BSE:516096

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Sangal Papers Limited manufactures and sells paper and paper products in India.


Snowflake Analysis

Undervalued with adequate balance sheet.

Share Price & News

How has Sangal Papers's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 516096's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.6%

516096

-0.3%

IN Forestry

3.5%

IN Market


1 Year Return

-20.0%

516096

-41.9%

IN Forestry

-5.5%

IN Market

Return vs Industry: 516096 exceeded the Indian Forestry industry which returned -44.7% over the past year.

Return vs Market: 516096 underperformed the Indian Market which returned -8.7% over the past year.


Shareholder returns

516096IndustryMarket
7 Day-6.6%-0.3%3.5%
30 Day38.1%6.7%6.4%
90 Day51.7%20.6%22.9%
1 Year-20.0%-20.0%-25.9%-41.9%-3.7%-5.5%
3 Year-16.0%-16.0%-39.9%-54.2%1.6%-3.1%
5 Year40.7%40.7%7.3%-22.0%27.4%17.7%

Price Volatility Vs. Market

How volatile is Sangal Papers's share price compared to the market and industry in the last 5 years?


Simply Wall St News

2 years ago | Simply Wall St

April Best Undervalued Stocks

2 years ago | Simply Wall St

April Best Undervalued Stocks

2 years ago | Simply Wall St

April Best Undervalued Stocks

Valuation

Is Sangal Papers undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 516096 (₹74.55) is trading below our estimate of fair value (₹175.51)

Significantly Below Fair Value: 516096 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 516096 is good value based on its PE Ratio (5.7x) compared to the Forestry industry average (7.3x).

PE vs Market: 516096 is good value based on its PE Ratio (5.7x) compared to the Indian market (12.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 516096's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 516096 is good value based on its PB Ratio (0.3x) compared to the IN Forestry industry average (0.7x).


Next Steps

Future Growth

How is Sangal Papers forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.7%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Sangal Papers has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Sangal Papers performed over the past 5 years?

25.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 516096 has high quality earnings.

Growing Profit Margin: 516096's current net profit margins (1.3%) are lower than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: 516096's earnings have grown significantly by 25.4% per year over the past 5 years.

Accelerating Growth: 516096's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 516096 had negative earnings growth (-75.2%) over the past year, making it difficult to compare to the Forestry industry average (-9%).


Return on Equity

High ROE: 516096's Return on Equity (5.5%) is considered low.


Next Steps

Financial Health

How is Sangal Papers's financial position?


Financial Position Analysis

Short Term Liabilities: 516096's short term assets (₹427.8M) exceed its short term liabilities (₹310.6M).

Long Term Liabilities: 516096's short term assets (₹427.8M) exceed its long term liabilities (₹101.1M).


Debt to Equity History and Analysis

Debt Level: 516096's debt to equity ratio (66.6%) is considered high.

Reducing Debt: 516096's debt to equity ratio has reduced from 121.1% to 66.6% over the past 5 years.

Debt Coverage: 516096's debt is well covered by operating cash flow (39.6%).

Interest Coverage: 516096's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Sangal Papers's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 516096's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 516096's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 516096's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 516096's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 516096's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.7yrs

Average management tenure


CEO

Himanshu Sangal (65yo)

9.25yrs

Tenure

Mr. Himanshu Sangal has been Managing Director at Sangal Papers Ltd since April 01, 2011 and served as its Chairman until May 30, 2019. He also has been Executive Director at Sangal Papers Ltd since Novemb ...


CEO Compensation Analysis

Compensation vs Market: Himanshu's total compensation ($USD0.00) is below average for companies of similar size in the Indian market ($USD49.50K).

Compensation vs Earnings: Himanshu's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Himanshu Sangal
MD & Executive Director9.25yrsno data8.78% 8.9m
Amit Sangal
CFO, Director of Finance & Executive Director23.83yrsno data9.81% 10.0m
Vinayak Sangal
Non-Executive Director & President of Operations6.33yrsno data1.1% 1.1m
Tanmay Sangal
Non-Executive Director & President of Marketing9.25yrsno data3.46% 3.5m
Ishita Niyogi
President of Export2.67yrsno data0.53% 535.4k
Arpit Jain
Company Secretary & Compliance Officer0.92yrno datano data
Praveen Agarwal
Vice President of Plantno datano datano data

2.7yrs

Average Tenure

45yo

Average Age

Experienced Management: 516096's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Himanshu Sangal
MD & Executive Director9.25yrsno data8.78% 8.9m
Amit Sangal
CFO, Director of Finance & Executive Director23.83yrsno data9.81% 10.0m
Vinayak Sangal
Non-Executive Director & President of Operations6.33yrsno data1.1% 1.1m
Tanmay Sangal
Non-Executive Director & President of Marketing9.25yrsno data3.46% 3.5m
Prem Sethi
Independent Chairman1.17yrsno datano data
Geeta Gupta
Independent & Non-Executive Director5.33yrsno datano data

7.8yrs

Average Tenure

56.5yo

Average Age

Experienced Board: 516096's board of directors are considered experienced (7.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Sangal Papers Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sangal Papers Limited
  • Ticker: 516096
  • Exchange: BSE
  • Founded: 1980
  • Industry: Paper Products
  • Sector: Materials
  • Market Cap: ₹101.966m
  • Shares outstanding: 1.31m
  • Website: https://sangalpapers.com

Number of Employees


Location

  • Sangal Papers Limited
  • Apsara Cinema Building
  • Ghanta Ghar
  • Meerut
  • Uttar Pradesh
  • 250002
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
516096BSE (Mumbai Stock Exchange)YesEquity SharesININROct 2007

Biography

Sangal Papers Limited manufactures and sells paper and paper products in India. It offers envelope, ribbed, packing and lamination, scrapbook/craft, writing and printing, color, stationery, and newsprint papers. The company also exports its products to Sri Lanka, Singapore, Nepal, Iran, and internationally. Sangal Papers Limited was incorporated in 1980 and is based in Meerut, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/06 12:47
End of Day Share Price2020/07/06 00:00
Earnings2019/12/31
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.