West Coast Paper Mills Ltd Q1FY26 FY25 – From Dandeli’s Mills to Optical Thrills: Roast of a Paper Dinosaur Learning Fibre Yoga
1. At a Glance
West Coast Paper Mills Ltd (WCPM) is a ₹3,050 Cr mid-cap that’s been rolling paper since 1955 in Karnataka’s Dandeli forests. Current market price ₹462, down 25% in one year, making investors feel like torn notebooks after school exams. Book value ₹529, yet CMP trades at 0.87x BV—classic “cheap stock, expensive patience.” P/E of 12.1 (vs industry 16.4) looks like a bargain basement, but FY25 PAT collapsed 55% to ₹274 Cr. ROE is at 9.5%, ROCE at 11.5%. Detective note: When your book value is higher than your CMP, market is basically saying “beta, paper bana le, value hum nahi denge.”
2. Introduction
West Coast Paper is like that senior citizen at a wedding who still does bhangra—old, experienced, still has moves, but stamina is questionable. Established in 1955, they churn paper, packaging boards, and now flirt with optical fibre cables. Because why not? If Ambani can do telecom, WCPM can at least make cables.
The company’s Dandeli plant is so integrated it could make pulp fiction—literally. 3.2 lakh MTPA capacity, 2.65 lakh pulp in-house, plus captive power. Utilization at 95% in FY24 proves they’re sweating those machines. But then, FY25 results show sales down to ₹4,057 Cr (–5%), PAT at ₹274 Cr (–55%). Clearly, paper doesn’t print profits automatically.
Meanwhile, the “Optilinks” cable division contributes 7% revenue now, growing faster than Baba Ramdev’s FMCG dreams, with 65% growth in two years. They even set up a Hyderabad cable unit in 2024. So WCPM is half forest, half fibre optic. Detective mutters: “Old monk tried new tequila shot, let’s see if stomach handles it.”
3. Business Model – WTF Do They Even Do?
Paper Division (93% revenue): Premium writing papers, boards, stationary. Basically the stuff kids doodle on in class before moving to iPads. Volumes flat, but price realizations rose 30% between FY22–FY24. Inflation made even paper feel like gold leaf.
Cables Division (7% revenue): Optical fibre cables, FRP rods, glass roving cables. Segment doubled capacity in 2024. If Jio and Airtel keep fighting, WCPM quietly supplies the cables.
Backward integration is WCPM’s flex—pulp, power, and now even acquisition of Uniply Décor in 2023. Paper + plywood + fibre = full home makeover. Business model ka tagline: “From your notebook to your Netflix.”
4. Financials Overview
Quarterly Numbers
Source table
Metric
Latest Qtr (Q1FY26)
YoY Qtr (Q1FY25)
Prev Qtr (Q4FY25)
YoY %
QoQ %
Revenue
₹955 Cr
₹1,139 Cr
₹1,041 Cr
–16.1%
–8.3%
EBITDA
₹110 Cr
₹395 Cr
₹81 Cr
–72.1%
35.8%
PAT
₹60 Cr
₹278 Cr
₹46 Cr
–78.4%
30.4%
EPS (₹)
8.23
37.2
6.66
–77.9%
23.6%
Annualised EPS ≈ ₹33. CMP ₹462 → P/E ~14.
Detective’s joke: “They sold paper but profits got shredded.”
5. Valuation Discussion – Fair Value Range
P/E Method Annualised EPS ~₹33. Reasonable PE band 10–15. → Value: ₹330 – ₹495.
