Tamil Nadu Newsprint & Papers Ltd: “From Paper Rolls to Cement Goals — But Where’s the Profit Scroll?”
Date of Publishing -
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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.”
