Why is Star Paper Mills Ltd. ?
1
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
2
Poor long term growth as Operating profit has grown by an annual rate -19.75% of over the last 5 years
3
The company has declared Negative results for the last 5 consecutive quarters
- PAT(Latest six months) At Rs 9.72 cr has Grown at -45.45%
- PBT LESS OI(Q) At Rs 0.83 cr has Fallen at -81.35%
- ROCE(HY) Lowest at 4.93%
4
47.21% of Promoter Shares are Pledged
- In falling markets, high promoter pledged shares puts additional downward pressure on the stock prices
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -7.14% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
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 Star Paper Mills for you?
Medium Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Star Paper Mills
-8.87%
-0.32
27.84%
Sensex
-9.38%
-0.68
13.51%
Quality key factors
Factor
Value
Sales Growth (5y)
10.11%
EBIT Growth (5y)
-19.75%
EBIT to Interest (avg)
38.46
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
5.30%
Dividend Payout Ratio
13.28%
Pledged Shares
47.21%
Institutional Holding
1.65%
ROCE (avg)
8.61%
ROE (avg)
8.03%
Valuation Key Factors 
Factor
Value
P/E Ratio
8
Industry P/E
16
Price to Book Value
0.34
EV to EBIT
0.59
EV to EBITDA
0.31
EV to Capital Employed
0.01
EV to Sales
0.01
PEG Ratio
NA
Dividend Yield
1.60%
ROCE (Latest)
2.46%
ROE (Latest)
4.37%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Sideways
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
No Trend
Technical Movement
0What is working for the Company
NO KEY POSITIVE TRIGGERS
-14What is not working for the Company
PAT(Latest six months)
At Rs 9.72 cr has Grown at -45.45%
PBT LESS OI(Q)
At Rs 0.83 cr has Fallen at -81.35%
ROCE(HY)
Lowest at 4.93%
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 12.08 cr
NON-OPERATING INCOME(Q)
is 94.38 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is not working for Star Paper Mills
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 0.83 cr has Fallen at -81.35%
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 11.01 cr has Fallen at -14.1%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Non Operating Income - Quarterly
is 94.38 % 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 12.08 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
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