1. At a Glance
A paper stock trading at 0.55x book, dividend yield of 2.43%, and yet… the bottom line has turned into a black hole. Net profit in June 2025? -₹7.41 Cr. This isn’t a turnaround — it’s a paper plane nosediving in slow motion.
2. Introduction with Hook
TNPL is the kind of company that makes paper — and apparently, also loses money printing it. With three major lines (Paper, Packaging Boards, and even Cement), it sounds like a diversification dream. But in reality? It’s like mixing dosa batter with dal makhani — nothing’s sticking right now.
EPS has gone from ₹56.04 in FY23 to ₹0.54 in FY25 and now a negative ₹-1.07 in Q1 FY26.
Ouch.
3. Business Model (WTF Do They Even Do?)
- Writing & Printing Paper — the kind used in textbooks, office files, and regretful annual reports.
- Paper Boards — for high-end packaging. Think luxury soap boxes, not actual margins.
- Cement — a sustainability pivot using paper sludge to make cement. Kudos for recycling, not so much for profits.
- Power Generation — internal captive use + small commercial sell-offs.
Basically, a paper company that became a cement company that forgot it’s supposed to make profits.
4. Financials Overview
“Sales stable, profits unstable. Like a table with one leg shorter.”
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | ₹5,180 Cr | ₹4,693 Cr | ₹4,491 Cr |
| EBITDA | ₹1,006 Cr | ₹773 Cr | ₹428 Cr |
| Net Profit | ₹388 Cr | ₹208 Cr | ₹4 Cr |
| OPM % | 19% | 16% | 10% |
| EPS | ₹56.0 | ₹30.1 | ₹0.54 |
TTM Net Profit: -₹26 Cr. That’s not margin erosion. That’s financial erosion.
5. Valuation
“Looks cheap. Acts cheaper.”
- Book Value: ₹302
- CMP: ₹165
- P/B: 0.55x
But don’t get fooled by P/B. TNPL is in a profitability coma. A stock can trade at 0.3x book and still deserve a refund.
Fair Value Range:
- Optimistic: ₹190–₹210 (assuming FY26 profit comes back)
- Realistic: ₹130–₹150 (flat to negative PAT trend)
6. What’s Cooking – News, Triggers, Drama
- New CMD: Dr. Sandeep Saxena joined July 2024 — fresh hopes?
- Resignation: Marketing head Santosh Wakhloo walked out July 2025. Coincidence?
- Q1 FY26 Loss: ₹-7.4 Cr PAT. OPM at just 8.88%. Sad flute plays in the background.
- CARE & ICRA Ratings: Still holding up. Either agencies are patient… or paper is forgiving.
7. Balance Sheet
“Assets = Huge. Liabilities = Heavier.”
| Item | FY25 |
|---|---|
| Equity | ₹69 Cr |
| Reserves | ₹2,018 Cr |
| Borrowings | ₹1,604 Cr |
| Other Liabilities | ₹2,191 Cr |
| Total Assets | ₹5,883 Cr |
Debt is still high. Borrowings down from ₹1,871 Cr to ₹1,604 Cr in FY25, but no major deleveraging yet.
8. Cash Flow – Sab Number Game Hai
| FY | CFO | CFI | CFF | Net CF |
|---|---|---|---|---|
| FY23 | ₹806 Cr | -₹101 Cr | -₹652 Cr | ₹53 Cr |
| FY24 | ₹419 Cr | -₹136 Cr | -₹270 Cr | ₹14 Cr |
| FY25 | ₹570 Cr | -₹162 Cr | -₹493 Cr | -₹86 Cr |
Observation: Operating cash flow remains strong-ish. But massive financing outflow in FY25. Why? Debt servicing, dividend overkill, or both.
9. Ratios – Sexy or Stressy?
“ROE? You mean Return on Exhaustion?”
| Ratio | Value |
|---|---|
| ROCE | 6% |
| ROE | 0.18% |
| OPM | 10% |
| Interest Coverage | Weak |
| D/E | 0.74 |
At these levels, the company isn’t compounding wealth. It’s composting it.
10. P&L Breakdown – Show Me the Money
| FY | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹5,180 Cr | ₹1,006 Cr | ₹388 Cr |
| FY24 | ₹4,693 Cr | ₹773 Cr | ₹208 Cr |
| FY25 | ₹4,491 Cr | ₹428 Cr | ₹4 Cr |
PAT has dropped by 99% in two years. That’s not a typo. That’s a cry for help.
11. Peer Comparison
“JK Paper is a CEO in a suit. TNPL is a guy holding resumes.”
| Company | Rev (Cr) | PAT (Cr) | P/E | CMP / BV | ROE |
|---|---|---|---|---|---|
| JK Paper | ₹6,718 | ₹410 | 15.5 | 1.17 | 7.8% |
| West Coast | ₹4,062 | ₹311 | 11.5 | 1.03 | 9.2% |
| Kuantum | ₹1,107 | ₹115 | 9.9 | 0.94 | 9.9% |
| TNPL | ₹4,517 | -₹26 | — | 0.55 | 0.18% |
Only thing TNPL is winning at? Book value discount. Not profitability.
12. Miscellaneous – Shareholding, Promoters
| Category | Jun 2025 |
|---|---|
| Promoters | 35.32% |
| FIIs | 5.39% |
| DIIs | 12.02% |
| Public | 43.21% |
| Government | 4.06% |
FIIs seem slightly optimistic. Or they’re just here for the dividend.
13. EduInvesting Verdict™
TNPL is what happens when a 1979 PSU discovers ESG before EBITDA. There’s paper, boards, cement, and even power — yet no profit. It has scale, it has legacy, it has board meetings… but not enough board margins.
For now, it’s a value trap with a pulp fiction storyline. If new CMD Dr. Saxena pulls off a turnaround, maybe we’ll revise. Till then:
“Feels like a government-backed paperweight with cement shoes.”
Written by EduInvesting Team | 25 July 2025
Tags: TNPL, Tamil Nadu Newsprint, Paper Stocks, Cement, Loss-making, Q1 FY26, EduInvesting Premium
