Tamil Nadu Newsprint & Papers Ltd. (TNPL) AI Stock Analysis

• Market Cap: ₹9.22B
• Dividend Yield: 2.08%
• Average Volume (3M): 40.50K
• Price to Earnings (P/E): 31.2
• Beta (1Y): 1.15
• Revenue Growth: 4.65%
• EPS Growth: -127.24%
• Country: IN
• Employees: 3,232
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 0.98
• Shares Outstanding: 69,210,600
• 10 Day Avg. Volume: 5,503
• 30 Day Avg. Volume: 40,503
• PEG Ratio: -2.48
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 2.29
• 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: ₹146.00 ▲(0.45% Upside)

The score is primarily supported by moderate financial performance, led by strong operating cash flow and positive free cash flow, but is held back by inconsistent net profitability and balance-sheet equity deterioration. Technicals are neutral-to-weak with the stock below key longer-term moving averages and a negative MACD, while valuation is constrained by a negative P/E despite a modest dividend yield.

Positive Factors

Operational Cash Flow

TNPL's strong operating cash generation and positive free cash flow provide a durable funding source for working capital, maintenance capex, and debt servicing. Persistent OCF reduces reliance on external financing and supports steady operational continuity and strategic reinvestment over months.

Margin Structure

Sustained positive gross margins and healthy EBITDA margins reflect efficient pulp and paper operations and cost control. These structural margins help absorb input-cost variability, preserve cash generation through cycles, and underpin longer-term competitiveness in commodity-sensitive markets.

Balanced Leverage

A moderate debt-to-equity profile indicates TNPL maintains measured leverage, giving financial flexibility to fund capex and operations while keeping interest burdens manageable. This capital structure supports solvency and strategic options without excessive refinancing risk over the medium term.

Negative Factors

Net Profitability

Inconsistent and declining net margins reduce retained earnings and constrain the firm's ability to self-fund growth or sustain dividends. Persistent weakness at the bottom line increases sensitivity to cost shocks and limits buffer against slower demand, impairing long-term financial resilience.

Equity Ratio Decline

A falling equity ratio signals erosion of the capital base and greater dependence on liabilities. Over time this raises financial risk, limits borrowing headroom, and can increase cost of capital, reducing ability to pursue investments or absorb downturns without deleveraging actions.

Revenue & EPS Volatility

Sharp EPS contraction and volatile revenue trends point to earnings instability that undermines forecastability and planning. Such swings compromise capital allocation, increase refinancing and operational risks, and make it harder to sustain multi-month investments or long-term contracts reliably.

Tamil Nadu Newsprint & Papers Ltd. Business Overview & Revenue Model

Company Description

Tamil Nadu Newsprint and Papers Limited manufactures and markets paper and paper boards in India. It operates through Paper & Paper Board, Energy, and Cement segments. The company offers surface-sized and non-surface sized papers for printing and writing; and coated and uncoated boards under the AURA brand for the packing industry. It also generates power through TGs and windmills. In addition, the company manufactures and sells cement, such as Portland pozzolana cement and ordinary Portland cement. It exports its products to Sri Lanka, Iran, Nigeria, Sudan, Uganda, Turkey, Kenya, South Africa, Malaysia, and Ghana. The company was incorporated in 1979 and is based in Chennai, India.

How the Company Makes Money

TNPL generates revenue primarily through the sale of its paper products, including newsprint and various grades of writing and printing paper. The company has established a strong market presence, allowing it to sell its products to a wide range of customers, including publishers, educational institutions, and packaging companies. Key revenue streams include the direct sale of paper products, which accounts for the majority of its income, as well as the sale of by-products from its manufacturing processes, such as pulp and waste paper. TNPL also benefits from partnerships with various distributors and retailers, enhancing its market reach. Additionally, the company emphasizes sustainable practices, which not only align with global environmental standards but also appeal to a growing consumer base that prioritizes eco-friendly products, further contributing to its revenue growth.

Tamil Nadu Newsprint & Papers Ltd. Financial Statement Overview

Summary

Moderate fundamentals overall: income statement shows stable gross/EBITDA margins but inconsistent net profitability and a revenue drop in 2025; balance sheet indicates manageable leverage but weakening equity ratio and uneven ROE; cash flow is the bright spot with strong operating cash flow and positive free cash flow supporting resilience.

Income Statement

TNPL shows moderate financial performance in recent years. Gross profit margin has fluctuated but remains positive, indicating efficient cost management. However, net profit margin has been inconsistent due to varying net income, with a noticeable decline in the latest year. Revenue growth shows volatility, with a significant drop in 2025. EBITDA margin remains healthy, supporting operational efficiency. Overall, the income statement highlights stability in gross margins but challenges in net profitability.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio, indicating a balanced use of debt and equity financing. However, the decline in equity ratio suggests increasing reliance on liabilities over time. Return on Equity (ROE) has been inconsistent, reflecting fluctuating net income levels. Despite manageable leverage, the company faces challenges with equity stability and profitability.

Cash Flow

TNPL's cash flow statement demonstrates strong operational cash flow, supporting positive free cash flow even during challenging financial periods. The operating cash flow to net income ratio indicates efficient cash generation relative to accounting profits. Free cash flow growth has been volatile, but the company maintains a positive cash flow trajectory, highlighting effective capital expenditure management and operational resilience.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	44.81B	44.91B	46.93B	51.80B	40.20B	27.68B
Gross Profit	18.73B	12.12B	15.32B	10.98B	9.72B	8.00B
EBITDA	4.20B	4.28B	8.06B	10.48B	3.93B	3.18B
Net Income	-255.90M	37.30M	2.08B	3.88B	143.32M	-651.11M
Balance Sheet
Total Assets	0.00	58.83B	60.45B	61.23B	57.74B	59.83B
Cash, Cash Equivalents and Short-Term Investments	259.00M	259.00M	471.31M	1.15B	124.62M	105.53M
Total Debt	0.00	16.04B	18.01B	18.71B	22.39B	27.33B
Total Liabilities	-20.87B	37.96B	39.55B	41.79B	41.85B	43.87B
Stockholders Equity	20.87B	20.87B	20.90B	19.44B	15.89B	15.97B
Cash Flow
Free Cash Flow	0.00	3.96B	2.77B	6.99B	7.54B	-2.62B
Operating Cash Flow	0.00	5.70B	4.19B	8.06B	11.11B	4.23B
Investing Cash Flow	0.00	-1.62B	-1.36B	-1.01B	-3.53B	-6.82B
Financing Cash Flow	0.00	-4.93B	-2.70B	-6.52B	-7.60B	3.33B

Tamil Nadu Newsprint & Papers Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 145.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TNPL, the sentiment is Negative. The current price of 145.35 is above the 20-day moving average (MA) of 137.54, above the 50-day MA of 140.85, and below the 200-day MA of 151.52, indicating a bearish trend. The MACD of -2.56 indicates Positive momentum. The RSI at 41.44 is Neutral, neither overbought nor oversold. The STOCH value of 39.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:TNPL.

Tamil Nadu Newsprint & Papers Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RUCHIRA	68 Neutral	₹3.46B	5.12	―	4.14%	2.56%	36.81%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
KUANTUM	60 Neutral	₹7.41B	11.41	―	3.24%	-9.47%	-54.96%
TNPL	58 Neutral	₹9.22B	31.15	―	2.08%	4.65%	-127.24%
SESHAPAPER	58 Neutral	₹14.20B	16.23	―	1.03%	-9.17%	-57.37%
ANDHRAPAP	54 Neutral	₹12.88B	62.67	―	1.48%	-2.55%	-89.20%
RAMANEWS	44 Neutral	₹4.47B	-4.20	―	―	―	―

Tamil Nadu Newsprint & Papers Ltd. Corporate Events

TNPL Files Quarterly Integrated Governance Report, Confirms Stable Compliance Profile

Tamil Nadu Newsprint & Papers Ltd. has filed its integrated corporate governance report for the quarter ended 31 December 2025, confirming applicability of SEBI’s latest requirements on corporate governance compliance, investor grievance redressal and disclosure of fines or penalties. The company reported that it has not acquired shares or voting rights in any unlisted company during the quarter, and there were no updates on ongoing tax litigations or disputes, while its board continues to function with a regular, non-related chairperson who also serves as managing director and a mix of nominee and independent directors, underscoring regulatory compliance and governance stability for stakeholders.

TNPL Files SEBI Regulation 74(5) Compliance Certificate for December 2025 Quarter

Tamil Nadu Newsprint & Papers Limited has submitted to the stock exchanges a compliance certificate under Regulation 74(5) of the SEBI (Depository and Participants) Regulations, 2018 for the quarter ended 31 December 2025. The certificate, issued by its registrar and share transfer agent Cameo Corporate Services Limited, confirms regulatory compliance in handling securities held in depository form, underscoring TNPL’s adherence to capital market norms and providing assurance to investors and other market participants about its governance and reporting practices.

Tamil Nadu Newsprint & Papers Limited Appoints New Independent Director

Tamil Nadu Newsprint & Papers Limited has announced the appointment of Thiru Mathew Thomas as an Independent Director, following approval by the company’s shareholders through a postal ballot. This strategic appointment is expected to strengthen the company’s governance and potentially enhance its market positioning.