BSE:502420

Stock Analysis Report

Orient Paper & Industries

Executive Summary

Orient Paper & Industries Limited manufactures and sells pulp and paper products in India.

Snowflake

Fundamentals

Very undervalued with adequate balance sheet.

Risks

  • Orient Paper & Industries has significant price volatility in the past 3 months.
  • Orient Paper & Industries is covered by less than 3 analysts.

Share Price & News

How has Orient Paper & Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-12.0%

BSE:502420

2.9%

IN Forestry

-0.7%

IN Market


1 Year Return

-41.5%

BSE:502420

-35.9%

IN Forestry

-12.1%

IN Market

502420 underperformed the Forestry industry which returned -35.9% over the past year.

502420 underperformed the Market in India which returned -12.1% over the past year.


Share holder returns

502420IndustryMarket
7 Day-12.0%2.9%-0.7%
30 Day-16.4%-3.0%-4.6%
90 Day-25.7%-8.1%-4.3%
1 Year-39.4%-41.5%-35.1%-35.9%-10.3%-12.1%
3 Year-57.7%-60.8%-2.8%-5.3%18.9%12.8%
5 Year-12.8%-19.8%80.8%73.2%37.6%24.7%

Price Volatility Vs. Market

How volatile is Orient Paper & Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Orient Paper & Industries undervalued based on future cash flows and its price relative to the stock market?

49%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Orient Paper & Industries's share price is below the future cash flow value, and at a moderate discount (> 20%).

Orient Paper & Industries's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Orient Paper & Industries is good value based on earnings compared to the IN Forestry industry average.

Orient Paper & Industries is good value based on earnings compared to the India market.


Price Based on Expected Growth

Orient Paper & Industries is good value based on expected growth next year.


Price Based on Value of Assets

Orient Paper & Industries is good value based on assets compared to the IN Forestry industry average.


Next Steps

Future Growth

How is Orient Paper & Industries expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

22.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Orient Paper & Industries's revenue is expected to grow by 6% yearly, however this is not considered high growth (20% yearly).

Orient Paper & Industries's earnings are expected to grow significantly at over 20% yearly.

Orient Paper & Industries's revenue growth is positive but not above the India market average.

Orient Paper & Industries's earnings growth is expected to exceed the India market average.

Orient Paper & Industries's earnings growth is expected to exceed the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Orient Paper & Industries will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Orient Paper & Industries performed over the past 5 years?

57.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Orient Paper & Industries has delivered over 20% year on year earnings growth in the past 5 years.

Orient Paper & Industries's 1-year earnings growth is less than its 5-year average (52.4% vs 57.5%)

Orient Paper & Industries's earnings growth has exceeded the IN Forestry industry average in the past year (52.4% vs 43.2%).


Return on Equity

Orient Paper & Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Orient Paper & Industries used its assets less efficiently than the IN Forestry industry average last year based on Return on Assets.


Return on Capital Employed

Orient Paper & Industries's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Orient Paper & Industries's financial position?


Financial Position Analysis

Orient Paper & Industries's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Orient Paper & Industries's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Orient Paper & Industries's level of debt (1.5%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (75.6% vs 1.5% today).

Debt is well covered by operating cash flow (464.2%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 30.6x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 6.9x debt.


Next Steps

Dividend

What is Orient Paper & Industries's current dividend yield, its reliability and sustainability?

4.86%

Current Dividend Yield


Dividend Yield and Payments Analysis

Orient Paper & Industries's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.63%).

Orient Paper & Industries's dividend is above the markets top 25% of dividend payers in India (2.52%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.9x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Orient Paper & Industries's salary, the management and board of directors tenure and is there insider trading?

10.6yrs

Average management tenure


CEO

Manohar Pachisia (74yo)

28.3yrs

Tenure

₹50,581,277

Compensation

Mr. Manohar Lal Pachisia, B.Com has been the Managing Director and Chief executive officer at Orient Paper & Industries Ltd. since April 1,1991. Mr. Pachisia serves as the President of Hindustan Motors Lt ...


CEO Compensation Analysis

Manohar's remuneration is higher than average for companies of similar size in India.

Manohar's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

10.6yrs

Average Tenure

54yo

Average Age

The average tenure for the Orient Paper & Industries management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

5.9yrs

Average Tenure

64yo

Average Age

The tenure for the Orient Paper & Industries board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Manohar Pachisia (74yo)

    CEO, MD & Executive Director

    • Tenure: 28.3yrs
    • Compensation: 50.58m
  • A. Singh (53yo)

    VP & Head of Fans Manufacturing - Electric Division

  • P. Dhawan (51yo)

    SBU Head of Lighting - Electric Division

    • Compensation: 3.82m
  • Ram Dutta

    Compliance Officer & Company Secretary

    • Tenure: 6.3yrs
  • Ajay Gupta (54yo)

    Chief Executive Officer of Amlai Paper Mills

  • Gautam Mullick (62yo)

    Senior Vice President of Paper Marketing

  • P. Sonthalia (61yo)

    CFO & President of Finance

  • S. Tandon (49yo)

    Senior VP & BU Head of Fans - Electric Division

  • B. Gilra (73yo)

    President of Caustic Soda

  • G. Shingote (50yo)

    Head of Strategy and Planning

    • Tenure: 10.6yrs
    • Compensation: 2.46m

Board Members

  • Narendra Sisodia (74yo)

    Independent Non Executive Director

    • Tenure: 6.8yrs
    • Compensation: 2.50m
  • Chandra Birla (64yo)

    Chairman

    • Compensation: 4.50m
  • Srinivasan Vishvanathan (64yo)

    Independent Director

    • Tenure: 0.4yrs
    • Compensation: 123.97k
  • Manohar Pachisia (74yo)

    CEO, MD & Executive Director

    • Tenure: 21.9yrs
    • Compensation: 50.58m
  • Gauri Rasgotra (51yo)

    Non-Executive Independent Director

    • Tenure: 4.9yrs
    • Compensation: 2.20m
  • Ashwin Bishnoi (38yo)

    Independent Director

Company Information

Orient Paper & Industries Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Orient Paper & Industries Limited
  • Ticker: 502420
  • Exchange: BSE
  • Founded: 1939
  • Industry: paper products
  • Sector: materials
  • Market Cap: ₹4.806b
  • Shares outstanding: 212.19m
  • Website: Click here

Number of Employees


Location

  • Orient Paper & Industries Limited
  • Birla Building
  • 13th Floor
  • Kolkata
  • West Bengal
  • 700001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
502420BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 1995
ORIENTPPRNSEI (National Stock Exchange of India)YesEquity SharesININRFeb 1995

Biography

Orient Paper & Industries Limited manufactures and sells pulp and paper products in India. The company provides chemicals; and writing, printing, industrial, specialty, and soft tissue papers. It also expo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 12:43
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.