Recent Price Movement and Market Context
On 24 Nov 2025, Seshasayee Paper & Boards opened with a gap down of 2.44%, touching an intraday low of Rs.240, which represents its lowest price point in the past year. The stock has recorded a consecutive two-day decline, resulting in a cumulative return of -1.61% over this period. This underperformance extends to the sector level, with the stock lagging the Paper, Forest & Jute Products sector by 0.35% on the day.
In contrast, the broader market has shown resilience. The Sensex opened 88.12 points higher and is currently trading at 85,400.21, reflecting a 0.2% gain. The benchmark index is nearing its 52-week high of 85,801.70, supported by mega-cap stocks and a three-week consecutive rise amounting to 2.62%. The Sensex’s 50-day moving average remains above its 200-day moving average, signalling a generally bullish market environment.
Technical Indicators Highlight Weakness
Seshasayee Paper & Boards is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning underscores the stock’s sustained downward momentum and the absence of short-term recovery signals. The gap down opening and the new 52-week low reinforce the prevailing bearish sentiment surrounding the stock.
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Financial Performance Over the Past Year
Over the last twelve months, Seshasayee Paper & Boards has recorded a total return of -15.77%, a stark contrast to the Sensex’s 7.95% gain during the same period. The stock’s 52-week high was Rs.359, indicating a decline of approximately 33% from that peak to the current low of Rs.240.
The company’s net sales have shown a contraction of 13.09%, with quarterly results reflecting a continuation of negative trends. The latest quarter reported a profit before tax (excluding other income) of Rs.15.37 crore, which is 29.20% lower than the previous comparable period. Similarly, the profit after tax for the quarter stood at Rs.22.41 crore, down by 21.3%.
Return on capital employed (ROCE) for the half-year is at a low 3.84%, while return on equity (ROE) is recorded at 4%. These figures indicate subdued profitability relative to the company’s capital base. The valuation metrics show a price-to-book value of 0.8, suggesting the stock is trading at a premium compared to its peers’ historical averages despite the financial pressures.
Long-Term Growth and Profitability Trends
Examining the company’s performance over the last five years reveals an annualised decline in operating profit of 25.78%. The company has reported negative results for nine consecutive quarters, with the latest quarter continuing this pattern. This extended period of subdued earnings growth has contributed to the stock’s underperformance relative to the BSE500 index, which the stock has lagged in each of the past three annual periods.
Profitability has also been affected, with profits falling by 57.4% over the past year. These figures highlight the challenges faced by Seshasayee Paper & Boards in reversing its earnings trajectory and improving financial health.
Balance Sheet and Shareholding Structure
The company maintains a low average debt-to-equity ratio, effectively at zero, indicating minimal leverage on its balance sheet. This conservative capital structure may provide some cushion against financial stress but has not translated into improved market performance.
Institutional investors hold a significant stake of 27.39%, reflecting a substantial presence of entities with resources to analyse company fundamentals. Despite this, the stock’s price has continued to trend lower, suggesting that market sentiment remains cautious.
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Comparative Market Performance
While Seshasayee Paper & Boards has faced a challenging year, the broader market environment has been more favourable. The Sensex’s recent gains and proximity to its 52-week high contrast with the stock’s persistent decline. Mega-cap stocks have led the market’s upward movement, whereas Seshasayee Paper & Boards, a smaller-cap entity within the Paper, Forest & Jute Products sector, has not mirrored this trend.
The stock’s underperformance relative to the sector and benchmark indices over multiple years highlights the divergence in investor sentiment and company fundamentals.
Summary of Key Metrics
To summarise, Seshasayee Paper & Boards’ stock price has reached Rs.240, its lowest level in the past year, following a series of quarterly results showing contraction in sales and profits. The company’s profitability ratios remain subdued, and the stock trades below all major moving averages. Despite a low debt position and significant institutional shareholding, the stock has underperformed the broader market and its sector peers.
These factors collectively illustrate the current challenges faced by Seshasayee Paper & Boards in the capital markets and the ongoing pressures reflected in its share price.
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