Pudumjee Paper Products Ltd. (PDMJEPAPER) AI Stock Analysis

• Market Cap: ₹9.24B
• Dividend Yield: 0.62%
• Average Volume (3M): 11.82K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 1.34
• Revenue Growth: -5.63%
• EPS Growth: -27.65%
• Country: IN
• Employees: 633
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 1.78
• Shares Outstanding: 94,950,000
• 10 Day Avg. Volume: 6,920
• 30 Day Avg. Volume: 11,819
• PEG Ratio: -3.79
• Price to Book (P/B): 1.62
• Price to Sales (P/S): 1.17
• P/FCF Ratio: 16.78
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ₹112.00 ▲(15.05% Upside)

The overall stock score of 61 reflects a strong financial position with low leverage and healthy margins, but is offset by bearish technical indicators and concerns over declining revenue growth and return on equity. The stock's valuation suggests it may be undervalued, but the low dividend yield limits its attractiveness to income-focused investors.

Positive Factors

Low Leverage

Low leverage indicates strong financial stability, reducing risk and providing flexibility for future investments or downturns.

Sustainability Focus

A focus on sustainable practices aligns with growing consumer demand for eco-friendly products, potentially driving long-term growth.

Strong Gross Margins

High gross margins reflect effective cost management and pricing power, supporting profitability even in competitive markets.

Negative Factors

Declining Revenue Growth

Declining revenue growth suggests challenges in market expansion or product demand, potentially impacting future earnings.

Decreased Cash Flow Conversion

Reduced cash flow conversion can limit financial flexibility, affecting the company's ability to invest in growth or weather downturns.

Zero Return on Equity

A zero return on equity indicates the company is not generating returns for shareholders, which could deter investment and affect stock performance.

Pudumjee Paper Products Ltd. Business Overview & Revenue Model

Company Description

Pudumjee Paper Products Limited manufactures and markets paper products in India. The company operates through Paper and Hygiene Products segments. It offers facial, napkin, bathroom/toilet, toweling, and diaper tissues; absorbent kraft, barrier, overlay, print base, and shuttering base paper products; bake oven, grease proof, grease proof slip easy, TDL poster, vegetable parchment, wet strength grease proof, solid bag, and solid wrap paper products; Bible printing, medical, opaque laminating base (OLB) pharma, yellow interleaving, and SIRIPAC paper products; and glassine, super white glassine, S.W. glassine, OLB, and super calendared kraft/release base paper products. The company also provides absorbent porous kraft, anti-rust tissue, melamine transfer, carbon base, packing tissue, parchmentine, and saturating base paper products; and band roll and MICR cheque papers, as well as thin printing paper products. In addition, it markets and distributes hygiene products, such as bathroom rolls, kitchen towels, napkins, dispensers, sanitizers, disinfectants, hand wash soaps, etc. hygiene products under the Greenlime and Chef Smartr brand names for hotels, airports, corporate offices, professional chefs, restaurants, caterings, and facility managers. The company also exports its products. Pudumjee Paper Products Limited was incorporated in 2015 and is based in Mumbai, India.

How the Company Makes Money

Pudumjee Paper Products Ltd. generates revenue through the production and sale of its diverse range of paper products, primarily tissue paper and hygiene products, which are sold to retailers, wholesalers, and directly to consumers. The company benefits from economies of scale, allowing it to maintain competitive pricing while ensuring quality. Key revenue streams include bulk orders from large retailers and contracts with businesses in the food service and healthcare industries, which require reliable supplies of hygiene products. Additionally, Pudumjee Paper Products has established significant partnerships with distributors and retailers, enhancing its market reach and ensuring consistent sales. The company's focus on eco-friendly products also attracts a growing segment of environmentally-conscious consumers, further contributing to its earnings.

Pudumjee Paper Products Ltd. Financial Statement Overview

Summary

Pudumjee Paper Products Ltd. demonstrates a strong financial position with low leverage and healthy profit margins. However, recent declines in revenue growth and return on equity are areas of concern that need addressing. The company should focus on improving profitability and cash flow conversion to sustain its financial health.

Income Statement

Pudumjee Paper Products Ltd. has shown strong gross profit margins, consistently above 30% in recent years, indicating effective cost management. However, the net profit margin has slightly decreased to 11.8% in the latest year, reflecting some pressure on profitability. Revenue growth has been inconsistent, with a decline of 1.5% in the most recent period, which could be a concern if the trend continues. Overall, the company maintains healthy EBIT and EBITDA margins, demonstrating operational efficiency.

Balance Sheet

The company has a very low debt-to-equity ratio of 0.02, indicating strong financial stability and low leverage risk. The equity ratio is robust, with stockholders' equity making up a significant portion of total assets. However, the return on equity has dropped to zero, which is concerning and suggests that the company is not generating returns for its shareholders currently. Overall, the balance sheet reflects a solid financial position with minimal debt.

Cash Flow

Operating cash flow remains strong, covering a significant portion of net income, though it has decreased compared to previous years. Free cash flow has shown significant growth, but the free cash flow to net income ratio has decreased, indicating potential challenges in converting income into cash. The company needs to focus on improving cash conversion to maintain financial flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.03B	8.09B	7.85B	7.59B	5.55B	4.37B
Gross Profit	2.80B	2.52B	2.38B	1.80B	1.61B	1.45B
EBITDA	1.56B	1.45B	1.49B	932.16M	620.83M	515.21M
Net Income	1.04B	957.60M	981.40M	593.95M	345.32M	300.31M
Balance Sheet
Total Assets	0.00	7.63B	7.15B	6.26B	5.97B	5.48B
Cash, Cash Equivalents and Short-Term Investments	1.66B	1.66B	1.32B	354.68M	474.77M	988.15M
Total Debt	0.00	120.69M	194.89M	544.00M	765.29M	579.61M
Total Liabilities	-5.83B	1.81B	2.22B	2.29B	2.54B	2.37B
Stockholders Equity	5.83B	5.83B	4.92B	3.97B	3.43B	3.10B
Cash Flow
Free Cash Flow	0.00	564.49M	1.25B	93.60M	-535.15M	824.25M
Operating Cash Flow	0.00	823.69M	1.33B	164.30M	173.80M	859.31M
Investing Cash Flow	0.00	-349.68M	-947.84M	181.60M	-278.88M	-495.93M
Financing Cash Flow	0.00	-167.87M	-429.01M	-307.00M	87.98M	-325.02M

Pudumjee Paper Products Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 97.35
• 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:PDMJEPAPER, the sentiment is Negative. The current price of 97.35 is below the 20-day moving average (MA) of 98.57, below the 50-day MA of 107.51, and below the 200-day MA of 113.06, indicating a bearish trend. The MACD of -2.99 indicates Negative momentum. The RSI at 36.80 is Neutral, neither overbought nor oversold. The STOCH value of 45.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:PDMJEPAPER.

Pudumjee Paper Products Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RUCHIRA	68 Neutral	₹3.55B	5.27	―	4.13%	2.56%	36.81%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
PDMJEPAPER	61 Neutral	₹9.24B	10.09	―	0.62%	-5.63%	-27.65%
KUANTUM	60 Neutral	₹8.14B	12.54	―	3.26%	-9.47%	-54.96%
SESHAPAPER	58 Neutral	₹15.06B	17.64	―	1.04%	-9.17%	-57.37%
TNPL	55 Neutral	₹9.89B	-49.75	―	2.07%	4.65%	-127.24%

Pudumjee Paper Products Ltd. Corporate Events

Pudumjee Paper Faces GST Order, Plans Appeal

Pudumjee Paper Products Ltd. has received an order from the Maharashtra Goods & Services Tax Department disallowing the Input Tax Credit claimed on differential IGST paid against imports for the financial year 2021-2022. The order, dated November 28, 2025, imposes a total demand of Rs. 15,98,154, including tax, interest, and penalty. Despite this development, the company reports no material impact on its financials or operations and plans to appeal the order.

Pudumjee Paper Products Ltd. Announces Postal Ballot and E-Voting Notice

Pudumjee Paper Products Ltd. has announced the publication of a notice regarding a postal ballot and remote e-voting information in leading newspapers. This move is part of the company’s compliance with SEBI regulations and aims to seek shareholder approval for certain business matters through electronic voting, reflecting the company’s efforts to engage with its stakeholders effectively and maintain transparency in its operations.

Pudumjee Paper Products Announces Director Retirements

Pudumjee Paper Products Limited has announced the retirement of two of its Non-Executive Independent Directors, Mr. Vinod Kumar Beswal and Mr. Nandan Damani, effective from the close of business on October 20, 2025. This change follows the completion of their tenure, which was set during the company’s Annual General Meeting in August 2021. The retirement of these directors marks a significant transition in the company’s board composition, potentially impacting its governance and strategic direction.

Pudumjee Paper Products Ltd. Receives SEBI Compliance Certification

Pudumjee Paper Products Ltd. has announced the receipt of a certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, for the quarter ending September 30, 2025. This certification, provided by KFin Technologies Limited, confirms that the company has complied with the necessary regulations regarding the dematerialization and rematerialization of securities. This announcement underscores Pudumjee Paper Products Ltd.’s adherence to regulatory requirements, potentially enhancing its credibility and trust among stakeholders and investors.