West Coast Paper Mills Ltd (WSTCSTPAPR) 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

T N Newsprint

Cheviot Company

West Coast Paper

Seshasayee Paper

JK Paper

Pudumjee Paper

Kuantum Papers

Andhra Paper

A B Real Estate

KS Smart Technlo

Why is West Coast Paper Mills Ltd ?

High Management Efficiency with a high ROE of 18.67%

Company has a Debt to Equity ratio (avg) of 0.06 times

Poor long term growth as Net Sales has grown by an annual rate of 14.80% over the last 5 years

The company has declared Negative results for the last 9 consecutive quarters

PBT LESS OI(Q) At Rs 2.67 cr has Fallen at -84.5% (vs previous 4Q average)
PAT(Q) At Rs 26.86 cr has Fallen at -40.3% (vs previous 4Q average)
ROCE(HY) Lowest at 7.34%

With ROE of 5.1, it has a Fair valuation with a 1 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 23.96%, its profits have fallen by -63.1%

Majority shareholders : Promoters

Market Beating Performance

The stock has generated a return of 23.96% in the last 1 year, much higher than market (BSE500) returns of 4.81%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to West Coast 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 West Coast Paper for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

West Coast Paper

23.96%

0.68

34.98%

Sensex

-3.33%

-0.25

13.43%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.80%

EBIT Growth (5y)

21.69%

EBIT to Interest (avg)

18.11

Debt to EBITDA (avg)

0.86

Net Debt to Equity (avg)

-0.25

Sales to Capital Employed (avg)

1.35

Tax Ratio

29.09%

Dividend Payout Ratio

7.64%

Pledged Shares

Institutional Holding

15.91%

ROCE (avg)

34.11%

ROE (avg)

18.67%

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

1.00

EV to EBIT

27.44

EV to EBITDA

7.87

EV to Capital Employed

1.00

EV to Sales

0.65

PEG Ratio

Dividend Yield

0.94%

ROCE (Latest)

4.24%

ROE (Latest)

5.09%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

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

2What is working for the Company

NET SALES(Q)

Highest at Rs 1,049.78 cr

-19What is not working for the Company

PBT LESS OI(Q)

At Rs 2.67 cr has Fallen at -84.5% (vs previous 4Q average

PAT(Q)

At Rs 26.86 cr has Fallen at -40.3% (vs previous 4Q average

ROCE(HY)

Lowest at 7.34%

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 21.09 cr

DEBT-EQUITY RATIO(HY)

Highest at 0.13 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 10.47 times

NON-OPERATING INCOME(Q)

is 94.36 % of Profit Before Tax (PBT

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Here's what is working for West Coast Paper

Net Sales - Quarterly

Highest at Rs 1,049.78 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Here's what is not working for West Coast Paper

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 2.67 cr has Fallen at -84.5% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 17.19 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 26.86 cr has Fallen at -40.3% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 45.02 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Non Operating Income - Quarterly

is 94.36 % 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 21.09 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio - Half Yearly

Highest at 0.13 times

in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio- Half Yearly

Lowest at 10.47 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio