South India Paper Mills Ltd (SIPAPER) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sh. Ajit Pulp

Sh. Krishna Pap.

S I Paper Mills

Shreyans Inds.

Indian Wood Prod

Magnum Ventures

Nath Industries

Ganga Papers

AI Champ.Inds.

Three M Paper

Aaradhya Dis.

Why is South India Paper Mills Ltd ?

Weak Long Term Fundamental Strength with a -5.38% CAGR growth in Operating Profits over the last 5 years

Low ability to service debt as the company has a high Debt to EBITDA ratio of 5.90 times
The company has been able to generate a Return on Equity (avg) of 2.30% signifying low profitability per unit of shareholders funds

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -21.74% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is S I Paper Mills for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

S I Paper Mills

-21.74%

-0.44

49.58%

Sensex

5.36%

0.46

11.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.25%

EBIT Growth (5y)

-5.38%

EBIT to Interest (avg)

1.41

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.79

Sales to Capital Employed (avg)

0.85

Tax Ratio

21.74%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.40%

ROCE (avg)

3.92%

ROE (avg)

2.30%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.74

EV to EBIT

19.39

EV to EBITDA

9.80

EV to Capital Employed

0.86

EV to Sales

0.83

PEG Ratio

Dividend Yield

ROCE (Latest)

4.42%

ROE (Latest)

-0.94%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

27What is working for the Company

OPERATING CF(Y)

Highest at Rs 40.29 Cr

OPERATING PROFIT TO INTEREST(Q)

Highest at 2.51 times

NET SALES(Q)

Highest at Rs 111.57 cr

PBDIT(Q)

Highest at Rs 12.93 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 11.59%

PBT LESS OI(Q)

Highest at Rs 3.60 cr.

PAT(Q)

Highest at Rs 2.81 cr.

EPS(Q)

Highest at Rs 1.50

-2What is not working for the Company

DPS(Y)

Lowest at Rs 0.00

DPR(Y)

Lowest at 0.00%

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Here's what is working for S I Paper Mills

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 3.60 cr has Grown at 254.8% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs -2.33 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 2.81 cr has Grown at 267.8% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs -1.68 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Highest at 2.51 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Cash Flow - Annually

Highest at Rs 40.29 Cr

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (Rs Cr)

Net Sales - Quarterly

Highest at Rs 111.57 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 12.93 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 11.59%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 3.60 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 2.81 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 1.50

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for S I Paper Mills

Dividend per Share (DPS) - Annually

Lowest at Rs 0.00

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (Rs)

Dividend Payout Ratio (DPR) - Annually

Lowest at 0.00%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)