Malu Paper Mills Limited (MALUPAPER) AI Stock Analysis

• Market Cap: ₹549.31M
• Dividend Yield: N/A
• Average Volume (3M): 7.91K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.32
• Revenue Growth: 18.31%
• EPS Growth: -251.78%
• Country: IN
• Employees: 211
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): -3.28
• Shares Outstanding: 17,059,250
• 10 Day Avg. Volume: 1,403
• 30 Day Avg. Volume: 7,914
• PEG Ratio: <0.01
• Price to Book (P/B): -8.83
• Price to Sales (P/S): 0.18
• P/FCF Ratio: -5.10
• 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: 45 Neutral
• Price Target: ₹31.00 ▼(-13.17% Downside)

Malu Paper Mills Limited's overall stock score is primarily impacted by its weak financial performance, which is the most significant factor. The technical analysis provides a neutral outlook, while poor valuation metrics further weigh down the score. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Recent revenue growth

Sustained top-line growth (~18% reported) indicates underlying demand for the firm's paper products and some pricing or volume resilience. Over 2-6 months this supports recovery potential by providing a revenue base to absorb fixed costs and fund margin improvement if cost controls follow.

Operational profitability potential

A recorded episode of EBIT/EBITDA profitability in 2024 shows the mill can generate operating profit under the right conditions. This structural capability suggests management can restore durable margins via operational fixes, pricing, or utilization improvements over the medium term.

B2B manufacturing business model

A B2B paper manufacturing model yields repeatable, contract-driven revenue streams and industrial customer relationships. Over months this provides predictability versus consumer cycles, and owned mill assets create structural barriers to entry that can protect margins once financial stability is restored.

Negative Factors

Negative equity and high leverage

Negative shareholder equity signals severe capital impairment and constrained balance sheet flexibility. Over the coming months this raises refinancing and covenant breach risk, limits ability to absorb shocks, and forces dependence on restructuring or creditor concessions to remain solvent.

Weak cash generation

Inconsistent operating cash flows and recent negative free cash flow indicate the business cannot self-fund operations or investments sustainably. Reliance on external financing to cover working capital is a durable weakness that increases liquidity risk and constrains strategic initiatives over months.

Volatile, negative profitability metrics

Volatile gross margins and a recent shift to negative net margin, along with a steep EPS decline, reflect structural margin pressure from costs or inefficiencies. Persistently negative profitability undermines retained earnings, limits reinvestment capacity, and complicates return to stable, long-term profitability.

Malu Paper Mills Limited Business Overview & Revenue Model

Company Description

Malu Paper Mills Limited manufactures and sells paper in India. It provides newsprint, writing and printing, kraft, and packaging paper. Malu Paper Mills Limited was incorporated in 1994 and is based in Nagpur, India.

How the Company Makes Money

MALUPAPER generates revenue primarily through the sale of its paper products to various markets, including commercial, educational, and industrial sectors. The company's revenue model is based on direct sales through distribution channels and partnerships with wholesalers and retailers. Key revenue streams include bulk orders from corporations and institutions, as well as smaller retail sales. Additionally, MALUPAPER benefits from long-term contracts with major clients, which provides a stable income source. The company also explores opportunities for exporting its products to international markets, further diversifying its revenue base. Strategic partnerships with suppliers of raw materials and technology providers enhance production efficiency and cost-effectiveness, contributing to overall profitability.

Malu Paper Mills Limited Financial Statement Overview

Summary

Malu Paper Mills Limited is experiencing severe financial difficulties. The income statement shows declining profitability and negative margins. The balance sheet is highly leveraged with negative equity, and cash flow issues indicate reliance on external funding. Overall, the financial health is precarious, necessitating urgent restructuring.

Income Statement

Malu Paper Mills Limited has experienced significant fluctuations in profitability with a recent decline in revenue. The gross profit margin has been inconsistent, and the net profit margin has turned negative, indicating financial stress. Despite a brief period of EBIT and EBITDA profitability in 2024, the company has reverted to negative margins, signaling operational challenges.

Balance Sheet

The company's balance sheet reflects high leverage, with a negative stockholders' equity position in 2025, indicating financial distress. The debt-to-equity ratio is concerningly high due to negative equity, and the return on equity has been volatile, recently turning negative. The equity ratio has decreased significantly, highlighting increased financial risk.

Cash Flow

Cash flow analysis shows inconsistent operating cash flows with negative free cash flow in recent years. The free cash flow to net income ratio is unfavorable, pointing to cash generation issues. Financing activities have been necessary to support operations, suggesting reliance on external funding.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.15B	2.78B	2.74B	2.33B	2.12B	1.69B
Gross Profit	811.70M	646.87M	1.00B	530.15M	48.52M	107.69M
EBITDA	-60.54M	-7.80M	169.31M	-5.80M	44.63M	63.10M
Net Income	-163.15M	-121.32M	8.95M	-104.54M	-62.62M	-57.71M
Balance Sheet
Total Assets	0.00	1.72B	1.67B	1.51B	1.55B	1.51B
Cash, Cash Equivalents and Short-Term Investments	1.48M	26.61M	528.00K	18.66M	408.00K	502.98K
Total Debt	0.00	1.42B	1.31B	1.23B	1.03B	932.66M
Total Liabilities	57.22M	1.78B	1.61B	1.45B	1.38B	1.27B
Stockholders Equity	-57.22M	-57.22M	67.98M	63.62M	172.48M	240.66M
Cash Flow
Free Cash Flow	0.00	-99.02M	15.28M	-106.07M	-23.20M	20.10M
Operating Cash Flow	0.00	-74.54M	92.85M	-91.63M	-22.42M	35.16M
Investing Cash Flow	0.00	-30.39M	-75.08M	-14.96M	149.00K	-13.77M
Financing Cash Flow	0.00	105.89M	-17.49M	106.34M	24.70M	-24.70M

Malu Paper Mills Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 35.70
• 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:MALUPAPER, the sentiment is Negative. The current price of 35.7 is above the 20-day moving average (MA) of 33.62, above the 50-day MA of 35.33, and below the 200-day MA of 38.20, indicating a bearish trend. The MACD of -0.97 indicates Positive momentum. The RSI at 39.42 is Neutral, neither overbought nor oversold. The STOCH value of 14.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:MALUPAPER.

Malu Paper Mills Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STARPAPER	74 Outperform	₹2.24B	5.80	―	2.15%	-5.21%	-32.96%
RUCHIRA	68 Neutral	₹3.46B	5.12	―	4.14%	2.56%	36.81%
RAMAPHO	65 Neutral	₹5.37B	10.23	―	0.46%	22.68%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
BALLARPUR	46 Neutral	₹1.15B	―	―	―	―	―
MALUPAPER	45 Neutral	₹549.31M	-3.01	―	―	18.31%	-251.78%
BALKRISHNA	42 Neutral	₹538.07M	33.40	―	―	19.95%	―

Malu Paper Mills Limited Corporate Events

Malu Paper Mills Closes Trading Window Ahead of Q3 FY2025 Results

Malu Paper Mills Limited has announced the closure of its trading window for designated persons and their immediate relatives from the end of the quarter on 31 December 2025 until 48 hours after the company announces its unaudited financial results for that quarter. The move, undertaken in line with SEBI’s Prohibition of Insider Trading Regulations and listing requirements, is a standard governance measure aimed at preventing insider trading ahead of earnings disclosure, signaling continued regulatory compliance and transparency for shareholders and market participants.