Star Paper Mills Ltd. (STARPAPER) 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

S I Paper Mills

Sh. Ajit Pulp

Star Paper Mills

Ruchira Papers

Genus Paper & Bo

Pakka

Indian Wood Prod

Shreyans Inds.

Orient Paper

Exim Routes

Nikita Greentech

Why is Star Paper Mills Ltd. ?

Poor Management Efficiency with a low ROE of 8.03%

The company has been able to generate a Return on Equity (avg) of 8.03% signifying low profitability per unit of shareholders funds

The company is Net-Debt Free

Poor long term growth as Operating profit has grown by an annual rate -6.32% of over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

PBT LESS OI(Q) At Rs 2.08 cr has Fallen at -73.02%
PAT(9M) At Rs 19.95 cr has Grown at -26.76%
ROCE(HY) Lowest at 4.93%

With ROE of 4.6, it has a Attractive valuation with a 0.3 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 -10.13%, its profits have fallen by -20.4%

47.21% of Promoter Shares are Pledged

In falling markets, high promoter pledged shares puts additional downward pressure on the stock prices

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 4.11% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -10.13% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Star Paper Mills 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 Star Paper Mills for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Star Paper Mills

-9.46%

-0.37

25.37%

Sensex

-2.63%

-0.19

13.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.93%

EBIT Growth (5y)

-6.32%

EBIT to Interest (avg)

38.93

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.34

Sales to Capital Employed (avg)

0.63

Tax Ratio

4.32%

Dividend Payout Ratio

13.28%

Pledged Shares

47.21%

Institutional Holding

1.65%

ROCE (avg)

8.61%

ROE (avg)

8.03%

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

0.33

EV to EBIT

-0.26

EV to EBITDA

-0.16

EV to Capital Employed

-0.01

EV to Sales

-0.01

PEG Ratio

Dividend Yield

2.31%

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

4.63%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Sideways

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

No Trend

OBV

Mildly 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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-15What is not working for the Company

PBT LESS OI(Q)

At Rs 2.08 cr has Fallen at -73.02%

PAT(9M)

At Rs 19.95 cr has Grown at -26.76%

ROCE(HY)

Lowest at 4.93%

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 12.08 cr

EPS(Q)

Lowest at Rs -0.83

Loading Valuation Snapshot...

Here's what is not working for Star Paper Mills

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 2.08 cr has Fallen at -73.02%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs -1.29 cr has Fallen at -125.7%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs -0.83

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 12.08 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents