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

JK Paper

Emami Paper

West Coast Paper

T N Newsprint

Cheviot Company

Pudumjee Paper

Seshasayee Paper

Andhra Paper

String Metaverse

KS Smart Technlo

Why is Seshasayee Paper & Boards Ltd ?

The company is Net-Debt Free

Poor long term growth as Operating profit has grown by an annual rate 1.23% of over the last 5 years

Positive results in Jun 26

DPR(Y) Highest at 17.76%
NET SALES(Q) At Rs 492.08 cr has Grown at 27.68%
PBDIT(Q) Highest at Rs 43.91 cr.

With ROE of 4, it has a Very Expensive valuation with a 0.8 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 -9.14%, its profits have risen by 13% ; the PEG ratio of the company is 1.2

High Institutional Holdings at 26.96%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -9.14% 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 hold?

Overall Portfolio exposure to Seshasayee 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 Seshasayee Paper for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Seshasayee Paper

-9.14%

-0.31

29.37%

Sensex

-8.95%

-0.66

13.46%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.11%

EBIT Growth (5y)

1.23%

EBIT to Interest (avg)

66.32

Debt to EBITDA (avg)

0.31

Net Debt to Equity (avg)

-0.07

Sales to Capital Employed (avg)

0.98

Tax Ratio

22.91%

Dividend Payout Ratio

14.59%

Pledged Shares

Institutional Holding

26.96%

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

0.78

EV to EBIT

19.62

EV to EBITDA

12.16

EV to Capital Employed

0.76

EV to Sales

0.79

PEG Ratio

1.23

Dividend Yield

0.79%

ROCE (Latest)

2.68%

ROE (Latest)

4.04%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Sideways

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

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

19What is working for the Company

DPR(Y)

Highest at 17.76%

NET SALES(Q)

At Rs 492.08 cr has Grown at 27.68%

PBDIT(Q)

Highest at Rs 43.91 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 8.92%

PBT LESS OI(Q)

Highest at Rs 31.55 cr.

PAT(Q)

Highest at Rs 31.91 cr.

EPS(Q)

Highest at Rs 5.30

-4What is not working for the Company

DPS(Y)

Lowest at Rs 2.00

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 146.07 cr

DEBTORS TURNOVER RATIO(HY)

Lowest at 9.00 times

Loading Valuation Snapshot...

Here's what is working for Seshasayee Paper

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 31.55 cr has Grown at 300.38%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 31.91 cr has Grown at 106.8%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly

At Rs 492.08 cr has Grown at 27.68%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 43.91 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 8.92%

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 31.55 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 31.91 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 5.30

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Dividend Payout Ratio (DPR) - Annually

Highest at 17.76%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Seshasayee Paper

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

Dividend per Share (DPS) - Annually

Lowest at Rs 2.00

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (Rs)