Why is Tamil Nadu Newsprint & Papers Ltd ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.91 times
- Poor long term growth as Net Sales has grown by an annual rate of 13.10% and Operating profit at 19.91% over the last 5 years
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.91 times
- The company has been able to generate a Return on Equity (avg) of 6.78% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of 13.10% and Operating profit at 19.91% over the last 5 years
3
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -23.07% 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 T N Newsprint for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
T N Newsprint
-22.31%
-0.64
35.14%
Sensex
4.51%
0.35
11.36%
Quality key factors
Factor
Value
Sales Growth (5y)
13.10%
EBIT Growth (5y)
19.91%
EBIT to Interest (avg)
1.67
Debt to EBITDA (avg)
4.82
Net Debt to Equity (avg)
0.90
Sales to Capital Employed (avg)
1.09
Tax Ratio
32.36%
Dividend Payout Ratio
558.76%
Pledged Shares
0
Institutional Holding
20.40%
ROCE (avg)
8.29%
ROE (avg)
6.78%
Valuation Key Factors 
Factor
Value
P/E Ratio
31
Industry P/E
17
Price to Book Value
0.44
EV to EBIT
20.93
EV to EBITDA
6.22
EV to Capital Employed
0.70
EV to Sales
0.59
PEG Ratio
0.30
Dividend Yield
2.30%
ROCE (Latest)
1.82%
ROE (Latest)
1.43%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Movement
14What is working for the Company
PAT(Q)
At Rs 6.77 cr has Grown at 115.8%
-4What is not working for the Company
ROCE(HY)
Lowest at 4.37%
DEBTORS TURNOVER RATIO(HY)
Lowest at 8.39 times
NON-OPERATING INCOME(Q)
is 211.70 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for T N Newsprint
Profit After Tax (PAT) - Quarterly
At Rs 6.77 cr has Grown at 115.8%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Here's what is not working for T N Newsprint
Non Operating Income - Quarterly
is 211.70 % 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
Debtors Turnover Ratio- Half Yearly
Lowest at 8.39 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio






