Kuantum Papers Faces Financial Struggles Amid Declining Sales and High Debt Levels

Mar 25 2025 08:04 AM IST
share
Share Via
Kuantum Papers, a microcap in the Paper & Paper Products sector, has recently adjusted its evaluation score amid challenging market conditions. The company reported a significant decline in net sales and has faced negative results for five consecutive quarters, indicating ongoing financial difficulties and limited profitability.
Kuantum Papers, a microcap company in the Paper & Paper Products industry, has recently undergone an evaluation adjustment that reflects its current market dynamics. The revision in its score highlights several underlying trends that are shaping the company's financial landscape.

The company has reported a significant decline in net sales, with a year-over-year drop of -10.41%, contributing to a challenging financial performance in the latest quarter. This decline is compounded by a high Debt to EBITDA ratio of 5.76 times, indicating potential difficulties in servicing its debt obligations. Additionally, the company's return on equity stands at an average of 9.75%, suggesting limited profitability relative to shareholders' funds.

Over the past five years, Kuantum Papers has experienced modest growth in net sales at an annual rate of 7.63% and operating profit at 11.99%. However, the company has faced negative results for five consecutive quarters, with a notable decrease in profit after tax of -50.2% in the latest quarter.

Despite these challenges, the stock is technically positioned in a mildly bearish range, with various technical indicators reflecting this sentiment. The company's valuation metrics, including a return on capital employed of 13.7 and an enterprise value to capital employed ratio of 0.9, suggest it is trading at a discount compared to its peers.

For those interested in further insights, you can Discover the Latest Mojo Score and Financial Trend Performance - SignUp in less than 2 Minutes and get FREE Premium Access.
{{stockdata.stock.stock_name.value}} Live

{{stockdata.stock.price.value}} {{stockdata.stock.price_difference.value}} ({{stockdata.stock.price_percentage.value}}%)

{{stockdata.stock.date.value}} | BSE+NSE Vol: {{stockdata.index_name}} Vol: {{stockdata.stock.bse_nse_vol.value}} ({{stockdata.stock.bse_nse_vol_per.value}}%)


Our weekly and monthly stock recommendations are here
Loading...
{{!sm.blur ? sm.comp_name : ''}}
Industry
{{sm.old_ind_name }}
Market Cap
{{sm.mcapsizerank }}
Date of Entry
{{sm.date }}
Entry Price
Target Price
{{sm.target_price }} ({{sm.performance_target }}%)
Holding Duration
{{sm.target_duration }}
Last 1 Year Return
{{sm.performance_1y}}%
{{sm.comp_name}} price as on {{sm.todays_date}}
{{sm.price_as_on}} ({{sm.performance}}%)
Industry
{{sm.old_ind_name}}
Market Cap
{{sm.mcapsizerank}}
Date of Entry
{{sm.date}}
Entry Price
{{sm.opening_price}}
Last 1 Year Return
{{sm.performance_1y}}%
Related News