Dashboard/KUANTUM

KUANTUM

FAIRLY_VALUED

Kuantum Papers Limited

Others · NSE

↑ 65.1% vs fair value

52W Low

₹65

+13.1% from low

52W High

₹135

-45.6% from high

News sentiment (1 articles)

0 bull0 neutral1 bear

✦

Analyst Note

2d ago

Kuantum Papers trades at ₹73.5, offering a 67% margin of safety against its ₹210.78 fair value, though medium confidence limits conviction. The stock carries significant headwinds: negative free cash flow of ₹136 Cr, earnings collapsed 53.3% year-on-year, and ROCE has deteriorated to 10.8%. Despite a low valuation with PE of 11.4x and a 4.29% dividend yield, a Piotroski score of 6 and deteriorating profitability quality raise red flags. Sentiment remains uniformly bearish, and the stock sits near 52-week lows at just 7.1% from its floor. Suitable for deep-value investors comfortable with distressed turnaround stories backed by patient capital.

Valuation Gauge

FAIRLY_VALUED+65.1% Margin of Safety

OVERVALUEDFAIRLY VALUEDUNDERVALUED

Current Price

₹74

Fair Value

₹211

Fair Value Analysis

₹211

Based on balance sheet strength analysis and earnings growth potential for Others sector companies | Sector-cheap: P/E at 8th percentile vs sector peers. | CAUTION: ROCE declining (latest 13.2%) — returns on capital are falling; verify this isn't a value trap. | COVID-resilient: PAT dropped from ₹78Cr (FY2019) to ₹-13Cr (FY2021) during COVID but has fully recovered.

Medium confidence

Balance Sheet Value

50% weight

₹212

Growth Valuation

50% weight

₹209

Price vs Market

KUANTUM

Nifty 50

Shareholding Pattern

Stock Health Score

B+

Financially Healthy

7.7 / 10

Profitability

8/10

ROE of 10.5% is acceptable for Others sector (benchmark: 15%)

Debt & Leverage

10/10

D/E ratio of 0.6x is well within the Others sector norm of 0.8x — strong balance sheet

Valuation vs Peers

10/10

P/E of 4.8x trades at a 88% discount to Others sector median (40x) — attractively valued

Cash Flow

1/10

Negative FCF of ₹-136 Cr — company is consuming more cash than it generates

Earnings Growth

10/10

5yr EPS CAGR of 104.7% is well above the Others sector average of 12.0% — strong growth

Dividend

9/10

Dividend yield of 4.3% provides strong shareholder returns (benchmark: 1.5%)

Sentiment Trend — Last 30 Days

Historical Returns

Key Ratios & Growth

FCF Yield

-22.7%

Free cash flow / market cap

Revenue Growth (YoY)

+6.5%

Year-on-year revenue change

Profit Growth (YoY)

-11.3%

Year-on-year PAT change

Operating Cash Flow

₹177 Cr

TTM cash from operations

Key Financials

EPS (TTM)

₹14.5

P/E Ratio

4.8x

P/B Ratio

0.5x

ROE

10.5%

ROCE

10.8%

Debt / Equity

0.56x

Beta

-0.1

Div Yield

4.1%

FCF (Cr)

₹-136 Cr

Revenue (Cr)

₹1,100 Cr

EPS Growth 5Y

104.7%

Mkt Cap (Cr)

₹610 Cr

52W High

₹135

52W Low

₹65

Book Value/Share

₹138

Financial History

Period	Revenue	Op Profit	OPM%	PAT	EPS
TTM	₹1.1K Cr	₹174 Cr	16.0%	₹54 Cr	₹6.15
2025-03-31	₹1.1K Cr	₹247 Cr	22.0%	₹115 Cr	₹13.20
2024-03-31	₹1.2K Cr	₹351 Cr	29.0%	₹184 Cr	₹21.07
2023-03-31	₹1.3K Cr	₹380 Cr	29.0%	₹136 Cr	₹15.60
2022-03-31	₹830 Cr	₹120 Cr	14.0%	₹13 Cr	₹1.54
2021-03-31	₹404 Cr	₹30 Cr	7.0%	₹-13 Cr	₹-1.46
2020-03-31	₹745 Cr	₹119 Cr	16.0%	₹72 Cr	₹8.23
2019-03-31	₹793 Cr	₹156 Cr	20.0%	₹78 Cr	₹8.93
2018-03-31	₹704 Cr	₹148 Cr	21.0%	₹73 Cr	₹8.35
2017-03-31	₹608 Cr	₹118 Cr	19.0%	₹59 Cr	₹6.79
2016-03-31	₹526 Cr	₹65 Cr	12.0%	₹25 Cr	₹2.81
2015-03-31	₹499 Cr	₹64 Cr	13.0%	₹25 Cr	₹2.87
2014-03-31	₹477 Cr	₹76 Cr	16.0%	₹34 Cr	₹3.84

Compounded Growth Rates

Sales Growth

3Y-6.5%

5Y+21.5%

10Y+7.4%

Profit Growth

3Y-26.5%

5Y—

10Y+8.0%

EPS Growth

3Y-26.7%

5Y—

10Y+8.1%

Peer Comparison

Others

Stock	Price	Fair Value	MoS%	P/E	ROE	Signal
STARPAPER Star Paper Mills Limited	₹132	₹657.4	+79.9%	5.1	44.2%	UNDERVALUED
MUFTI Credo Brands Marketing Limited	₹72.9	₹314.3	+76.8%	10.2	16.4%	UNDERVALUED
HEADSUP Heads UP Ventures Limited	₹7	₹28.8	+75.7%	3.7	—	UNDERVALUED
JINDRILL Jindal Drilling And Industries Limited	₹485.4	₹1,838.1	+73.6%	5.9	13.3%	UNDERVALUED
SHANTIGOLD Shanti Gold International Limited	₹174	₹628	+72.3%	9.5	23.6%	UNDERVALUED
SHANKARA Shankara Building Products Limited	₹120.9	₹417.1	+71.0%	3.8	15.9%	UNDERVALUED
KSOLVES Ksolves India Limited	₹289	₹944.6	+69.4%	22.2	114.6%	UNDERVALUED
SEDEMAC SEDEMAC Mechatronics Limited	₹1,672.5	₹5,216	+67.9%	142.9	20.2%	UNDERVALUED