1. At a Glance
This is not your average paper mill making exam pads for CBSE students. Pudumjee Paper Products Ltd (PPL) is in the fancy business of food-grade wrapping papers, pharma-grade printing sheets, hygiene tissues, and even MICR cheque paper (remember cheques?). With ₹803 Cr revenue and ₹104 Cr PAT in FY25, the company is as “specialty” as it claims. But here’s the tissue issue: 5-year sales CAGR of just 6% means the company has more wrinkles than the parchment it sells.
2. Introduction
Pudumjee Paper is the kind of company that stays invisible — until you realise your burger wrapper, your hotel napkin, and your bathroom roll all came from their Pune plant. Incorporated in 2015 (a spin-off from the venerable Pudumjee Group), it immediately branded itself as “specialty paper” instead of boring old kraft sheets. That’s like calling yourself “artisanal” because you added a bow tie to your samosa packaging.
The product range is encyclopaedic: from décor laminates to Bible printing paper, from greaseproof sheets for McDonald’s fries to toilet rolls for IT parks. They’ve even got a brand calledGreenlimefor away-from-home hygiene (airports, corporates) andChef Smartrfor hotel chefs. Basically, if you’ve wiped, wrapped, or printed anything in the last week, chances are Pudumjee had something to do with it.
The financial story, however, is a classic paper company paradox: profit CAGR ~27% in five years, but sales growth crawling at 6%. Translation: margins are doing heavy lifting while topline takes a nap. With capacity utilisation at ~80% and a market cap of ₹1,223 Cr, Pudumjee is now trying to stay relevant with energy-efficient windmills and relocation fantasies to Mahad that are “pending” forever.
3. Business Model (WTF Do They Even Do?)
Pudumjee’s empire of cellulose runs on two divisions:
- Paper (~97% of revenue)
- Food-grade: greaseproof, oven bake, vegetable parchment.
- Pharma-grade: medical packaging, Bible printing (holy profits).
- Décor & specialty: laminates, anti-rust, carbon base.
- Security paper: MICR cheques, band roll paper.
- Printing grades: thin printing sheets for niche markets.
- Hygiene Products (~3% of revenue)
- Tissues, napkins, toilet rolls, dispensers, soaps, sanitisers — branded underGreenlime.
- Institutional focus: hotels, airports, offices.
Distribution is B2B heavy. They sell directly to corporates, restaurants, printers, and packaging companies, with ~3% exports sprinkled across Europe and nearby Asia. Top five customers = 36% of
revenue — so yes, a sneeze from one big client can give Pudumjee a cold.
4. Financials Overview
Quarterly Snapshot (Q1 FY26 vs YoY & QoQ):
| Metric | Latest Qtr (Jun’25) | YoY Qtr (Jun’24) | Prev Qtr (Mar’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | ₹196 Cr | ₹203 Cr | ₹190 Cr | -3.1% | 3.2% |
| EBITDA | ₹34 Cr | ₹37 Cr | ₹24 Cr | -8.1% | 41.7% |
| PAT | ₹36.2 Cr | ₹28 Cr | ₹19 Cr | 29.3% | 90.5% |
| EPS (₹) | 3.82 | 2.90 | 1.99 | 31.7% | 92.0% |
Commentary:
- YoY revenue dip shows demand slack, but profits skyrocketed because other income jumped (₹19 Cr vs ₹4–5 Cr usual).
- QoQ PAT doubled. Tissue profits are surprisingly thick.
- Annualised EPS = ₹15.3 → P/E ~8.4. That’s dirt cheap compared to peers — but is it sustainable?
5. Valuation (Fair Value Range Only)
- P/E Method:EPS (TTM) ₹11. Industry P/E ~15. FV range = ₹120 – ₹165.
- EV/EBITDA:EV ₹1,200 Cr; EBITDA FY25 ₹121 Cr; EV/EBITDA = 9.9. Peer fair range 8–12 → FV ₹110 – ₹165.
- DCF (optimistic tissue math):Assume 8% revenue CAGR, PAT margin 12%. Discount rate 12%. FV range = ₹115 – ₹150.
👉Final FV Range = ₹110 – ₹165(for education only).
6. What’s Cooking – News, Triggers, Drama
- Pending Relocation:Plans to move to a 75-acre Mahad site are still stuck in limbo. Market conditions + cost = excuses.
- Green Energy:Company ditched solar arrangement, now owns three old windmills (3.75 MW total). Covers ~6% of power needs — the rest is still electricity bills.
