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
Positive results in Dec 25
- PAT(9M) Higher at Rs 7.46 Cr
4
With ROCE of 1.8, it has a Very Attractive valuation with a 0.7 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 0.08%, its profits have risen by 102.6% ; the PEG ratio of the company is 0.3
5
High Institutional Holdings at 20.4%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
How much should you hold?
- Overall Portfolio exposure to T N Newsprint 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 T N Newsprint for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
T N Newsprint
0.62%
0.02
34.25%
Sensex
-2.38%
-0.19
12.70%
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
30
Industry P/E
18
Price to Book Value
0.43
EV to EBIT
20.88
EV to EBITDA
6.20
EV to Capital Employed
0.70
EV to Sales
0.58
PEG Ratio
0.30
Dividend Yield
2.31%
ROCE (Latest)
1.82%
ROE (Latest)
1.43%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Mildly Bullish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bearish
No Trend
Technical Movement
14What is working for the Company
PAT(9M)
Higher at Rs 7.46 Cr
-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






