West Coast Paper Mills Limited (WSTCSTPAPR) AI Stock Analysis

• Market Cap: ₹28.73B
• Dividend Yield: 1.18%
• Average Volume (3M): 1.85K
• Price to Earnings (P/E): 25.3
• Beta (1Y): 1.01
• Revenue Growth: -1.59%
• EPS Growth: -60.74%
• Country: IN
• Employees: 2,420
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 4.07
• Shares Outstanding: 66,048,904
• 10 Day Avg. Volume: 2,017
• 30 Day Avg. Volume: 1,849
• PEG Ratio: -0.17
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.67
• P/FCF Ratio: -8.22
• 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: 60 Neutral
• Price Target: ₹400.00 ▼(-4.67% Downside)
• Action: Reiterated Date: 11/18/25
• Date: Action: Reiterated 11/18/25

West Coast Paper Mills Limited's overall stock score is primarily influenced by its financial performance, which shows strong operational efficiency but is offset by declining profitability and cash flow issues. Technical analysis indicates bearish momentum, further impacting the score. Valuation is fair, but not compelling enough to offset other concerns.

Positive Factors

Vertical integration

Integrated pulp and paper manufacturing creates a durable cost and supply advantage versus non-integrated peers. Owning upstream pulp reduces exposure to third‑party fiber price swings, supports consistent input availability, and helps sustain unit margins and competitiveness over quarters.

Strong operating margins

High gross, EBIT and EBITDA margins reflect effective manufacturing scale, pricing or cost controls. These operating efficiencies offer a buffer to absorb input cost volatility, enable reinvestment, and support long‑term profitability if maintained through steady utilization and product mix.

Low leverage

Very low leverage and a strong equity ratio provide financial flexibility to fund capex, absorb cyclical downturns, and pursue strategic initiatives without pressuring cash flow. This capital structure reduces insolvency risk and supports sustainable operations over multiple quarters.

Negative Factors

Falling net margins

A sharp drop in net margin halves the conversion of operating profitability into shareholder returns. If structural (pricing pressure, higher non‑operating costs), this reduces retained earnings and reinvestment capacity, undermining long‑term earnings resilience and ROE.

Negative free cash flow

A swing to materially negative FCF signals weakening cash generation versus earnings. Persistent negative FCF limits the company's ability to fund maintenance capex, service obligations, or pay dividends without external financing, raising structural liquidity and funding risk.

Declining return on equity

A pronounced fall in ROE signals reduced efficiency in converting equity into profits. Over months, lower ROE can constrain investor confidence and leave less internal capital for growth, indicating structural weakness in profitability or capital allocation effectiveness.

West Coast Paper Mills Limited Business Overview & Revenue Model

Company Description

West Coast Paper Mills Limited produces and sells pulp, paper, and paper boards in India. It operates through two segments, Paper/Paperboard and Telecommunication Cables. The company provides printing and writing paper, machine-glazed paper and boards, security and hi-value grades paper, cup stock and coated duplex boards, and business stationery products, as well as premium printing paper under the WESCO brand. It is also involved in the production and sale of optical fiber cables; and wind power generation business. The company exports its paper products to the Asia Pacific, the Middle East, the Mediterranean, and the African subcontinents. West Coast Paper Mills Limited was incorporated in 1955 and is based in Kolkata, India.

How the Company Makes Money

West Coast Paper Mills generates revenue primarily through the sale of its diverse range of paper products, which include writing and printing papers, kraft papers, and specialty papers tailored for various applications. The company benefits from multiple revenue streams, including direct sales to consumers, B2B sales to corporations, and exports to international markets. Additionally, West Coast Paper Mills engages in strategic partnerships with suppliers and distributors to enhance its market reach and distribution capabilities. Factors contributing to its earnings include the growing demand for paper products in education and packaging sectors, a focus on innovation and product development, and an increasing emphasis on sustainable practices that resonate with environmentally conscious consumers.

West Coast Paper Mills Limited Financial Statement Overview

Summary

West Coast Paper Mills Limited shows resilience in operational efficiency and capital structure, with strong EBIT and EBITDA margins and a low debt-to-equity ratio. However, declining net profit margins, negative free cash flow, and reduced return on equity highlight areas of concern. The company must address profitability and cash flow management to sustain growth and maintain financial health.

Income Statement

West Coast Paper Mills Limited shows a mixed performance in recent years. The TTM gross profit margin stands at 34.95%, which is relatively healthy. However, the net profit margin has declined significantly to 7.28% from 15.65% in the previous year, indicating profitability concerns. Revenue growth has fluctuated, with a recent drop of 3.38% compared to the previous year. The EBIT and EBITDA margins are strong at 25.65% and 16.19%, respectively, suggesting effective operational management despite falling net margins.

Balance Sheet

The company maintains a strong equity position, with a debt-to-equity ratio of 0.13, indicating low leverage. Return on equity has decreased to 8.91% from 21.35%, reflecting a downturn in profitability. The equity ratio is robust at 63.34%, showcasing financial stability and a strong capital structure.

Cash Flow

Cash flow analysis reveals challenges, as free cash flow turned negative at -3,477 million from a positive 2,394 million last year, leading to a concerning free cash flow growth rate. The operating cash flow to net income ratio is 0.32, showing potential liquidity issues. Additionally, the free cash flow to net income ratio indicates that cash generation from operations is not adequately covering net income.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	40.55B	42.73B	44.48B	48.95B	33.78B	22.45B
Gross Profit	11.52B	14.93B	21.98B	28.79B	15.42B	1.33B
EBITDA	4.74B	6.92B	12.62B	17.04B	6.96B	2.70B
Net Income	1.80B	3.11B	6.92B	9.42B	3.07B	-31.04M
Balance Sheet
Total Assets	55.76B	55.12B	51.18B	41.83B	33.43B	31.37B
Cash, Cash Equivalents and Short-Term Investments	13.49B	12.31B	14.02B	11.07B	3.87B	1.98B
Total Debt	4.63B	4.56B	2.76B	2.31B	4.78B	6.76B
Total Liabilities	14.62B	14.42B	13.08B	11.19B	13.08B	14.33B
Stockholders Equity	35.39B	34.91B	32.42B	25.81B	16.86B	13.89B
Cash Flow
Free Cash Flow	1.40B	-3.48B	2.43B	10.75B	5.28B	2.64B
Operating Cash Flow	3.02B	992.17M	7.64B	12.38B	5.91B	3.38B
Investing Cash Flow	-2.48B	-1.72B	-7.14B	-8.94B	-2.89B	-1.66B
Financing Cash Flow	-658.43M	721.49M	-609.07M	-3.34B	-2.95B	-1.67B

West Coast Paper Mills Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 419.60
• 50DMA: Positive
• 100DMA: Positive
• 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:WSTCSTPAPR, the sentiment is Positive. The current price of 419.6 is above the 20-day moving average (MA) of 405.35, above the 50-day MA of 411.16, and below the 200-day MA of 459.77, indicating a neutral trend. The MACD of 0.29 indicates Negative momentum. The RSI at 61.48 is Neutral, neither overbought nor oversold. The STOCH value of 89.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:WSTCSTPAPR.

West Coast Paper Mills Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PDMJEPAPER	66 Neutral	₹6.75B	10.91	―	0.62%	-5.63%	-27.65%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
WSTCSTPAPR	60 Neutral	₹28.73B	25.33	―	1.18%	-1.59%	-60.74%
KUANTUM	60 Neutral	₹6.83B	20.52	―	3.24%	-9.47%	-54.96%
SESHAPAPER	58 Neutral	₹16.31B	19.06	―	1.03%	-9.17%	-57.37%
TNPL	58 Neutral	₹8.97B	36.69	―	2.08%	4.65%	-127.24%
ANDHRAPAP	54 Neutral	₹12.09B	33.92	―	1.48%	-2.55%	-89.20%