Seshasayee Paper & Boards Ltd (SESHAPAPER) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

N R Agarwal Inds

T N Newsprint

JK Paper

West Coast Paper

KS Smart Technlo

Cheviot Company

Seshasayee Paper

Pudumjee Paper

Kuantum Papers

Andhra Paper

A B Real Estate

Why is Seshasayee Paper & Boards Ltd ?

Poor long term growth as Operating profit has grown by an annual rate -6.15% of over the last 5 years

Flat results in Mar 26

CASH AND CASH EQUIVALENTS(HY) Lowest at Rs 146.07 cr
DEBTORS TURNOVER RATIO(HY) Lowest at 9.00 times
OPERATING PROFIT TO NET SALES (Q) Lowest at 3.99%

With ROE of 4, it has a Expensive valuation with a 0.7 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -19.09%, its profits have fallen by -24.4%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -19.09% 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 Seshasayee Paper for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Seshasayee Paper

-19.09%

-0.57

33.43%

Sensex

-6.4%

-0.49

12.94%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.94%

EBIT Growth (5y)

-6.15%

EBIT to Interest (avg)

69.75

Debt to EBITDA (avg)

0.31

Net Debt to Equity (avg)

-0.07

Sales to Capital Employed (avg)

0.98

Tax Ratio

22.46%

Dividend Payout Ratio

11.12%

Pledged Shares

Institutional Holding

27.31%

ROCE (avg)

17.10%

ROE (avg)

11.33%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.73

EV to EBIT

26.37

EV to EBITDA

14.00

EV to Capital Employed

0.71

EV to Sales

0.78

PEG Ratio

Dividend Yield

ROCE (Latest)

2.68%

ROE (Latest)

4.04%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Bullish

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

5What is working for the Company

NET SALES(Q)

Highest at Rs 591.84 cr

PBT LESS OI(Q)

Highest at Rs 20.42 cr.

-5What is not working for the Company

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 146.07 cr

DEBTORS TURNOVER RATIO(HY)

Lowest at 9.00 times

OPERATING PROFIT TO NET SALES (Q)

Lowest at 3.99%

NON-OPERATING INCOME(Q)

is 36.29 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is working for Seshasayee Paper

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 20.42 cr has Grown at 82.32%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Net Sales - Quarterly

Highest at Rs 591.84 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 20.42 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Here's what is not working for Seshasayee Paper

Operating Profit Margin - Quarterly

Lowest at 3.99%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Non Operating Income - Quarterly

is 36.29 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 146.07 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio- Half Yearly

Lowest at 9.00 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio