Star Paper Mills Ltd. (STARPAPER) AI Stock Analysis

• Market Cap: ₹2.55B
• Dividend Yield: 2.15%
• Average Volume (3M): 521.00
• Price to Earnings (P/E): 6.6
• Beta (1Y): 1.17
• Revenue Growth: -5.21%
• EPS Growth: -32.96%
• Country: IN
• Employees: 380
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 8.34
• Shares Outstanding: 15,608,350
• 10 Day Avg. Volume: 785
• 30 Day Avg. Volume: 521
• PEG Ratio: -0.17
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.57
• P/FCF Ratio: 22.60
• 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: 74 Outperform
• Price Target: ₹189.00 ▲(16.31% Upside)

Star Paper Mills Ltd. scores well due to its strong financial performance and attractive valuation, despite technical indicators suggesting a bearish trend. The company's robust balance sheet and low P/E ratio are significant strengths, while the lack of upward momentum in technical indicators is a concern. The absence of earnings call data and corporate events did not impact the score.

Positive Factors

Balance Sheet Strength

A low debt-to-equity ratio indicates minimal leverage, providing financial stability and reducing risk, which supports long-term operational resilience.

Profitability

High profit margins reflect efficient cost management and pricing power, which can sustain profitability even amidst revenue challenges.

Cash Generation Ability

Positive operating cash flow indicates the company's ability to generate cash from its core operations, supporting ongoing business activities and investments.

Negative Factors

Revenue Decline

A decline in revenue suggests potential challenges in market demand or competitive pressures, which may impact long-term growth prospects if not addressed.

Free Cash Flow Decline

A decline in free cash flow can limit the company's ability to invest in growth opportunities and manage financial obligations, impacting future financial flexibility.

Earnings Decline

A significant decline in EPS growth reflects challenges in maintaining profitability, which can affect investor confidence and long-term earnings potential.

Star Paper Mills Ltd. Business Overview & Revenue Model

Company Description

Star Paper Mills Limited manufactures and supplies paper and paper boards in India and internationally. It offers a range of industrial packaging and cultural papers. The company was incorporated in 1936 and is based in Kolkata, India.

How the Company Makes Money

Star Paper Mills Ltd. generates revenue primarily through the sale of its diverse paper products to wholesalers, retailers, and direct customers across different sectors. Key revenue streams include the production and distribution of newsprint and various grades of writing paper, which are sold to publishing houses and educational institutions. Additionally, STARPAPER produces packaging materials that cater to the consumer goods sector. The company may also engage in partnerships with distributors and suppliers to enhance its market reach and product offerings. Factors contributing to its earnings include operational efficiency, product quality, and the ability to adapt to market trends and customer demands.

Star Paper Mills Ltd. Financial Statement Overview

Summary

Star Paper Mills Ltd. demonstrates strong profitability and a robust balance sheet with minimal debt, positioning it well in the industry. However, the recent decline in revenue and free cash flow growth suggests challenges in maintaining growth momentum. The company's financial stability is underpinned by strong equity proportions, though cash flow management requires attention to support future growth.

Income Statement

Star Paper Mills Ltd. shows strong profitability with a gross profit margin of 49.63% and a net profit margin of 9.43% for the latest year. However, revenue has declined by 1.83% compared to the previous year, indicating potential challenges in growth. The EBIT margin stands at 6.98%, and the EBITDA margin is 13.93%, reflecting efficient operational management despite the revenue decrease.

Balance Sheet

The company maintains a solid financial position with a low debt-to-equity ratio of 0.01, indicating minimal leverage. The return on equity (ROE) is 6.04%, which is modest but stable. Furthermore, the equity ratio of 82.78% highlights a strong capitalization structure, ensuring financial stability and low risk.

Cash Flow

Operating cash flow is positive, with an operating cash flow to net income ratio of 0.36, suggesting adequate cash generation. However, the free cash flow has decreased from the previous year, resulting in a negative free cash flow growth rate of -24.49%. The free cash flow to net income ratio is 0.27, indicating some reliance on cash reserves for operations.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.24B	4.36B	4.44B	4.93B	3.31B	2.33B
Gross Profit	2.11B	2.17B	2.38B	1.07B	515.05M	394.16M
EBITDA	608.75M	607.97M	871.83M	891.78M	500.32M	306.95M
Net Income	400.48M	411.46M	640.03M	656.73M	366.48M	175.16M
Balance Sheet
Total Assets	0.00	8.23B	7.90B	7.28B	6.72B	6.50B
Cash, Cash Equivalents and Short-Term Investments	2.19B	2.19B	1.88B	1.68B	987.16M	791.60M
Total Debt	0.00	46.68M	50.05M	1.36M	6.72M	11.89M
Total Liabilities	-6.81B	1.42B	1.42B	1.34B	1.37B	1.48B
Stockholders Equity	6.81B	6.81B	6.47B	5.94B	5.35B	5.02B
Cash Flow
Free Cash Flow	0.00	110.57M	146.45M	420.19M	163.47M	223.86M
Operating Cash Flow	0.00	148.39M	258.38M	467.66M	186.72M	285.44M
Investing Cash Flow	0.00	44.83M	-94.84M	-411.24M	-134.56M	-252.40M
Financing Cash Flow	0.00	-75.39M	-89.58M	-65.03M	-48.92M	-49.58M

Star Paper Mills Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 162.50
• 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:STARPAPER, the sentiment is Negative. The current price of 162.5 is below the 20-day moving average (MA) of 163.07, below the 50-day MA of 164.60, and below the 200-day MA of 167.48, indicating a bearish trend. The MACD of -0.92 indicates Negative momentum. The RSI at 47.19 is Neutral, neither overbought nor oversold. The STOCH value of 74.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:STARPAPER.

Star Paper Mills Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STARPAPER	74 Outperform	₹2.55B	6.58	―	2.15%	-5.21%	-32.96%
RUCHIRA	68 Neutral	₹3.61B	5.35	―	4.14%	2.56%	36.81%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
GENUSPAPER	50 Neutral	₹3.36B	48.13	―	―	23.58%	154.81%
MALUPAPER	45 Neutral	₹602.19M	-3.30	―	―	18.31%	-251.78%
BALKRISHNA	42 Neutral	₹596.71M	36.80	―	―	19.95%	―

Star Paper Mills Ltd. Corporate Events

Star Paper Mills Announces Financial Results and Special Resolution Voting

Star Paper Mills Limited has announced the publication of its financial results for the quarter and half-year ending September 30, 2025. The company has informed its stakeholders about the electronic voting process for a special resolution through a postal ballot, facilitated by KFin Technologies Limited. The results of the postal ballot will be announced on or before December 15, 2025, and will be available on the company’s website and communicated to stock exchanges.