Stock Price Movement and Market Context
On 28 Jan 2026, Star Paper Mills Ltd. recorded an intraday low of Rs.140, representing a 2.78% decline on the day. This marks the lowest price level the stock has seen in the past year, down from its 52-week high of Rs.193.65. The stock has underperformed its sector, which gained 2.01% on the same day, and has lagged behind the broader market, with the Sensex rising 0.49% to close at 82,256.68.
Over the last two trading sessions, the stock has declined by 7.19%, reflecting a consecutive fall that contrasts with the sector’s positive momentum. Star Paper Mills is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward pressure on the stock price.
Financial Performance and Profitability Metrics
The company’s financial indicators reveal challenges in profitability and growth. Star Paper Mills has reported a Return on Equity (ROE) of 8.58%, which is considered low and indicative of limited profitability relative to shareholders’ funds. This figure has contributed to the stock’s Mojo Grade being rated as a Sell, an improvement from a previous Strong Sell rating assigned on 21 Jan 2026, but still reflecting caution.
Net sales have grown at an annual rate of 10.03% over the past five years, while operating profit has increased at a slower pace of 7.54%. These growth rates suggest modest expansion but raise questions about the company’s ability to generate significant earnings growth.
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Recent Quarterly and Annual Results
The company’s recent quarterly results have shown a decline in profitability. Profit Before Tax (PBT) excluding other income for the quarter stood at Rs.5.28 crores, down by 28.84%. The nine-month Profit After Tax (PAT) was Rs.30.84 crores, reflecting a decrease of 27.93%. Operating cash flow for the year was reported at Rs.14.84 crores, the lowest level recorded in recent periods.
These figures highlight a contraction in earnings and cash generation, which have contributed to the stock’s downward trajectory over the past year.
Shareholding and Market Capitalisation Considerations
Promoter shareholding in Star Paper Mills stands at 47.21% pledged, a factor that can exert additional pressure on the stock price during market downturns. High levels of pledged shares often raise concerns about potential forced selling, which may exacerbate price declines.
The company’s market capitalisation grade is rated at 4, reflecting its mid-tier size within the sector. Despite this, the stock’s Mojo Score remains low at 31.0, consistent with the Sell rating.
Sector and Market Comparison
While Star Paper Mills has struggled, the Paper & Paper Products sector has gained 2.01% on the day, indicating relative strength in the industry. The Sensex itself is trading near its 52-week high, just 4.74% below the peak of 86,159.02, supported by gains in mega-cap stocks.
Over the past year, Star Paper Mills has delivered a negative return of 24.43%, significantly underperforming the Sensex’s positive 8.34% return. This underperformance extends to the BSE500 index over multiple time frames, including the last three years, one year, and three months.
Valuation and Debt Profile
The company maintains a low average debt-to-equity ratio of zero, indicating a debt-free balance sheet. This is a positive aspect in terms of financial risk management. However, the stock’s valuation metrics present a mixed picture. With a Price to Book Value of 0.3 and an ROE of 5.5%, the stock is considered to have a very attractive valuation on a price-to-book basis.
Despite this, the stock trades at a premium relative to its peers’ historical valuations, which may reflect market expectations or other factors not directly linked to recent financial performance.
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Summary of Performance Trends
Star Paper Mills Ltd. has experienced a challenging period marked by declining stock prices, subdued profitability, and underwhelming growth rates. The stock’s fall to Rs.140 represents a significant technical low, underscoring the market’s cautious stance towards the company.
While the company benefits from a debt-free capital structure and attractive price-to-book valuation, its low ROE and recent earnings declines have weighed on investor sentiment. The high proportion of pledged promoter shares adds an additional layer of complexity to the stock’s price dynamics.
In contrast to the broader market and sector gains, Star Paper Mills’ performance has been notably weaker, reflecting a combination of financial and market factors that have influenced its valuation and trading levels over the past year.
Conclusion
The new 52-week low of Rs.140 for Star Paper Mills Ltd. highlights the stock’s ongoing challenges amid a generally positive market environment. The company’s financial metrics, including profitability and growth, remain subdued, while shareholding patterns and valuation considerations continue to shape market perceptions. This price level serves as a key reference point for assessing the stock’s recent trajectory within the Paper, Forest & Jute Products sector.
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