Pudumjee Paper Products Limited is a leading manufacturer of specialty paper for wrapping, food-grade packaging, household, and sanitary applications. Let's dive into the company's financial performance based on the information provided.
Quarterly Results:
Annual Financials:
Technical Analysis:
From a technical perspective, the stock of Pudumjee Paper Products Limited has been on a downward trend, which could present an attractive entry point for investors. The stock is currently trading around Rs. 90, which is significantly lower than its 52-week high of Rs. 130. However, it is important to note that the stock is unlikely to fall below Rs. 80, as it has strong support at this level.
Conclusion:
Pudumjee Paper Products Limited appears to be a financially sound company with a promising outlook. The company's consistent revenue growth, improving profitability, and efficient capital management make it an attractive investment opportunity. From a technical standpoint, the current stock price presents a favorable entry point for investors, with the stock unlikely to fall below the Rs. 80 support level.
Quarterly Results:
- The company has shown consistent growth in sales, with revenue increasing from Rs. 148 crores in Q1 FY2021 to Rs. 205 crores in Q4 FY2024 (projected).
- Operating profit margins (OPM) have fluctuated between 9% to 24% during the period, with the highest OPM of 24% projected for Q4 FY2024.
- Net profit has also shown a similar trend, with the company expected to report a net profit of Rs. 37 crores in Q4 FY2024, up from Rs. 2 crores in Q4 FY2022.
- The company's earnings per share (EPS) is expected to grow from Rs. 0.20 in Q4 FY2022 to Rs. 3.94 in Q4 FY2024, indicating a strong improvement in profitability.
Annual Financials:
- The company's annual sales have grown from Rs. 469 crores in FY2016 to a projected Rs. 785 crores in FY2024, a CAGR of around 6.7%.
- Operating profit margins have improved from 6% in FY2016 to a projected 17% in FY2024, showcasing the company's ability to manage costs effectively.
- Net profit has grown from Rs. 10 crores in FY2016 to a projected Rs. 98 crores in FY2024, a CAGR of around 27.5%.
- The company's return on capital employed (ROCE) has remained in the range of 14-18%, indicating efficient utilization of its assets.
- Balance Sheet and Cash Flows:
- The company's balance sheet appears strong, with a healthy mix of equity, reserves, and manageable borrowings.
- The company's cash flow from operating activities has been positive, with a projected cash flow of Rs. 133 crores in FY2024.
- The company's working capital management has improved, with the cash conversion cycle reducing from 77 days in FY2015 to a projected 81 days in FY2024.
Technical Analysis:
From a technical perspective, the stock of Pudumjee Paper Products Limited has been on a downward trend, which could present an attractive entry point for investors. The stock is currently trading around Rs. 90, which is significantly lower than its 52-week high of Rs. 130. However, it is important to note that the stock is unlikely to fall below Rs. 80, as it has strong support at this level.
Conclusion:
Pudumjee Paper Products Limited appears to be a financially sound company with a promising outlook. The company's consistent revenue growth, improving profitability, and efficient capital management make it an attractive investment opportunity. From a technical standpoint, the current stock price presents a favorable entry point for investors, with the stock unlikely to fall below the Rs. 80 support level.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.