ScoreWhy is Emami Paper Mills Ltd ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.17 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.17 times
2
Poor long term growth as Net Sales has grown by an annual rate of 9.41% and Operating profit at 3.13% over the last 5 years
3
With a growth in Net Profit of 85.4%, the company declared Very Positive results in Mar 26
- The company has declared positive results for the last 2 consecutive quarters
- PBT LESS OI(Q) At Rs 32.44 cr has Grown at 199.4% (vs previous 4Q average)
- PAT(Q) At Rs 30.66 cr has Grown at 246.2% (vs previous 4Q average)
- OPERATING PROFIT TO INTEREST(Q) Highest at 3.94 times
4
With ROCE of 10.2, it has a Attractive valuation with a 0.9 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -17.15%, its profits have risen by 139% ; the PEG ratio of the company is 0.1
5
Despite the size of the company, domestic mutual funds hold only 0% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Emami Paper should be less than 10%
- Overall Portfolio exposure to Paper, Forest & Jute Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Emami Paper for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Emami Paper
-16.28%
-0.40
42.44%
Sensex
-9.62%
-0.81
13.06%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
9.41%
EBIT Growth (5y)
3.13%
EBIT to Interest (avg)
2.29
Debt to EBITDA (avg)
3.70
Net Debt to Equity (avg)
1.42
Sales to Capital Employed (avg)
1.40
Tax Ratio
34.25%
Dividend Payout Ratio
37.22%
Pledged Shares
0
Institutional Holding
0.59%
ROCE (avg)
11.30%
ROE (avg)
10.74%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
8
Industry P/E
8
Price to Book Value
0.84
EV to EBIT
9.20
EV to EBITDA
6.63
EV to Capital Employed
0.93
EV to Sales
0.68
PEG Ratio
0.06
Dividend Yield
2.00%
ROCE (Latest)
10.16%
ROE (Latest)
10.80%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend25What is working for the Company
PBT LESS OI(Q)
At Rs 32.44 cr has Grown at 199.4% (vs previous 4Q average
PAT(Q)
At Rs 30.66 cr has Grown at 246.2% (vs previous 4Q average
OPERATING PROFIT TO INTEREST(Q)
Highest at 3.94 times
PBDIT(Q)
Highest at Rs 62.16 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 12.52%
EPS(Q)
Highest at Rs 5.21
-2What is not working for the Company
DEBT-EQUITY RATIO(HY)
Highest at 1.42 times
Loading Valuation Snapshot...
Here's what is working for Emami Paper
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 32.44 cr has Grown at 199.4% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 10.84 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 30.66 cr has Grown at 246.2% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 8.85 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Operating Profit to Interest - Quarterly
Highest at 3.94 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Profit After Tax (PAT) - Quarterly
Highest at Rs 30.66 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 62.16 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 12.52%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 32.44 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 5.21
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Emami Paper
Debt-Equity Ratio - Half Yearly
Highest at 1.42 times and Grown
each half year in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
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