Shree Krishna Paper Mills & Industries Limited

Basic Materials — Paper & Paper Products · BSE

₹90.54−₹4.76 (−4.99%)

DalalBaazaar Score

68 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

The 60-second version of Shree Krishna Paper Mills & Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Shree Krishna Paper Mills & Industries Limited engages in the manufacture and sale of paper and paper products in India and internationally.

IndustryPaper & Paper Products

SectorBasic Materials

Employees284

Annual revenue₹227 Cr

How does it make money?

Turns over ₹227 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 284 employees supports ₹79.8 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹79.8 lakh

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, ULTRATECH CEMENT LIMITED, ASIAN PAINTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 38.5% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE22.3%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +29% while net margin moved +20% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+29%

Margin effect+20%

DalalBaazaar Score

68/ 100

Good

Weighted across six categories. Every point is explained below.

• Beta of 0.85 — moves roughly with the market
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

70/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

81/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

4.9x

3Y Median

108.9x

40 monthly readings · mean 86.0x · range 2.7x–191.0x

Sector Median

28.7x

median of 4 sector peers

🟢Current valuation is approximately 95% below its 3y median of 108.9x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 83% below the peer median of 28.7x.

vs. its own history

Cheap

108.9x median over 40 months · -95%

vs. sector peers

Cheap

28.7x median of 4 peers · -83%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

14.3x

PEG

0.31

What's Good / What's Bad

🟢 What's Going Well2

High return on capital employed
ROCE of 38.5% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Margins are compressing
EBITDA margin has slipped from 6.6% to 5.1% over 3 years.
Return on capital is falling
ROCE has declined from 43.6% to 38.5% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 2 high · 3 watch

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Receivables growing faster than salesFinancial
Receivables up 121% against revenue up 29% — sales are being booked faster than they are collected.
🟡Debt is increasingFinancial
Total debt is up 47% over 3 years.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹10 Cr in the latest year.
🟡Inventory building faster than salesFinancial
Inventory up 85% against revenue up 29% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 38.5% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Priced below its own history
The stock trades 95% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 83% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 6.6% to 5.1%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 3.7x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 121% against revenue up 29%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 3%✓ 5.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 3.7x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹10 Cr
Profit that never becomes cash eventually stops being profit.
4Revenue growth stays above 7% a year✓ 8.8% CAGR
Latest reported year was 7.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5ROCE stays above 35%✓ 38.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 11 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 5 neutral · 1 weak

Market Cap

₹122 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

4.9x

Cheap

Cheap against the generic band

P/B Ratio

2.32x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹18.45

Profitable

Profitable on a per-share basis

ROE

36.8%

Strong

Strong capital efficiency

ROCE

38.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.79x

Moderate

Moderate leverage

Revenue Growth (YoY)

7.6%

Modest

Modest growth

Profit Growth (YoY)

626.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹10 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

1.9%

Weak

Thin margins leave little room for error

Net Margin

10.7%

Good

Strong bottom-line conversion

Current Ratio

1.38

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.85

Market-like

Moves roughly in line with the market

52W Range Position

25%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

96.2 / 96.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

44.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹176 Cr	₹143 Cr	₹168 Cr	₹227 Cr	+8.8%
EBITDA	₹12 Cr	₹8 Cr	₹9 Cr	₹11 Cr	-0.4%
EBITDA Margin	6.6%	5.4%	5.2%	5.1%	—
PAT (Net Profit)	₹13 Cr	₹0 Cr	₹1 Cr	₹19 Cr	+15.7%
EPS	₹9.29	₹0.28	₹0.83	₹14.38	+15.7%
ROE	38.9%	1.2%	3.3%	36.8%	—
ROCE	43.6%	7.8%	10.0%	38.5%	—
Total Debt	₹29 Cr	₹26 Cr	₹32 Cr	₹42 Cr	+13.6%
Free Cash Flow	₹2 Cr	₹6 Cr	-₹3 Cr	-₹10 Cr	—

🟢 Revenue has grown at 8.8% a year over 3 years.

🟡 EBITDA has been broadly flat over 3 years (-0.4% a year).

🔴 EBITDA Margin has fallen from 6.6% to 5.1% over 3 years (-1.5 pts).

🟢 PAT (Net Profit) has grown at 15.7% a year over 3 years.

🟢 EPS has grown at 15.7% a year over 3 years.

🔴 ROE has fallen from 38.9% to 36.8% over 3 years (-2.1 pts).

🔴 ROCE has fallen from 43.6% to 38.5% over 3 years (-5.1 pts).

🔴 Total Debt has grown at 13.6% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹2 Cr to -₹10 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹137 Cr

Total Liabilities

₹84 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹0 Cr

Capex

-₹10 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

94.2%

Corporate Actions

Ex-Dividend Date

30 Aug 2002

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
ULTRATECH CEMENT LIMITED	37.6x	11.1%
ASIAN PAINTS LIMITED	46.9x	22.3%

Recent News

1 positive5 general

Shree Krishna Paper Mills & Industries Upper Circuit Today

Univest, 12 Oct

Shree Krishna Paper Mills & Industries Lower Circuit Today

Univest, 07 Oct

Shree Krishna Paper Mills Q1 Results: Net profit up 622% YoY to ₹6.38 crore

scanx.trade, 13 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Only Sellers BSE: Check Out the Lower Circuit Stocks in BSE Today

Livemint, 16 Oct

Top 15 Low-Price Stocks In India To Buy In October 2026

Samco, 17 Oct

Paper and paperboard prices in India — 16th update of 21 September 2026 in New Delhi

Indian Printer & Publisher, 21 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongGrowth · Profitability · Valuation

MiddlingBusiness Quality · Financial Health

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 2 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive · see Key things to watch ↑