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

• Market Cap: ₹15.08B
• Dividend Yield: 1.03%
• Average Volume (3M): 1.26K
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.97
• 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): 3.10
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: ₹250.00 ▲(4.17% 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: Neutral
• Last Price: 240.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SESHAPAPER, the sentiment is Neutral. The current price of 240 is above the 20-day moving average (MA) of 227.94, above the 50-day MA of 234.43, and below the 200-day MA of 262.94, indicating a neutral trend. The MACD of -1.12 indicates Negative momentum. The RSI at 55.23 is Neutral, neither overbought nor oversold. The STOCH value of 86.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	₹3.60B	5.34	―	4.14%	2.56%	36.81%
NRAIL	67 Neutral	₹7.70B	36.69	―	0.41%	36.98%	-64.34%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
PDMJEPAPER	61 Neutral	₹7.81B	8.42	―	0.62%	-5.63%	-27.65%
KUANTUM	60 Neutral	₹7.76B	11.96	―	3.24%	-9.47%	-54.96%
SESHAPAPER	58 Neutral	₹15.08B	17.23	―	1.03%	-9.17%	-57.37%
TNPL	58 Neutral	₹9.73B	32.90	―	2.08%	4.65%	-127.24%

Seshasayee Paper & Boards Ltd. Corporate Events

Seshasayee Paper Flags Lower Profitability on Export Hit and Sluggish Domestic Paper Demand

Seshasayee Paper & Boards Ltd reported its unaudited financial results for the quarter and nine months ended 31 December 2025, highlighting production of 182,802 tonnes and sales of 168,000 tonnes, with overall capacity utilisation at 94%. The Erode unit ran above rated capacity at 105%, but the Tirunelveli unit operated at only 73% due to reduced export orders and higher work-in-progress, contributing to weaker profitability alongside lower average realisations per tonne and a sharp drop in export volumes after US tariff hikes and suspension of shipments from June to September 2025. The company noted that some of the margin pressure was offset by lower production costs from operational improvements, while domestic demand remained sluggish in the third quarter amid GST 2.0 reforms that left notebook paper at zero GST, giving imported paper a 12–15% cost advantage over Indian manufacturers and intensifying competitive pressures in the local market.

Seshasayee Paper Wins Major Relief in GST Appeal as Tax Demand Sharply Cut

Seshasayee Paper & Boards Ltd has received a largely favourable order from the Commissioner (Appeals) in a GST dispute, sharply reducing an earlier tax demand raised by the Additional Commissioner, Salem CGST Commissionerate. The original demand of Rs 712.24 lakhs in tax plus Rs 100.93 lakhs in penalty, relating to alleged short payment of GST under reverse charge mechanism and excess input tax credit claims for FY 2017-18 to 2021-22, has been cut to a demand of Rs 16.00 lakhs with applicable interest and a penalty of Rs 1.06 lakhs, based on a physical copy of the order pending upload to the GST portal, easing a significant potential financial and regulatory overhang for the company and its stakeholders.