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Tamil Nadu Newsprint & Papers Ltd Stock Analysis

Small Cap
Evaluated by 1311 users | BSE: 531426 | NSE: TNPL |
Paper & Paper Products

Tamil Nadu Newsprint and Papers Limited (TNPL) is an enterprise promoted by Government of Tamil Nadu. The Unit- I of TNPL at Kagithapuram, Karur district was commissioned in October 1985 with an installed capacity of 90,000 TPA of Newsprint/Fine Paper, in a...

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.
Tamil Nadu Newsprint & Papers Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Capital Employed 5.31%7.02%9.9%9.43%9.43%10.25%3.28%6.94%7.81%1.32%-
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,5231,8612,2852,1362,4182,9583,0984,0833,4712,7682,876
Y-o-Y Gr. Rt.-22.2%22.8%-6.5%13.2%22.3%4.8%31.8%-15%-20.3%-
Adjusted EPS (Rs.) 5.3214.3523.9124.4438.5239.09-4.4914.6819.8-11.74-8.51
Y-o-Y Gr. Rt.-169.7%66.6%2.2%57.6%1.5%-111.5%NA34.9%-159.3%-
Book Value per Share (Rs.) 140.23149.59165.55173.6218.09246.28231.61238.62247.47230.69228.70
Adjusted Net Profit 36.899.3165169267271-31.1102137-81.2-59
Net Op. Cash Flow (Rs. Cr.) 306632524404620284833819241423-
Debt to Cash Flow from Ops 5.672.372.825.114.349.942.912.399.026.41-
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.
Tamil Nadu Newsprint & Papers Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 6.9%2.8%-3.7%-20.3%
Adjusted EPS -209.2%-178.9%NA-159.3%
Book Value per Share 5.71.1-0.1-6.8
Share Price 2.4% -17.1% -22.4% 19.8%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity (%) 3.99.915.1714.4119.6616.84-1.886.258.15-4.91-3.7
Operating Profit Margin (%) 20.9822.2122.4623.8723.8925.2513.7616.4218.099.838.7
Net Profit Margin (%) 2.425.347.247.9211.039.15-12.493.95-2.93-2.05
Debt to Equity 1.791.451.291.721.781.661.511.191.271.7-
Working Capital Days 199170149212180141154123158188-
Cash Conversion Cycle 56341439323550416069-
Loading price chart...
Entity Percentage Holding
Promoters 35.32%
Institutions 29.32%
Non-Institutions 35.37%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Past 10 year’s financial track record indicates that that Tamil Nadu Newsprint & Papers Ltd is a below average quality company.

Tamil Nadu Newsprint & Papers Ltd's earnings have declined by -178.9%, whereas share price has declined -17.1% CAGR over the past five years, indicating the company’s share price is likely overvalued. However, for specific investment actions please consult your investment advisor.

Tamil Nadu Newsprint & Papers Ltd share price has appreciated 2.4% annually (CAGR) over the past ten years.

Past 10 years financial track record analysis by Moneyworks4me indicates that Tamil Nadu Newsprint & Papers Ltd is a below average long term investment. However, you need to ensure you buy at a right price to earn good returns.

Tamil Nadu Newsprint and Papers Limited (TNPL) is an enterprise promoted by Government of Tamil Nadu. The Unit- I of TNPL at Kagithapuram, Karur district was commissioned in October 1985 with an installed capacity of 90,000 TPA of Newsprint/Fine Paper, in a single machine. Over a period of time, TNPL has added two more paper machines, besides upgrading the existing Paper machine. The increased production capacity of writing and printing papers has made TNPL as

Tamil Nadu Newsprint and Papers Limited (TNPL) is an enterprise promoted by Government of Tamil Nadu. The Unit- I of TNPL at Kagithapuram, Karur district was commissioned in October 1985 with an installed capacity of 90,000 TPA of Newsprint/Fine Paper, in a single machine. Over a period of time, TNPL has added two more paper machines, besides upgrading the existing Paper machine. The increased production capacity of writing and printing papers has made TNPL as one of the largest bagasse- a residue of sugar cane, as primary raw material based paper mill in the world. With an increased demand, the company has expanded the pulping capacity by way of installing new chemical hardwood line, upgrading the chemical bagasse pulp line and setting up a new deinked pulp line besides adopting ECF bleaching in all the chemical pulp lines. Simultaneously, the company has also increased the power plant capacity to meet the steam and energy requirement of the expanded mill.

All the three modern high-speed paper machines are capable of producing verities of Writing and Printing papers and are equipped with state-of-the art automation to ensure consistent quality. The Company has earned a reputation as a pre-eminent player of manufacturing paper from bagasse having a world-wide creditability in the trade. Today, TNPL Unit-I is self sufficient in terms of power and pulp.

Business area of the company

TNPL is an acknowledged leader in the technology of manufacture of paper from bagasse.

Products

Paper Products

  • Elegant Printing (TES)
  • Radiant Print Stationery (RDS)
  • Radiant Print Platinum (RDP)
  • Pigmented Paper Platinum (TPP)
  • Print fine Platinum (PRF)
  • Tnpl Copier
  • Eco Maplitho (CEM)Dlx
  • Copy Crown
  • Hi-Tech Maplitho
  • Printers Choice (TPC)
  • Ace Marvel (CRT)
  • TNPL Greenpal

Paper Board Products

  • Aura Fold Plus (APF)
  • Aura Fold Premium (APM)
  • Aura Fold Eco (AFE)
  • Aura Fold Eco Blu (AEB)
  • Aura Fold Blu (AFB)
  • Aura Brilliant Plus (ABP)
  • Aura Grafik (AUG)
  • Aura Ace (ACE)
  • Aura Celebration (AUC)
  • Aura Celebration Plus (ACP)
  • Aura Flute (AFT)
  • Aura Flute Supreme (AFS)
  • Aura Pearl (AUP)
  • Aura Green Board (AGB)
  • Aura Green Match (AGM)
  • Aura Green Liner (AGL)
  • Aura Green Liner Uncoated (AGU)

Cement Products

  • Portland Pozzolana Cement (PPC)
  • Ordinary Portland Cement (OPC)

Awards

2016-17

  • TNPL has bagged the “IPMA Paper Mill of the Year award” for the year 2015-16 from Indian Paper Manufacturers’ Association (IPMA), New Delhi. This award is given once in two years for the overall best performance in Industry. TNPL has received this prestigious award five times out of seven occasions and three times in a row.
  • Dun & Bradstreet Mumbai has selected TNPL as the “Top Indian Company under the sector Paper & Pulp for “Dun & Bradstreet Corporate Awards 2017”, sixth time in a row.
  • TNPL’s project “Lime Sludge and Fly ash Management (LSFM) System” has been selected and awarded “Most Innovative Project” award for the “Best Practices in Waste Management during GreenCo Best Practices Award 2016 competition conducted by CII-Sohrabji Godrej Green Business Centre, Hyderabad on 15th June, 2016 at Hyderabad.
  • During the year, the company received the Top Export Award for the year 2014-15 from CAPEXIL (Chemicals & Allied Products Export Promotion Council of India). in recognition of the company’s export achievement in respect of Paper, Paper Board & Paper Products Panel.

2017-18

  • Mission Energy Foundation, Maharashtra has awarded TNPL “Fly ash utilization 2018 Award” in the category of Green Building Material - Cement.
  • TNPL has been awarded as “Water Stewardship Award ” during India Corporate Governance and Sustainability Vision Summit 2018 New Delhi conducted by Indian Chamber of Commerce.
  • TNPL has been selected and awarded as “Efficient Water Management Unit” at Confederation of Indian Industry (CII) for Excellence in Water Management - 2017 “Within the Fence” during Water Innovation Summit 2017 at New Delhi.
  • TNPL received “Most Innovative Project” award for the Environmental Best Practices Award 2017 conducted by CII-Sohrabji Godrej Green Business Centre, Hyderabad.
  • TNPL has bagged the 18th National Award for Excellence in Energy Management for the year 2017 from Confederation of Indian Industry.

2018-19

  • TNPL bagged the “Most Innovative Project” award for Environmental Best Practices Award 2018 conducted by CII - Sohrabji Godrej Green Business Centre, Hyderabad during June’18 at Chennai
  • TNPL bagged first place during “15th National Award for Excellence in Cost Management 2017 - “Good Performance Award” under the category MANUFACTURING - PUBLIC Organization - from the Institute of Cost Accountants of India.” during October 2018 at New Delhi.
  • TNPL received the IEI Industry Excellence Award 2018, from Institution of Engineers India (IEI, Kolkata). This award has been instituted to recognize industry leaders for their innovation, excellence in engineering and operation & services, their capacity to sustain excellence in a competitive manner.
  • TNPL have been awarded a Special Commendation for prestigious Golden Peacock National Quality Award for the year 2018-19, by the Institute of Directors (IOD), India. The award was presented to TNPL at a convention conducted by IOD at Dubai during March 2019.

2019-20

  • TNPL has been honoured with the “Water Stewardship Award” by M/s Indian Chamber of Commerce, Kolkatta for the third time (2018, 2019 and 2020) during India Corporate Governance and Sustainability Vision Summit 2020 held on 18.02.2020 at New Delhi.
  • TNPL being one among the 11 companies, received both shield and certificate for “Industry Excellence Award” during IEI Centenary Industry Excellence Award Ceremony, New Delhi in the month of November, 2019.
  • TNPL has been awarded the “Golden Peacock Award for Energy Efficiency” for the year 2019 by Institute of Directors (IOD), India during 21st World Congress on Environment Management and Climate Change and Golden Peacock Awards Presentation Ceremony at JW Marriot Hotel, Bengaluru in the month of July, 2019.

Milestones and achievements

2015-16

  • The company has set up a state-of-the-art Multilayer Double Coated Board Plant with an annual capacity of 200,000 MT per annum as a green field project in Mondipatti village, Manaparai taluk, Trichy District.
  • The Company has setup a Conversion Centre of Paper and packaging Board (CCPPB) Unit in the 38.40 acres of land in Mayanur in Karur District.
  • The Company has received the “Green-Co Gold Rating” from Confederation of Indian Industry - Godrej Green Business Centre (CII - Godrej GBC), Hyderabad.

2016-17

  • Sales crossed Rs. 3000 crore mark which is the highest in the Company’s history.
  • The packaging paper board plant commenced commercial production on 1st May, 2016. Board production during the 11 month period was 83,742 MT, equivalent to 53% of capacity.
  • The Paper & pulp mill have implemented various water conservation projects and reduced the overall consumption of water to about 40 KL Per ton of paper which is one of the lowest in paper industry.

2017-18

  • The Company’s turnover during the year 2017-18 is 3037.02 crore.
  • Market Capitalization crossed Rs 3453.61crore mark first time during the year

2018-19

  • The Company’s turnover during the year 2018-19 is Rs 4040.87 crore.
  • During the Year the Paper production was 432572 MT.
  • 8220 lakh units of power were generated of which 7740 lakh units were consumed and 585 lakh units were exported to the state grid.
  • The bio-methanation plants have generated methane gas of 65.23 lakh m during 2018-19.
  • The Paper & pulp mill have implemented various water conservation projects and reduced the overall consumption of water to 32 KL/per ton of paper which is one of the lowest in paper industry.
  • The Company has reduced overall debt (Term Loan and Working Capital) to an extent of Rs 466.94 crore during the financial year 2018-19.

2019-20

  • The Company’s turnover during the year 2019-20 is Rs 3437.60 crore.
  • During the year the Paper production was 392250 MT.
  • Achieved Paper sales of 378022 MT during the FY 2019-20. Domestic sales accounts for 81% and Exports at 19%.
  • The packaging paper board sales during the year 2019-20 was 171785 MT.
  • Market Capitalization was Rs 615.63 as on March 31, 2020.
  • 330358 tonnes of Hardwood, Chemical Bagasse Pulp and Deinked Pulp were produced during the year.
  • Generated 5895 lakh units of power, 5959 lakh units were internally consumed and 61 lakh units exported to the state grid (Unit-1).
  • The bio-methanation plants have generated methane gas of 62.13 lakh m during 2019-20. The methane gas was consumed in lime kiln and power boilers in replacement furnace oil 3744 KL.
  • The wind farms with an installed capacity of 35.5 MV capacity have generated 405 lakh Kwh units of 'Green Power’ during the year.
  • The Paper & pulp mill have implemented various water conservation projects and reduced the overall consumption of water to 35 KL/per ton of paper which is one of the lowest in paper industry.
  • TNPL is the first and only company in the Indian Paper Industry to have established a cement manufacturing factory to convert the mill wastes lime sludge and flyash into high grade cement as part of its solid waste management system. During the year, the Company has manufactured 252303 MT of cement.
  • TNPL has been awarded as Winner for “Golden Peacock Award for Energy Efficiency” for the year 2019 by Institute Of Directors (IOD), India's during 21st World Congress on Environment Management and Climate Change and Golden Peacock Awards Presentation Ceremony at JW Marriott Hotel, Bengaluru in the month of July'2019.
  • Recertification audit was completed by Feb 2020 and the audit team had recommended to renew the ISO 9001 certificate and issue a new certificate.
  • TNPL unit 1 has met the requirements in accordance with the GreenCo Rating System and is being re-rated “GreenCo Gold” under Version 3 of the GreenCo guidelines
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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