BSE:502450

Stock Analysis Report

Seshasayee Paper and Boards

Executive Summary

Seshasayee Paper and Boards Limited operates an integrated pulp, paper, and paper board mill in Tamilnadu, India.

Snowflake

Fundamentals

Outstanding track record with flawless balance sheet.

Risks

  • Seshasayee Paper and Boards is covered by less than 3 analysts.

Share Price & News

How has Seshasayee Paper and Boards's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.6%

BSE:502450

2.9%

IN Forestry

-0.7%

IN Market


1 Year Return

-20.1%

BSE:502450

-35.9%

IN Forestry

-12.1%

IN Market

502450 outperformed the Forestry industry which returned -35.9% over the past year.

502450 underperformed the Market in India which returned -12.1% over the past year.


Share holder returns

502450IndustryMarket
7 Day2.6%2.9%-0.7%
30 Day-3.8%-3.0%-4.6%
90 Day-3.9%-8.1%-4.3%
1 Year-18.4%-20.1%-35.1%-35.9%-10.3%-12.1%
3 Year125.3%114.2%-2.8%-5.3%18.9%12.8%
5 Year341.8%305.1%80.8%73.2%37.6%24.7%

Price Volatility Vs. Market

How volatile is Seshasayee Paper and Boards's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Seshasayee Paper and Boards undervalued based on future cash flows and its price relative to the stock market?

45%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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

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


Price Based on Earnings

Seshasayee Paper and Boards is good value based on earnings compared to the IN Forestry industry average.

Seshasayee Paper and Boards is good value based on earnings compared to the India market.


Price Based on Expected Growth

Seshasayee Paper and Boards is good value based on expected growth next year.


Price Based on Value of Assets

Seshasayee Paper and Boards is overvalued based on assets compared to the IN Forestry industry average.


Next Steps

Future Growth

How is Seshasayee Paper and Boards expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

10.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Seshasayee Paper and Boards's revenue is expected to grow by 14.6% yearly, however this is not considered high growth (20% yearly).

Seshasayee Paper and Boards's earnings are expected to grow by 10.3% yearly, however this is not considered high growth (20% yearly).

Seshasayee Paper and Boards's revenue growth is expected to exceed the India market average.

Seshasayee Paper and Boards's earnings growth is positive but not above the India market average.

Seshasayee Paper and Boards'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 Seshasayee Paper and Boards will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Seshasayee Paper and Boards performed over the past 5 years?

38.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Seshasayee Paper and Boards has delivered over 20% year on year earnings growth in the past 5 years.

Seshasayee Paper and Boards's 1-year earnings growth exceeds its 5-year average (45.7% vs 38%)

Seshasayee Paper and Boards's earnings growth has exceeded the IN Forestry industry average in the past year (45.7% vs 43.2%).


Return on Equity

Seshasayee Paper and Boards has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Seshasayee Paper and Boards used its assets more efficiently than the IN Forestry industry average last year based on Return on Assets.


Return on Capital Employed

Seshasayee Paper and Boards has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Seshasayee Paper and Boards's financial position?


Financial Position Analysis

Seshasayee Paper and Boards is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Seshasayee Paper and Boards's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Seshasayee Paper and Boards's level of debt (10.9%) 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 (93.3% vs 10.9% today).

Debt is well covered by operating cash flow (281.4%, greater than 20% of total debt).

Seshasayee Paper and Boards earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 6x debt.


Next Steps

Dividend

What is Seshasayee Paper and Boards's current dividend yield, its reliability and sustainability?

2.24%

Current Dividend Yield


Dividend Yield and Payments Analysis

Seshasayee Paper and Boards's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.63%).

Seshasayee Paper and Boards's dividend is below 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 increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are thoroughly covered by earnings (8.1x 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 Seshasayee Paper and Boards's salary, the management and board of directors tenure and is there insider trading?

1.1yrs

Average management tenure


CEO

Kasi Subramanian Kallidaikurichi (68yo)

2.6yrs

Tenure

₹18,931,360

Compensation

Mr. K. S. Kasi Viswanathan, B.Tech., MMS serves as the Managing Director of Seshasayee Paper and Boards Ltd. Mr. Viswanathan served as the Deputy Managing Director of Seshasayee Paper and Boards Ltd., sin ...


CEO Compensation Analysis

Kasi's remuneration is about average for companies of similar size in India.

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


Management Age and Tenure

1.1yrs

Average Tenure

72yo

Average Age

The average tenure for the Seshasayee Paper and Boards management team is less than 2 years, this suggests a new team.


Board Age and Tenure

7.5yrs

Average Tenure

70yo

Average Age

The tenure for the Seshasayee Paper and Boards board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Kasi Subramanian Kallidaikurichi (68yo)

    MD & Executive Director

    • Tenure: 2.6yrs
    • Compensation: 18.93m
  • Natarajan Gopalaratnam (72yo)

    Chairman

    • Compensation: 19.09m
  • P. Vasist

    Senior Vice President of Marketing

  • C. Balasubramanian

    Senior Vice President of Business Development

  • A. Srinivasan

    Chief of Projects

  • A. Mehrotra

    President of Technical

  • A. Alagarsamy

    Head of HR

    • Tenure: 2.0yrs
  • Venkatataraman Pichai (72yo)

    CFO, Deputy MD

    • Compensation: 18.93m
  • S Srinivas

    Head of Finance

    • Tenure: 0.2yrs
  • T Ananthakrishnan

    Head of Materials

    • Tenure: 0.2yrs

Board Members

  • Kasi Subramanian Kallidaikurichi (68yo)

    MD & Executive Director

    • Tenure: 14.6yrs
    • Compensation: 18.93m
  • Venkatesan Sridar (72yo)

    Independent Non-Executive Director

    • Tenure: 10.2yrs
    • Compensation: 1.20m
  • Natarajan Gopalaratnam (72yo)

    Chairman

    • Tenure: 18.1yrs
    • Compensation: 19.09m
  • Chinny Nanditha Krishna (68yo)

    Independent Non-Executive Director

    • Tenure: 4.9yrs
    • Compensation: 600.00k
  • Lakshminarasimha Somayaji

    Independent Non-Executive Director

    • Tenure: 4.9yrs
    • Compensation: 750.00k
  • Subbaraman Narayan (76yo)

    Independent Non-Executive Director

    • Tenure: 12.6yrs
    • Compensation: 750.00k
  • Mohan Chunkath (63yo)

    Independent Director

    • Tenure: 0.3yrs
    • Compensation: 310.00k
  • Manickavasagam Aarthi

    Nominee Director

    • Tenure: 1.5yrs
    • Compensation: 525.00k
  • Venkatataraman Pichai (72yo)

    CFO, Deputy MD

    • Tenure: 14.6yrs
    • Compensation: 18.93m
  • Deepak Srivastava (54yo)

    Additional Director

    • Tenure: 0.1yrs

Company Information

Seshasayee Paper and Boards Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Seshasayee Paper and Boards Limited
  • Ticker: 502450
  • Exchange: BSE
  • Founded: 1960
  • Industry: paper products
  • Sector: materials
  • Market Cap: ₹11.270b
  • Shares outstanding: 12.61m
  • Website: Click here

Number of Employees


Location

  • Seshasayee Paper and Boards Limited
  • Pallipalayam
  • Cauvery RS PO
  • Erode
  • Tamil Nadu
  • 638007
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
502450BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 1995
SESHAPAPERNSEI (National Stock Exchange of India)YesEquity SharesININRMar 1995

Biography

Seshasayee Paper and Boards Limited operates an integrated pulp, paper, and paper board mill in Tamilnadu, India. The company offers printing and writing papers, packing and wrapping papers, and specialty  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 12:37
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.