Sundaram Multi Pap Limited (SUNDARAM) AI Stock Analysis

• Market Cap: ₹573.39M
• Dividend Yield: N/A
• Average Volume (3M): 120.28K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 1.25
• Revenue Growth: -0.92%
• EPS Growth: 9.65%
• Country: IN
• Employees: 302
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 0.03
• Shares Outstanding: 473,877,780
• 10 Day Avg. Volume: 185,183
• 30 Day Avg. Volume: 120,275
• PEG Ratio: 0.00
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 0.74
• P/FCF Ratio: 13.72
• 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: 55 Neutral
• Price Target: ₹1.50 ▼(-16.20% Downside)
• Action: Reiterated Date: 03/20/26
• Date: Action: Reiterated 03/20/26

The score is primarily supported by a stable balance sheet and positive cash flow, but is materially constrained by negative profitability and a clear bearish technical setup (below major moving averages with negative MACD). Valuation is moderate and does not materially offset the fundamental and momentum concerns.

Positive Factors

Balance-sheet strength

A 72% equity ratio signals durable financial stability and a low reliance on creditors. This provides capacity to withstand cyclical downturns, fund capex or working capital from internal resources, and reduces refinancing risk over the next several quarters.

Positive cash generation

Rising operating cash flow and positive free cash flow indicate the core business converts revenue to cash effectively. That cash buffer supports operations, deleveraging or targeted reinvestment even while accounting profits are negative, preserving optionality.

Improving gross margins

An improving gross margin to 26.63% suggests better cost control or pricing power at the production level. Sustained gross margin improvements can support operating leverage once SG&A is managed, aiding durable profit recovery over months.

Negative Factors

Negative profitability

Negative EBIT and net income indicate the business currently fails to cover operating costs on an accounting basis. If sustained, this erodes retained earnings, constrains reinvestment and may force cost cuts or strategic shifts to restore long-term profitability.

Modest revenue growth

Very low top-line growth limits scope for scaling fixed-cost absorption and margin recovery. Without meaningful revenue expansion over the coming quarters, operational improvements may not translate into consistent profitable results or stronger market positioning.

Moderate leverage risk

A 0.31 debt/equity ratio is moderate but, combined with recurring losses, raises refinancing and interest coverage risk. If earnings remain negative, leverage could limit strategic flexibility and increase vulnerability to rate shocks over the medium term.

Sundaram Multi Pap Limited Business Overview & Revenue Model

Company Description

Sundaram Multi Pap Limited designs, manufactures, and markets paper stationery products for students in India. It offers exercise note, long, scrap, drawing, graph, A4/A5/A3, college, hard bound, sketch, lekhan, practical, laboratory, pocket, six subject, answer, duplicate, cash memo, challan, and voucher books. The company also provides conference pads; graph and map, answer, origami paper, and tinted sheets; office/corporate stationery products; and printing, writing, and packaging papers. In addition, it offers digital educational content for the students of Maharashtra State Board's 1st to 10th standards for various subjects available in English, Marathi, Semi English, Hindi, and Urdu medium as per the syllabus. The company markets and sells its products primarily under the Sundaram brand. It also exports its products. Sundaram Multi Pap Limited was incorporated in 1985 and is based in Mumbai, India.

How the Company Makes Money

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Sundaram Multi Pap Limited Financial Statement Overview

Summary

Balance sheet strength (72% equity ratio) and improving/positive operating and free cash flow support stability, but overall performance is held back by declining profitability with negative EBIT and net income and only modest revenue growth (+0.29%).

Income Statement

The company shows a declining trend in profitability, with a negative EBIT and net income in the latest year. Gross profit margin has improved to 26.63%, but net profit margin remains negative at -4.02%. Revenue growth is modest with a 0.29% increase from the previous year, indicating challenges in revenue expansion.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 72.00%, suggesting financial stability. However, the debt-to-equity ratio of 0.31 indicates moderate leverage, which could be a concern if profitability does not improve.

Cash Flow

Operating cash flow has increased, reflecting better cash management. The free cash flow to net income ratio is not calculable due to negative net income, but free cash flow remains positive, indicating adequate liquidity.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.28B	1.27B	1.27B	1.14B	703.58M	505.92M
Gross Profit	293.21M	339.35M	209.04M	284.71M	235.39M	101.16M
EBITDA	32.64M	18.91M	27.23M	103.34M	132.61M	9.98M
Net Income	-31.52M	-51.21M	-50.82M	25.89M	39.11M	-88.35M
Balance Sheet
Total Assets	1.00B	1.22B	1.35B	1.38B	1.46B	1.48B
Cash, Cash Equivalents and Short-Term Investments	168.07M	211.03M	2.23M	26.04M	3.63M	4.47M
Total Debt	211.52M	268.68M	333.90M	346.19M	393.68M	446.90M
Total Liabilities	319.38M	340.64M	419.45M	403.71M	510.26M	567.60M
Stockholders Equity	684.88M	875.38M	926.31M	977.03M	949.81M	909.22M
Cash Flow
Free Cash Flow	-66.30M	68.89M	34.87M	108.36M	49.50M	52.54M
Operating Cash Flow	-66.30M	68.89M	54.07M	113.52M	54.06M	55.90M
Investing Cash Flow	9.13M	161.21M	-19.35M	-5.78M	-3.18M	19.99M
Financing Cash Flow	-62.17M	-90.21M	-57.84M	-86.03M	-50.97M	-80.95M

Sundaram Multi Pap Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.79
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SUNDARAM, the sentiment is Negative. The current price of 1.79 is above the 20-day moving average (MA) of 1.39, above the 50-day MA of 1.56, and below the 200-day MA of 1.87, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 27.74 is Positive, neither overbought nor oversold. The STOCH value of 22.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SUNDARAM.

Sundaram Multi Pap Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SPLIL	57 Neutral	₹751.10M	10.21	―	―	―	―
SUNDARAM	55 Neutral	₹573.39M	13.24	―	―	-0.92%	9.65%
PRITI	49 Neutral	₹506.49M	106.63	―	―	―	―
FCONSUMER	37 Underperform	₹678.99M	-0.77	―	―	11.54%	34.32%