Kuantum Papers Limited (KUANTUM) AI Stock Analysis

• Market Cap: ₹9.75B
• Dividend Yield: 2.73%
• Average Volume (3M): 6.84K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 1.39
• Revenue Growth: -11.03%
• EPS Growth: -43.24%
• Country: IN
• Employees: 1,357
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 1.38
• Shares Outstanding: 87,263,630
• 10 Day Avg. Volume: 10,033
• 30 Day Avg. Volume: 6,843
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹123.00
• Price Target Upside: 12.02% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: ₹123.00 ▲(12.02% Upside)

Kuantum Papers Limited's overall stock score reflects a mixed financial performance with strong valuation metrics. The low P/E ratio and attractive dividend yield are significant positives, but the technical indicators suggest bearish momentum. The company needs to address its cash flow and revenue growth challenges to improve its financial standing.

Kuantum Papers Limited Business Overview & Revenue Model

Company Description

Kuantum Papers Limited (KUANTUM) is a leading Indian paper manufacturing company specializing in the production of writing and printing paper. The company is focused on delivering high-quality paper products primarily used in printing textbooks, notebooks, and other stationery items. With a strong emphasis on sustainable and eco-friendly practices, Kuantum Papers operates in the pulp and paper sector, catering to various educational and commercial needs.

How the Company Makes Money

Kuantum Papers Limited generates revenue through the manufacturing and sale of writing and printing paper. The company's revenue model is primarily based on its ability to produce and sell paper products to educational institutions, publishers, and stationery manufacturers. Key revenue streams include direct sales to large-scale buyers and distributors, as well as export sales to international markets. Kuantum Papers capitalizes on its strategic partnerships with suppliers and distributors to optimize production costs and expand its market reach. Additionally, the company benefits from its investment in sustainable practices, which enhances its brand reputation and attracts environmentally conscious customers.

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 2023	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	11.06B	11.07B	13.02B	12.06B	8.26B	4.02B
Gross Profit	5.18B	4.20B	7.13B	3.27B	3.62B	1.86B
EBITDA	2.45B	2.43B	3.20B	3.35B	1.24B	294.54M
Net Income	1.15B	1.15B	1.36B	1.84B	134.23M	-127.27M
Balance Sheet
Total Assets	21.13B	21.13B	16.89B	18.88B	16.76B	16.14B
Cash, Cash Equivalents and Short-Term Investments	214.38M	214.38M	188.51M	705.86M	46.20M	4.52M
Total Debt	6.54B	6.54B	5.13B	5.13B	7.62B	6.89B
Total Liabilities	9.00B	9.00B	7.23B	7.64B	8.46B	7.97B
Stockholders Equity	12.13B	12.13B	9.67B	11.24B	8.30B	8.17B
Cash Flow
Free Cash Flow	0.00	-1.36B	3.10B	1.22B	55.10M	-1.05B
Operating Cash Flow	0.00	1.77B	3.75B	2.98B	483.38M	796.27M
Investing Cash Flow	0.00	-3.15B	-596.52M	-1.56B	-346.45M	-1.78B
Financing Cash Flow	0.00	762.90M	-3.18B	-726.47M	-105.85M	984.91M

Kuantum Papers Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 109.80
• 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 109.8 is below the 20-day moving average (MA) of 113.82, below the 50-day MA of 119.12, and below the 200-day MA of 114.46, indicating a bearish trend. The MACD of -2.50 indicates Positive momentum. The RSI at 39.01 is Neutral, neither overbought nor oversold. The STOCH value of 22.72 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	75 Outperform	₹4.46B	6.41		3.35%	1.65%	64.75%
PDMJEPAPER	70 Outperform	₹12.41B	11.87		0.46%	-0.51%	-8.77%
KUANTUM	68 Neutral	₹9.75B	10.95		2.73%	-11.03%	-43.24%
PLASTIBLEN	62 Neutral	₹4.95B	15.71		1.29%	-6.06%	-16.45%
Sector *	61 Neutral	$10.27B	6.37	0.76%	2.91%	3.10%	-36.03%
SESHAPAPER	59 Neutral	₹16.83B	18.34		0.93%	-4.45%	-62.88%
ORIENTPPR	48 Neutral	₹5.93B	―		0.89%	8.33%	55.98%

Kuantum Papers Limited Corporate Events

Kuantum Papers Reports Decline in Q1 2025 Financial Results

Kuantum Papers Limited has released its unaudited financial results for the quarter ending June 30, 2025, showing a decline in revenue and profits compared to the previous quarter. The company’s revenue from operations was reported at 222.92 million, with a net profit of 12.06 million, reflecting a decrease from the previous quarter’s figures. These results may impact the company’s market positioning and stakeholder confidence, as they indicate a challenging financial period.