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

• Market Cap: ₹10.37B
• Dividend Yield: 2%
• Average Volume (3M): 43.89K
• Price to Earnings (P/E): 310.8
• Beta (1Y): 1.06
• Revenue Growth: -0.66%
• EPS Growth: -125.23%
• Country: IN
• Employees: 3,232
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): -1.07
• Shares Outstanding: 69,210,600
• 10 Day Avg. Volume: 11,188
• 30 Day Avg. Volume: 43,888
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹162.00
• Price Target Upside: 8.11% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: ₹162.00 ▲(8.11% Upside)

The overall stock score of Tamil Nadu Newsprint & Papers Ltd. is primarily influenced by its mixed financial performance and challenging valuation metrics. The company's strong operational cash flow provides a solid foundation, but the negative P/E ratio and modest dividend yield raise concerns. Technical analysis shows potential for a rebound, but current momentum is weak. Investors should be cautious and consider the company's ability to improve profitability and stabilize its financial position.

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 through the production and sale of various paper products, including newsprint, printing, and writing paper. The company operates a vertically integrated business model, sourcing raw materials such as bagasse from sugar mills, which reduces dependency on wood-based raw materials. TNPL's primary revenue streams come from domestic sales across India and export sales to international markets. Additionally, the company benefits from government subsidies and incentives due to its use of environmentally friendly production methods. Strategic partnerships with sugar mills and other suppliers ensure a steady supply of raw materials, contributing to cost efficiency and competitive pricing in the market.

Tamil Nadu Newsprint & Papers Ltd. Financial Statement Overview

Summary

Tamil Nadu Newsprint & Papers Ltd. exhibits a mixed financial performance. The income statement reflects stable operational margins but challenges in sustaining net profitability. The balance sheet suggests a balanced capital structure, with room for improvement in equity stability. Cash flow analysis indicates strong operational cash generation, providing a solid foundation for future growth. The company needs to focus on enhancing net profitability and maintaining healthy cash flow to strengthen its financial position.

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 2023	Dec 2023	Dec 2021	Dec 2020
Income Statement
Total Revenue	44.70B	44.91B	51.80B	46.93B	39.71B	34.40B
Gross Profit	16.86B	12.12B	10.98B	15.32B	3.71B	5.61B
EBITDA	4.67B	4.28B	10.48B	8.06B	3.93B	6.26B
Net Income	37.30M	37.30M	3.88B	2.08B	143.32M	1.30B
Balance Sheet
Total Assets	58.83B	58.83B	61.23B	60.45B	57.74B	55.77B
Cash, Cash Equivalents and Short-Term Investments	259.00M	259.00M	1.15B	471.31M	124.62M	44.10M
Total Debt	16.04B	16.04B	18.71B	18.01B	22.39B	22.05B
Total Liabilities	37.96B	37.96B	41.79B	39.55B	41.85B	38.64B
Stockholders Equity	20.87B	20.87B	19.44B	20.90B	15.89B	17.13B
Cash Flow
Free Cash Flow	0.00	3.96B	6.99B	2.77B	7.54B	276.16M
Operating Cash Flow	0.00	5.70B	8.06B	4.19B	11.11B	2.41B
Investing Cash Flow	0.00	-1.62B	-1.01B	-1.36B	-3.53B	-2.07B
Financing Cash Flow	0.00	-4.93B	-6.52B	-2.70B	-7.60B	-357.54M

Tamil Nadu Newsprint & Papers Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 149.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 149.85 is below the 20-day moving average (MA) of 158.64, below the 50-day MA of 158.04, and below the 200-day MA of 155.36, indicating a bearish trend. The MACD of -1.50 indicates Positive momentum. The RSI at 32.10 is Neutral, neither overbought nor oversold. The STOCH value of 11.95 is Positive, 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	75 Outperform	₹4.23B	6.08	14.44%	3.53%	1.65%	64.71%
KUANTUM	68 Neutral	₹9.70B	10.89	9.50%	2.70%	-11.03%	-43.24%
ANDHRAPAP	61 Neutral	₹15.11B	18.30	4.58%	1.31%	-1.23%	-66.84%
SESHAPAPER	59 Neutral	₹15.86B	17.28	5.49%	0.99%	-4.45%	-62.88%
TNPL	54 Neutral	₹10.37B	310.83	―	2.00%	-0.66%	-125.23%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Tamil Nadu Newsprint & Papers Ltd. Corporate Events

TNPL Announces Postal Ballot for Director Re-Appointment

Tamil Nadu Newsprint & Papers Ltd. has announced a postal ballot to seek shareholder approval for the re-appointment of Dr. N Sundaradevan as an Independent Director. This move, part of the company’s governance strategy, will ensure continuity in leadership and potentially strengthen its position in the eco-friendly paper industry.