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West Coast Paper Mills Ltd. Stock Analysis

Small Cap
Evaluated by 738 users | BSE: 500444 | NSE: WSTCSTPAPR |
Paper & Paper Products
West Coast Paper Mills, incorporated in 1955, is engaged in manufacturing paper, paperboard and coated duplex board.The company is flagship company of Kolkata based- SK Bangur Group.The company contributes nearly 60% to Group’s revenue. In the year 1955, company was established at...

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 6.95%3.19%5.5%3.53%5.4%6.49%14.01%22.32%24.24%18%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,0711,3051,4551,5621,6481,7001,7691,7101,9791,982
Y-o-Y Gr. Rt.-21.9%11.5%7.4%5.5%3.1%4.1%-3.3%15.7%0.2%
Adjusted EPS (Rs.) 14.331.486.941.165.575.5719.4633.5945.140.15
Y-o-Y Gr. Rt.--89.7%368.9%-83.3%380.2%0%249.4%72.6%34.3%-11%
Book Value per Share (Rs.) 96.4990.7690.590.3490.577.7996.35126.61166.66195.73
Adjusted Net Profit 89.99.345.87.736.836.8129222298265
Net Op. Cash Flow (Rs. Cr.) 69.518326315025798.2434326395544
Debt to Cash Flow from Ops 17.436.94.117.133.557.581.040.990.921.37
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.
West Coast 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 7.1%3.8%3.9%0.2%
Adjusted EPS 12.1%48.5%27.3%-11%
Book Value per Share 8.216.726.717.4
Share Price 9.6% 20% -4.4% -34.4%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 14.141.57.851.286.166.6122.2430.0230.6722.11
Operating Profit Margin (%) 22.3217.3318.4613.414.9114.6819.1121.2326.0124.3
Net Profit Margin (%) 8.40.713.150.492.232.167.2612.9715.0513.38
Debt to Equity 1.812.221.811.791.521.450.710.380.330.58
Working Capital Days 147146139151157132108117114102
Cash Conversion Cycle 30626263635746475465
Entity Percentage Holding
Promoters 56.17%
Institutions 13.96%
Non-Institutions 29.87%
Pledged *0.490.490.490.490.490.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

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

West Coast Paper Mills Ltd. earnings have grown by 48.5%, whereas share price has appreciated 20% 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 West Coast Paper Mills Ltd. share prices over the last 10 years. Here is what we found out:

West Coast Paper Mills Ltd. share price has appreciated 5% annually over the past ten years.

West Coast Paper Mills, incorporated in 1955, is engaged in manufacturing paper, paperboard and coated duplex board.The company is flagship company of Kolkata based- SK Bangur Group.

The company contributes nearly 60% to Group’s revenue. In the year 1955, company was established at Dandeli, Karnataka. Products manufactured by company cater the writing, printing and packaging demand of millions of customers across the globe.

West Coast has received ISO 9001:2000 certification by

West Coast Paper Mills, incorporated in 1955, is engaged in manufacturing paper, paperboard and coated duplex board.The company is flagship company of Kolkata based- SK Bangur Group.

The company contributes nearly 60% to Group’s revenue. In the year 1955, company was established at Dandeli, Karnataka. Products manufactured by company cater the writing, printing and packaging demand of millions of customers across the globe.

West Coast has received ISO 9001:2000 certification by the DNV, the Netherlands for quality management.

The company uses Eucalyptus, Casuarina, Subabul and other Hardwood as a raw material. It procures these raw materials from Andhra Pradesh, Tamil Nadu and Pondicherry. It imports a small quanitity of raw materials for production of specialty papers. West Coast Paper's annual raw material requirement is about 3,50,000 MT per annum.

In order to meet power requirement the company has set up 4 turbines with capacity totalling to 40.30 MW, 3 multi-fuel based power plants of 11.84 MW - aggregate captive power generating capacity being 52.14 MW. The company also supplies power of 8,500 KVA to the Karnataka Power Transmission Corporation.

The paper manufacturer has installed Enterprise Resource Planning System (ERP) in links mills with corporate offices and branch offices. It Rs.4.50 crore worth ERP solutions has been set up by Tata Consultancy Services.

The company has many first to add to its credentials. It was first in Asia to install twin-wire Papriformer paper machine; first to have well equipped research centre attached with a paper mill; and first in India to establish the use of sulphuric acid as a protective agent in conventional bleaching, amongst others.

The company exports its products to Malaysia, Egypt, Middle East, Kenya, Indonesia, Fiji, Mauritius and Greece, amongst others.

SKB Group

The SKB (S K Bangur) group has business interest in area of paper, power and telecom cables, chemicals, tea, coffee and rubber plantations and information technology. The group is managed by Chairman S K Bangur. It operates companies namely The West Coast Paper Mills, Sudarshan Telecom, Rama Newsprint & Paper Mills, Fort Gloster Industries, Jayshree Chemicals, Kil Kotagiri Tea & Coffee Estate Company, Thirumbadi Rubber Company, Speciality coating & Laminations and Global IT Services.

Future Strategy

West Coast Paper Mills plans to undertake various strategic initiatives to widen its product portfolio as well as global presence.

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

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