Seshasayee Paper & Boards Ltd. (SESHAPAPER) AI Stock Analysis

• Market Cap: ₹15.28B
• Dividend Yield: 1.03%
• Average Volume (3M): 1.26K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 0.98
• Revenue Growth: -9.17%
• EPS Growth: -57.37%
• Country: IN
• Employees: 1,026
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 3.72
• Shares Outstanding: 63,068,140
• 10 Day Avg. Volume: 878
• 30 Day Avg. Volume: 1,258
• PEG Ratio: -0.24
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.91
• P/FCF Ratio: -12.81
• 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: 58 Neutral
• Price Target: ₹250.00 ▲(2.97% Upside)

The overall stock score of 58 reflects significant financial performance challenges, particularly in cash flow and declining profitability margins. Technical analysis indicates bearish momentum, further weighing on the stock. While the valuation is reasonable, it does not offset the operational issues. The absence of earnings call data and corporate events leaves these areas unaddressed.

Positive Factors

Sustainability Commitment

The company's focus on sustainability attracts environmentally conscious clients, providing a competitive edge and supporting long-term demand.

Strong Balance Sheet

A strong balance sheet with low leverage enhances financial stability, providing resilience against economic downturns and flexibility for growth investments.

Strategic Partnerships

These partnerships ensure cost efficiency and margin sustainability, supporting competitive pricing and profitability over the long term.

Negative Factors

Declining Revenue

Declining revenue growth indicates potential challenges in market demand or competitive positioning, which could impact long-term financial performance.

Cash Flow Issues

Poor cash flow management can hinder operational efficiency and limit the company's ability to invest in growth opportunities, affecting long-term sustainability.

Profitability Decline

A declining profit margin suggests reduced operational efficiency and profitability, potentially affecting the company's ability to reinvest in its business.

Seshasayee Paper & Boards Ltd. Business Overview & Revenue Model

Company Description

Seshasayee Paper and Boards Limited engages in the manufacture and sale of printing and writing paper in India. It also owns and operates integrated pulp, paper, and paper board mills. In addition, it offers paper board. The company also exports its products. Seshasayee Paper and Boards Limited was incorporated in 1960 and is based in Erode, India.

How the Company Makes Money

Seshasayee Paper & Boards Ltd. generates revenue primarily through the sale of its paper and paper board products. The company's key revenue streams include the domestic sale of writing and printing papers, which cater to educational institutions and publishers, as well as the packaging boards that serve the packaging industry. Additionally, export sales contribute to the company's earnings, as it supplies its products to international markets. Factors such as efficient production processes, strategic market positioning, and a diversified product portfolio play significant roles in the company's ability to maintain profitability in the competitive paper industry.

Seshasayee Paper & Boards Ltd. Financial Statement Overview

Summary

Seshasayee Paper & Boards Ltd. faces challenges with declining revenues and profitability margins, alongside a concerning cash flow situation. The balance sheet remains solid with low leverage and high equity, but the decrease in Return on Equity points to reduced efficiency. While the company's financial stability is strong, the operational and cash flow issues need addressing to sustain long-term growth.

Income Statement

The company has shown a decline in Total Revenue in the most recent period, with a Revenue Growth Rate of -2.63%. The Gross Profit Margin stands at 32.98%, which indicates a decent level of profitability, but there has been a significant drop in Net Profit Margin to 6.22% from 15.03% in the previous year. Similarly, EBIT and EBITDA margins have reduced to 7.20% and 6.26% respectively from higher levels last year, reflecting reduced operational efficiency.

Balance Sheet

The company maintains a strong Equity Ratio of 78.87%, which indicates financial stability with a solid base of stockholder equity compared to total assets. The Debt-to-Equity Ratio is low at 0.04, reflecting minimal leverage risk. However, the Return on Equity has dropped to 5.49% from 14.17%, suggesting decreased efficiency in generating profits from equity.

Cash Flow

The cash flow situation is concerning, with a significant Free Cash Flow decline and negative Operating Cash Flow of -612.8 million, indicating cash management issues. The Free Cash Flow to Net Income Ratio is negative, and the Operating Cash Flow to Net Income Ratio is also unfavorable, signaling inefficiencies in converting profits to cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	17.18B	17.54B	18.02B	20.83B	13.45B	7.78B
Gross Profit	6.17B	5.79B	8.17B	6.04B	2.20B	1.36B
EBITDA	1.37B	1.10B	3.90B	5.61B	1.79B	1.24B
Net Income	876.00M	1.09B	2.71B	3.96B	1.10B	1.06B
Balance Sheet
Total Assets	0.00	25.22B	23.91B	20.79B	16.60B	15.17B
Cash, Cash Equivalents and Short-Term Investments	4.43B	4.43B	3.95B	2.90B	2.14B	2.06B
Total Debt	0.00	818.60M	210.00M	0.00	41.20M	78.00M
Total Liabilities	-19.88B	5.33B	4.80B	4.43B	4.04B	3.74B
Stockholders Equity	19.88B	19.88B	19.11B	16.35B	12.55B	11.43B
Cash Flow
Free Cash Flow	0.00	-1.24B	1.62B	2.97B	1.70B	-1.10B
Operating Cash Flow	0.00	-612.80M	2.02B	3.29B	2.74B	-70.90M
Investing Cash Flow	0.00	423.90M	-2.25B	-3.72B	-2.50B	-817.40M
Financing Cash Flow	0.00	234.60M	-188.80M	-223.50M	-220.40M	-305.80M

Seshasayee Paper & Boards Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 242.80
• 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:SESHAPAPER, the sentiment is Positive. The current price of 242.8 is above the 20-day moving average (MA) of 239.28, below the 50-day MA of 247.41, and below the 200-day MA of 268.40, indicating a neutral trend. The MACD of -1.93 indicates Negative momentum. The RSI at 50.79 is Neutral, neither overbought nor oversold. The STOCH value of 64.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:SESHAPAPER.

Seshasayee Paper & Boards Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RUCHIRA	68 Neutral	₹3.61B	5.35	―	4.14%	2.56%	36.81%
NRAIL	67 Neutral	₹8.43B	40.09	―	0.41%	36.98%	-64.34%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
PDMJEPAPER	61 Neutral	₹9.18B	10.15	―	0.62%	-5.63%	-27.65%
KUANTUM	60 Neutral	₹8.04B	12.44	―	3.24%	-9.47%	-54.96%
SESHAPAPER	58 Neutral	₹15.28B	17.93	―	1.03%	-9.17%	-57.37%
TNPL	55 Neutral	₹9.99B	-49.68	―	2.08%	4.65%	-127.24%

Seshasayee Paper & Boards Ltd. Corporate Events

Seshasayee Paper & Boards Ltd. Reports Q2 2025 Financial Results

Seshasayee Paper & Boards Ltd. announced its unaudited standalone and consolidated financial results for the quarter and half-year ending September 30, 2025. The results, approved by the Board of Directors, show a decrease in total income compared to the previous year, with revenue from operations and other income both declining. Despite this, the company managed to maintain profitability, although at a reduced level compared to the previous year. The announcement provides insights into the company’s operational performance and financial health, which are crucial for stakeholders to assess its market positioning and future prospects.