 270 lakhs saplings have been grown spread across seven  districts of western Uttar Pradesh and two districts of Uttranchal. 

The company has started Clonal Technology Programme with an intension to increase the yield per unit area. The paper major has developed fully automatic green houses and hardening chambers at Tapri for production of clonal plants.

Star Paper Mills produces range of products used in industrial, packaging and cultural papers catering to almost all segments of consumers.

The company has an installed manufacturing capacity of 75,000 tonnes per annum of paper and paperboard.

The company has a pan-India presence through 50 dealers. Its clients include Century, Laminating, Eveready, Greenply, Thomson Press, Hindustan Lever, ITC, Pearson Education (Singapore), Shree Krishna Paper and Thomson Press, among others

Products

The company produces a wide range of papers such as SS Maplitho White/Natural Shade, Greeting Paper, Kraft Paper, Padding Paper, MG Poster, Stiffner Cover, Cartridge Paper, Azurelaid and many more.

These products have application in paper printing, lottery printing, computer stationery, book printing, packaging various products, Defence/Ammunition Packing and many more.

Awards

Star Paper Mills has received the Greentech Award in Environmental Excellence in November 2005 and Greentech Award for safety in paper industries in April 2005.

As a token of appreciation for its energy conservation initiatives the company has received a Certificate of Merit from the Indian Paper Manufacturers Association

Outlook

Star Paper Mills has plans to expand its capacity from 3 lakh clonal plants per annum to 64 lakh clonal plants per annum in next four to five years.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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