Seshasayee Paper and Boards
Seshasayee Paper and Boards Limited (SPB) is a flagship company of Esvin Group. It operates an integrated pulp, paper and paper board mill at Pallipalayam, Erode in Tamil Nadu. The company’s product range includes printing and writing papers, packing and wrapping papers and specialty papers. The current installed capacity of the company stands at 1,15,000 tonnes per annum. SPB'S exports are nearly 20 per cent of its production and is a significant exporter in the Indian paper industry
On the financial front, SPB posted a 1.22 per cent increase in its revenue to 251.78 crore in Q1FY18 from 248.74 crore in Q1FY17. However, the company’s PBDT declined 2.85 per cent to 37.15 crore in the first quarter of FY18 on a yearly basis. The company’s net profit declined 9.8 per cent to
21.75 crore for the corresponding period.
On an annual basis, the company’s revenue rose 15.74 per cent to 1,193.87 crore in FY17, as compared to the previous fiscal. The company’s PBDT rose by 153.2 per cent to 200.18 crore in FY17 on a yearly basis. The company’s net profit rose tremendously from 35.58 crore in FY16 to 128.85 crore in FY17. The company’s PE stood at 7.31x, whereas its peers Emami Paper Mills and Kuantum Papers PE stood at 50.55x and 8.37x, respectively.
The company had good and consistent profit growth of 30.45 per cent over the last five years. Also, the company has considerably reduced its debt. We expect the stock price of SPB to soar.