Balkrishna Paper Mills Ltd. (BALKRISHNA) AI Stock Analysis

• Market Cap: ₹549.34M
• Dividend Yield: N/A
• Average Volume (3M): 4.09K
• Price to Earnings (P/E): 33.7
• Beta (1Y): 0.57
• Revenue Growth: 19.95%
• EPS Growth: N/A
• Country: US
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Packaging & Containers
• EPS (TTM): -0.55
• Shares Outstanding: 32,219,532
• 10 Day Avg. Volume: 5,469
• 30 Day Avg. Volume: 4,093
• PEG Ratio: -0.06
• Price to Book (P/B): -0.32
• Price to Sales (P/S): 23.11
• P/FCF Ratio: -12.97
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: ₹17.00 ▼(-5.61% Downside)

Balkrishna Paper Mills Ltd. faces significant financial challenges, with negative profitability and high leverage being the most impactful factors. Technical indicators also suggest bearish momentum, while a high P/E ratio raises concerns about overvaluation. Immediate strategic actions are needed to address these issues.

Positive Factors

B2B manufacturing business model

A pure B2B manufacturing model selling paper grades to printers, publishers and packaging converters supports durable, relationship-driven demand and repeat orders. Over months this can produce a stable revenue base if capacity utilization and input-cost management are addressed.

Exposure to packaging markets

Product exposure to packaging and container end-markets provides structural demand resilience versus niche print-only peers. Packaging demand tends to be driven by broad economic activity and supply chains, offering more stable long-term volumes and potential scale advantages for manufacturers.

Lower systematic volatility (Beta)

A comparatively low beta indicates the company’s returns have historically been less sensitive to market swings. For creditors and long-term investors this can translate into a steadier risk profile and potentially easier access to patient capital compared with highly cyclical peers.

Negative Factors

Negative profitability and margins

Sustained negative operating and net margins undermine reinvestment capacity and competitiveness. Over months this erodes retained earnings, constrains pricing flexibility, and limits funds for maintenance or efficiency projects, increasing long-term operational risk.

High leverage and negative equity

Negative shareholders' equity and elevated debt create structural solvency and refinancing risk. Persistent leverage raises interest burden and reduces financial flexibility, making it harder to fund working capital or capex without dilutive or costly external financing.

Consistently negative operating cash flow

Ongoing negative operating and free cash flow limits the company’s ability to self-fund operations, service debt, or invest in improvements. Over multiple months this forces reliance on external capital, heightening default and dilution risk and weakening long-term viability.

Balkrishna Paper Mills Ltd. Business Overview & Revenue Model

Company Description

Balkrishna Paper Mills Limited engages in the manufacture and sale of paper and paper boards in India. It offers eco, chromo white back, eco-white, eco kraft back, and duplex coated boards. The company's coated duplex boards are primarily used for packaging by various industries, such as pharmaceuticals, toiletries, cosmetics, health care products, readymade garments, instant food products, match boxes, and incense sticks, as well as FMCG segments. It also exports its products. The company was formerly known as Nirvikara Paper Mills Limited and changed its name to Balkrishna Paper Mills Limited in August 2016. Balkrishna Paper Mills Limited was founded in 1975 and is based in Mumbai, India.

How the Company Makes Money

Balkrishna Paper Mills Ltd. generates revenue through the manufacturing and sale of its paper products. The company's primary revenue streams include the sale of writing and printing papers, specialty papers, and packaging solutions to both domestic and international customers. BALKRISHNA's strategic partnerships with distributors and retailers enhance its market reach and customer base. Additionally, the company invests in research and development to innovate its product offerings, which not only attracts new customers but also allows for premium pricing on specialized products. The demand for sustainable and eco-friendly paper products further amplifies BALKRISHNA's earnings as more businesses and consumers seek environmentally responsible options.

Balkrishna Paper Mills Ltd. Financial Statement Overview

Summary

Balkrishna Paper Mills Ltd. is facing substantial financial difficulties. The income statement highlights declining revenues and negative profitability, while the balance sheet shows significant leverage and negative equity, indicating financial instability. Cash flow challenges further exacerbate the company's situation, with negative cash generation from operations.

Income Statement

The company's income statement reflects significant challenges with negative EBIT and EBITDA margins across the years. The gross profit margin has significantly declined over the years, and the net profit margin is negative, indicating a lack of profitability. The revenue growth rate is negative, which indicates declining sales.

Balance Sheet

The balance sheet indicates high financial risk with a negative stockholders' equity, resulting in a negative equity ratio. The debt-to-equity ratio is unreliable due to negative equity, but high total debt suggests significant leverage. The return on equity is also negative, reflecting ongoing profitability challenges.

Cash Flow

Cash flows reveal severe challenges with consistently negative operating and free cash flow, indicating an inability to generate cash from core operations. The free cash flow growth rate is negative, and ratios involving net income are not meaningful due to consistent losses.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	30.62M	23.24M	34.30M	1.04B	2.38B	1.24B
Gross Profit	5.96M	1.55M	383.00K	-171.21M	764.12M	407.14M
EBITDA	-7.22M	-4.40M	-773.65M	-356.00M	74.78M	-99.13M
Net Income	-85.67M	81.86M	-711.39M	-518.77M	-46.88M	-258.48M
Balance Sheet
Total Assets	0.00	189.15M	453.22M	1.35B	1.87B	2.15B
Cash, Cash Equivalents and Short-Term Investments	9.83M	9.87M	4.25M	4.38M	1.63M	313.94M
Total Debt	0.00	1.60B	2.15B	2.29B	2.05B	1.09B
Total Liabilities	1.69B	1.88B	2.67B	2.85B	2.86B	3.08B
Stockholders Equity	-1.69B	-1.69B	-2.22B	-1.50B	-985.13M	-937.81M
Cash Flow
Free Cash Flow	0.00	-41.40M	-84.03M	-197.02M	-552.01M	232.96M
Operating Cash Flow	0.00	-41.40M	-83.98M	-195.57M	-545.35M	235.59M
Investing Cash Flow	0.00	238.86M	119.13M	21.39M	185.28M	-2.10M
Financing Cash Flow	0.00	-193.49M	-35.27M	177.94M	47.76M	78.34M

Balkrishna Paper Mills Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:BALKRISHNA, the sentiment is Negative. The current price of 18.01 is below the 20-day moving average (MA) of 18.05, below the 50-day MA of 19.64, and below the 200-day MA of 20.74, indicating a bearish trend. The MACD of -0.69 indicates Positive momentum. The RSI at 33.95 is Neutral, neither overbought nor oversold. The STOCH value of 14.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:BALKRISHNA.

Balkrishna Paper Mills Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SAH	63 Neutral	₹1.89B	123.52	―	―	7.47%	104.95%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
EMMBI	60 Neutral	₹1.80B	23.16	―	0.29%	11.97%	-29.32%
RPPL	60 Neutral	₹1.18B	10.90	―	―	10.14%	73.18%
HITECHCORP	56 Neutral	₹2.66B	24.39	―	0.58%	7.99%	-29.35%
PEARLPOLY	44 Neutral	₹346.46M	-6.58	―	―	―	―
BALKRISHNA	42 Neutral	₹549.34M	33.66	―	―	19.95%	―

Balkrishna Paper Mills Ltd. Corporate Events

Balkrishna Paper Mills Confirms SEBI Demat Compliance for December Quarter

Balkrishna Paper Mills Limited has reported compliance with Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended December 31, 2025, confirming that all securities received from depository participants for dematerialisation were duly verified and either accepted or rejected and communicated to the depositories. The company also confirmed that, within the prescribed timelines, physical security certificates received for dematerialisation were mutilated and cancelled, with the depositories’ names substituted as registered owners in the records, underscoring adherence to regulatory norms and reinforcing governance standards for its shareholders.