Emami Paper Mills Limited (EMAMIPAP) AI Stock Analysis

• Market Cap: ₹5.08B
• Dividend Yield: 1.84%
• Average Volume (3M): 8.09K
• Price to Earnings (P/E): 27.5
• Beta (1Y): 1.01
• Revenue Growth: -6.94%
• EPS Growth: -78.40%
• Country: IN
• Employees: 1,090
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 1.09
• Shares Outstanding: 60,499,046
• 10 Day Avg. Volume: 1,039
• 30 Day Avg. Volume: 8,090
• PEG Ratio: -0.28
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.28
• P/FCF Ratio: 23.01
• 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: 57 Neutral
• Price Target: ₹85.00 ▼(-3.35% Downside)

Emami Paper Mills Limited's overall stock score reflects moderate financial health with strong cash flow management but challenges in profitability and high leverage. Technical indicators suggest a neutral to slightly bearish outlook, and valuation metrics indicate potential overvaluation. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Operating cash flow strength

Consistently strong operating cash flow versus reported net income indicates the business converts earnings into cash effectively. This durable cash generation supports working capital, interest service and targeted capex, improving resilience and funding options over the medium term.

B2B packaging market focus

A core focus on packaging-grade paper for industrial converters and large end users creates stable, repeatable demand profiles. Serving business customers yields predictable volumes and contract-based sales patterns that support steady revenue streams across business cycles.

Equity base provides stability

A reasonable equity ratio provides a capital buffer against operating volatility and supports creditor confidence. Over the medium term this equity base can absorb shocks, enabling ongoing operations and facilitating restructuring or financing if needed despite leverage pressures.

Negative Factors

High leverage

Elevated debt-to-equity increases fixed financial obligations and reduces flexibility to fund growth or absorb shocks. Over 2–6 months, high leverage can amplify downturn effects via rising interest costs and constrain strategic investments or pricing responses to cyclical weakness.

Declining revenue trend

Negative revenue growth signals shrinking top-line scale, which erodes operating leverage and margin potential. If sustained over multiple quarters, declining revenues pressure profitability, limit reinvestment capacity and make it harder to service debt or fund modernization initiatives.

Profitability and margin pressure

Volatile net margins and pressured EBIT/EBITDA reflect structural cost or pricing challenges that impair earnings predictability. Persistent margin weakness undermines cash flow sustainability and hampers the company’s ability to invest in efficiency improvements or buffer against cyclical stress.

Emami Paper Mills Limited Business Overview & Revenue Model

Company Description

Emami Paper Mills Limited manufactures and sells paper and paper board products in India. Its products include newsprint, packaging board, writing and printing paper, and kraft paper. The company also exports its products. Emami Paper Mills Limited was incorporated in 1981 and is based in Kolkata, India.

How the Company Makes Money

Emami Paper Mills Limited generates revenue primarily through the sale of its paper products, which include writing and printing paper, newsprint, and specialty papers. The company operates on a B2B model, supplying these products to various sectors such as education, publishing, and packaging. Key revenue streams include direct sales to wholesalers, distributors, and large retailers, as well as exports to international markets. Additionally, Emami Paper Mills benefits from strategic partnerships with raw material suppliers, ensuring a steady supply of wood pulp and other necessary resources for production. The company also emphasizes sustainable practices, which can enhance its marketability and attract environmentally-conscious clients.

Emami Paper Mills Limited Financial Statement Overview

Summary

Emami Paper Mills Limited displays a mixed financial performance. Strong cash flow management is a positive, but challenges in profitability and revenue growth, along with high leverage, present risks. Overall, financial health is moderate with areas needing improvement.

Income Statement

Emami Paper Mills Limited shows mixed performance in its income statement. The gross profit margin has been relatively stable, but net profit margins have fluctuated, indicating operational challenges. Revenue growth has been inconsistent, with a notable decline in recent years. The EBIT and EBITDA margins have been under pressure, pointing to challenges in maintaining profitability.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio, suggesting leverage risk. Although there is a reasonable equity ratio, indicating some stability, the return on equity has been inconsistent due to fluctuating net income. Overall, the balance sheet portrays moderate financial health with potential risks due to high leverage.

Cash Flow

The cash flow statement reveals a strong operating cash flow relative to net income, indicating effective cash management. However, free cash flow has been inconsistent, with fluctuations in growth rates. Despite these challenges, the company maintains a positive free cash flow to net income ratio, highlighting efficient cash conversion.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	18.84B	19.28B	19.88B	23.71B	19.39B	11.81B
Gross Profit	5.48B	5.88B	5.83B	3.09B	6.19B	1.34B
EBITDA	1.41B	1.46B	2.30B	2.21B	2.92B	2.69B
Net Income	195.20M	260.10M	843.00M	691.70M	1.15B	510.50M
Balance Sheet
Total Assets	0.00	18.17B	17.14B	19.83B	17.79B	17.88B
Cash, Cash Equivalents and Short-Term Investments	5.60M	63.90M	50.80M	3.40M	17.50M	137.20M
Total Debt	0.00	6.50B	6.06B	8.58B	7.86B	9.09B
Total Liabilities	-6.78B	11.39B	9.40B	12.84B	11.26B	12.49B
Stockholders Equity	6.78B	6.78B	7.74B	6.99B	6.53B	5.39B
Cash Flow
Free Cash Flow	0.00	232.80M	3.32B	63.10M	2.94B	2.37B
Operating Cash Flow	0.00	437.80M	3.51B	324.60M	3.29B	2.46B
Investing Cash Flow	0.00	-169.50M	-102.30M	-235.20M	-337.40M	-72.60M
Financing Cash Flow	0.00	-318.10M	-3.36B	-89.80M	-3.07B	-2.46B

Emami Paper Mills Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 87.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:EMAMIPAP, the sentiment is Negative. The current price of 87.95 is above the 20-day moving average (MA) of 83.01, above the 50-day MA of 86.35, and below the 200-day MA of 94.66, indicating a bearish trend. The MACD of -1.20 indicates Negative momentum. The RSI at 44.63 is Neutral, neither overbought nor oversold. The STOCH value of 70.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:EMAMIPAP.

Emami Paper Mills Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RUCHIRA	68 Neutral	₹3.46B	5.12	―	4.14%	2.56%	36.81%
NRAIL	67 Neutral	₹7.50B	35.75	―	0.41%	36.98%	-64.34%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
KUANTUM	60 Neutral	₹7.41B	11.41	―	3.24%	-9.47%	-54.96%
EMAMIPAP	57 Neutral	₹5.08B	27.46	―	1.84%	-6.94%	-78.40%
MALUPAPER	45 Neutral	₹549.31M	-3.01	―	―	18.31%	-251.78%
ORIENTPPR	43 Neutral	₹4.28B	-16.36	―	1.08%	-0.52%	29.48%