Emami Paper Mills Faces Financial Challenges Amid Record Dividend Payouts

Emami Paper Mills, a microcap player in the Paper, Forest & Jute Products industry, has recently undergone a financial trend adjustment reflecting its current performance metrics. The company reported a negative financial performance for the quarter ending September 2025, with its score declining over the past three months.
On a positive note, Emami Paper has achieved its highest dividend per share at Rs 1.60, alongside a robust dividend payout ratio of 37.22%. However, several challenges persist. The company's profit after tax for the latest six months has contracted significantly, showing a decline of 36.78% to Rs 12.89 crore. Additionally, key performance indicators such as return on capital employed (ROCE) and debtors turnover ratio are at their lowest, with ROCE at 1.69% and a concerning debt-equity ratio of 8.36 times. Furthermore, net sales for the quarter have also dipped to Rs 450.61 crore, and non-operating income constitutes a substantial 48.76% of profit before tax.

In terms of market performance, Emami Paper's stock has shown mixed results compared to the Sensex. While it recorded a slight gain over the past week and month, its year-to-date return remains negative, contrasting sharply with the Sensex's positive trajectory. Over the longer term, the stock has underperformed significantly against the Sensex, particularly over three and five years.