Star Paper Mills Ltd. Stock Falls to 52-Week Low of Rs.139.65

Stock Price Movement and Market Context

On 2 Feb 2026, Star Paper Mills Ltd. recorded an intraday low of Rs.139.65, representing a 3.02% drop from the previous close. This decline outpaced the sector’s underperformance by 1.74%, signalling a sharper negative sentiment towards the stock relative to its peers. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, underscoring a sustained downward momentum.

In contrast, the broader market exhibited resilience on the same day. The Sensex, after opening 167.26 points lower, rebounded sharply by 657.35 points to close at 81,213.03, a gain of 0.61%. Despite this recovery, the Sensex remains below its 50-day moving average, though the 50DMA itself is positioned above the 200DMA, indicating a mixed technical picture. Mega-cap stocks led the market rally, highlighting a divergence between large-cap strength and the performance of mid and small-cap stocks such as Star Paper Mills.

Long-Term Price Performance

Over the past year, Star Paper Mills has delivered a negative return of 26.21%, significantly lagging behind the Sensex’s positive 4.78% gain. The stock’s 52-week high was Rs.192.90, indicating a substantial decline of approximately 27.6% from that peak. This underperformance extends beyond the last year, with the stock also trailing the BSE500 index over the last three years and the recent three-month period.

Financial Metrics and Profitability Concerns

Star Paper Mills’ financial indicators reveal areas of concern that have contributed to its subdued market performance. The company’s average Return on Equity (ROE) stands at 8.58%, a figure that reflects limited profitability relative to shareholders’ funds. This low ROE is a key factor in the stock’s current grading as a Strong Sell, an upgrade from its previous Sell rating as of 1 Feb 2026, according to MarketsMOJO’s assessment.

Over the last five years, the company’s net sales have grown at an annualised rate of 10.03%, while operating profit has increased by 7.54% annually. These growth rates, while positive, are modest and have not translated into stronger earnings or market confidence. The latest quarterly results for September 2025 further illustrate this trend, with Profit Before Tax (excluding other income) falling by 28.84% to Rs.5.28 crores and Profit After Tax for the nine-month period declining by 27.93% to Rs.30.84 crores.

Capital Structure and Shareholding Patterns

Despite the challenges, Star Paper Mills maintains a conservative capital structure, with an average Debt to Equity ratio of zero, indicating no reliance on debt financing. However, a notable factor weighing on the stock is the high level of promoter share pledging, with 47.21% of promoter shares pledged. This elevated pledge ratio can exert additional downward pressure on the stock price, especially in volatile or declining markets.

Valuation and Market Perception

The stock’s valuation metrics present a mixed picture. With a Price to Book Value ratio of 0.3 and a ROE of 5.5% in the recent period, the company’s shares appear attractively valued on a book basis. Nonetheless, the stock trades at a premium relative to its peers’ historical valuations, suggesting that the market may be pricing in risks or uncertainties specific to Star Paper Mills. Profitability has also deteriorated, with profits falling by 34.5% over the past year, reinforcing the cautious stance among investors.

Summary of Key Performance Indicators

To summarise, Star Paper Mills Ltd. currently holds a Mojo Score of 28.0 and a Mojo Grade of Strong Sell, reflecting deteriorated fundamentals and market sentiment. The company’s market capitalisation grade is rated at 4, indicating a mid-tier market cap within its sector. The stock’s recent price action, combined with its financial results and shareholding structure, paints a picture of a company facing multiple headwinds within the Paper, Forest & Jute Products industry.

While the broader market and mega-cap stocks have shown resilience, Star Paper Mills’ share price decline to Rs.139.65 marks a significant milestone in its recent performance trajectory, highlighting the challenges it faces in regaining investor confidence and market momentum.

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