Kuantum Papers

Kuantum Papers stock analysis

STOCK ANALYSIS

6/20/20253 min read

Kuantum Papers is a company in India that makes paper in a way that is good for the environment. Instead of cutting down trees, they use leftover plants like wheat straw and grasses, as well as wood waste, to make paper. The company started in 1980 in Punjab with the idea of using materials that were usually thrown away or burned, which helped reduce pollution. Today, Kuantum Papers makes many types of paper used for books, notebooks, diaries, and even eco-friendly cups and straws. They focus on saving nature by using clean technology and recycling.

Company Insights
The company has a market capitalization of 977 crores
The share price of the company is 112
The book value of the company is 139
The company's debt-to-equity ratio is 0.54
The company's annual dividend yield is 2.67%
The company's stock P/E is 8.48
The earnings per share are 13.2
The company's ROCE is 11.1%

Financial Report
The company's sales in the last 5 years

Sales in 2021 is 404 crores
Sales in 2022 is 830 crores
Sales in 2023 is 1,310 crores
Sales in 2024 is 1,211 crores
Sales in 2025 is 1,107 crores

The company's profit in the last 5 years
Profit in 2021 is -13 crores
Profit in 2022 is 13 crores
Profit in 2023 is 136 crores
Profit in 2024 is 184 crores
Profit in 2025 is 115 crores

Sales & Profit Growth
The company's sales growth in the last 5 years

Sales growth in the last 5 years is 8.25%
Sales growth in the last 3 years is 10.1%
Sales growth in the last 1 year is -8.61%

The company's profit growth in the last 5 years
Profit growth in the last 5 years is 9.87%
Profit growth in the last 3 years is 104%
Profit growth in the last 1 year is -41.4%

Holdings
Promoters are 70.31%
FIIs are 0.08%
Public are 29.61%

Company News

  • Kuantum Papers, a leading eco-friendly paper manufacturer in India, has recently announced a decline in its financial results for the quarter and full year ending March 2025. The company’s net profit for the March 2025 quarter dropped by 22.93%, reaching Rs 26.12 crore compared to the same period last year. For the entire fiscal year, net profit fell by 37.34%, totaling Rs 115.18 crore.

  • In addition to the profit decline, Kuantum Papers also experienced a decrease in sales. Quarterly sales dropped by approximately 7%, while annual sales fell nearly 9% compared to the previous year. Despite these challenges, the company’s board of directors recommended a final dividend of Rs 3.00 per share, signaling confidence in its long-term prospects.

  • The company’s stock has faced some selling pressure recently, with technical indicators showing a mildly bearish trend. However, analysts note that Kuantum Papers remains undervalued compared to its industry peers, suggesting potential for recovery.

Technical Analysis

Company Chart

Moving Averages (MA)

  • The stock price is going under the 50-MA, which indicates that the stock is in a bearish trend.

  • The stock price is under the 200-MA, which also indicates that the stock is in a bearish trend

Relative Strength Index (RSI)

Currently, the RSI of the company is 34, which indicates that the stock is neither overbought nor oversold.

My Analysis

The company's sales and profits have shown significant growth in the last few years, but right now they are declining. The paper industry has been badly impacted by the cheap imports from China. The stock price is declining due to lower revenue and market uncertainty.