Kuantum Papers Limited (KUANTUM) AI Stock Analysis

• Market Cap: ₹7.41B
• Dividend Yield: 3.24%
• Average Volume (3M): 2.41K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 1.27
• Revenue Growth: -9.47%
• EPS Growth: -54.96%
• Country: IN
• Employees: 1,357
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 0.66
• Shares Outstanding: 87,263,630
• 10 Day Avg. Volume: 2,521
• 30 Day Avg. Volume: 2,411
• PEG Ratio: -0.21
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.82
• P/FCF Ratio: -6.70
• 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: 60 Neutral
• Price Target: ₹89.00 ▼(-17.21% Downside)

Kuantum Papers Limited's overall stock score is primarily influenced by its mixed financial performance, with strong gross margins but challenges in net income and cash flow. The technical analysis indicates bearish momentum, and while the valuation is moderate, it does not suggest significant upside potential. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Strong Gross Margins

Sustained strong gross margins reflect durable production efficiency or favorable input mix, supporting long-term profitability even if top-line slows. High gross margins give flexibility to absorb commodity cost swings and preserve operating margins over the medium term.

Integrated Manufacturing & Captive Power

Integrated pulp-paper operations plus captive power lower energy and input dependency, creating a structural cost advantage in an energy-intensive industry. This vertical integration supports margin resilience and reduces exposure to external utility price shocks over months to years.

Solid Equity Ratio

A >50% equity ratio indicates a solid capital structure, providing a buffer in cyclical downturns and capacity to fund capex or weather slower demand. This structural strength supports creditworthiness and long-term investment flexibility.

Negative Factors

Declining Revenue

Negative revenue growth signals persistent demand or market-share challenges; over 2-6 months this can erode pricing power, underutilize capacity, and force margin trade-offs. Sustained top-line contraction pressures profitability and long-term strategic options.

Weak Cash Conversion

Negative free cash flow and worsening operating cash versus net income show the company struggles to convert earnings into cash. This structural cash weakness limits ability to self-fund capex, reduce debt, pay dividends, or respond to prolonged demand shocks.

Rising Leverage and Lower ROE

Higher leverage alongside falling ROE indicates reduced capital efficiency and rising financial risk. Structurally, increased interest burden and lower returns on equity can constrain growth investment and make the firm more vulnerable to cyclical downturns over the medium term.

Kuantum Papers Limited Business Overview & Revenue Model

Company Description

Kuantum Papers Limited (KUANTUM) is a leading manufacturer and supplier of high-quality paper products, catering to various sectors including education, commercial printing, and packaging. The company specializes in a wide range of paper types, including but not limited to, coated and uncoated papers, specialty papers, and sustainable paper solutions. Through innovation and a commitment to sustainability, KUANTUM aims to meet the evolving needs of its customers while maintaining a strong focus on environmental responsibility.

How the Company Makes Money

Kuantum Papers Limited generates revenue primarily through the sale of its diverse range of paper products to businesses in various sectors. The company's key revenue streams include direct sales to wholesalers, retailers, and corporate clients, as well as online sales through its e-commerce platform. Additionally, KUANTUM benefits from strategic partnerships with distribution companies that help expand its market reach. The company also focuses on offering customized paper solutions, allowing it to cater to specific client needs, which can command premium pricing. Factors contributing to its earnings include operational efficiency, cost-effective production processes, and a strong brand reputation in the paper industry.

Kuantum Papers Limited Financial Statement Overview

Summary

Kuantum Papers Limited shows strong gross margins and a solid equity base, but faces challenges with net income margins, revenue growth, and cash flow management. The company should prioritize improving cash flow operations and controlling costs to enhance profitability and maintain financial stability.

Income Statement

Kuantum Papers Limited has shown a mixed performance in its income statement. The Gross Profit Margin improved significantly from 40.8% in 2024 to 37.9% in 2025, indicating increased efficiency in cost management. However, the Net Profit Margin decreased to 10.4% in 2025 from 15.2% in 2024, reflecting higher costs or lower revenue. The Revenue Growth Rate has been negative, which is a concern as total revenue decreased from 2024 to 2025. EBIT and EBITDA margins remained stable, illustrating consistent operational performance. Overall, the company has strong gross margins, but needs to address net income challenges.

Balance Sheet

The balance sheet of Kuantum Papers Limited reveals a moderate financial stability. The Debt-to-Equity Ratio increased to 0.54 in 2025 from 0.46 in 2024, suggesting higher leverage. The Return on Equity (ROE) decreased to 9.5% in 2025 from 16.4% in 2024, indicating reduced efficiency in generating profits from shareholders' equity. The Equity Ratio improved slightly to 57.4% in 2025, reflecting a solid capital structure. The company needs to manage its debt levels to avoid potential risks associated with high leverage.

Cash Flow

The cash flow statement shows some areas of concern, particularly in free cash flow. The Free Cash Flow Growth Rate is negative, with free cash flow turning negative in 2025. The Operating Cash Flow to Net Income Ratio decreased, indicating lower cash generation relative to net income. The Free Cash Flow to Net Income Ratio is negative, showing that net income is not translating into free cash flow effectively. The company should focus on optimizing its cash flow operations to enhance liquidity.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	10.47B	11.07B	12.06B	13.02B	8.26B	4.02B
Gross Profit	4.79B	4.20B	3.27B	7.13B	3.62B	1.86B
EBITDA	2.16B	2.43B	3.35B	3.20B	1.20B	310.99M
Net Income	890.51M	1.15B	1.84B	1.36B	134.23M	-127.27M
Balance Sheet
Total Assets	0.00	21.13B	18.88B	16.89B	16.76B	16.14B
Cash, Cash Equivalents and Short-Term Investments	92.38M	214.38M	779.30M	188.51M	46.20M	4.52M
Total Debt	0.00	6.54B	5.13B	5.13B	7.62B	6.89B
Total Liabilities	-12.13B	9.00B	7.64B	7.23B	8.46B	7.97B
Stockholders Equity	12.13B	12.13B	11.24B	9.67B	8.30B	8.17B
Cash Flow
Free Cash Flow	0.00	-1.36B	1.22B	3.10B	55.10M	-1.05B
Operating Cash Flow	0.00	1.77B	2.98B	3.75B	483.38M	796.27M
Investing Cash Flow	0.00	-3.15B	-1.56B	-596.52M	-346.45M	-1.78B
Financing Cash Flow	0.00	762.90M	-726.47M	-3.18B	-105.85M	984.91M

Kuantum Papers Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 107.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:KUANTUM, the sentiment is Negative. The current price of 107.5 is above the 20-day moving average (MA) of 90.76, above the 50-day MA of 92.49, and above the 200-day MA of 106.86, indicating a bearish trend. The MACD of -1.97 indicates Positive momentum. The RSI at 32.13 is Neutral, neither overbought nor oversold. The STOCH value of 23.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:KUANTUM.

Kuantum Papers 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%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
PDMJEPAPER	61 Neutral	₹8.09B	8.73	―	0.62%	-5.63%	-27.65%
PLASTIBLEN	61 Neutral	₹3.86B	11.91	―	1.53%	-2.17%	-5.39%
KUANTUM	60 Neutral	₹7.41B	11.41	―	3.24%	-9.47%	-54.96%
SESHAPAPER	58 Neutral	₹14.20B	16.23	―	1.03%	-9.17%	-57.37%
ORIENTPPR	43 Neutral	₹4.28B	-17.01	―	1.08%	-0.52%	29.48%

Kuantum Papers Limited Corporate Events

Kuantum Papers Updates Market on Physical Share Transfer Re‑lodgement Status

Kuantum Papers Limited has disclosed that, in compliance with a recent SEBI circular on transfer of physical shares, it has received and processed a small number of re-lodgement requests through its Registrar and Share Transfer Agent, MAS Services Limited, during the special window from October 1, 2025 to January 6, 2026. Of four re-lodgement requests received for transfer of physical shares in this period, one was approved, three were rejected, and the average processing time was 12 days, signaling the company’s adherence to updated regulatory norms on physical share transfers and providing transparency to shareholders and market regulators on the handling of such legacy holdings.