Shreyans Industries Ltd Q3 FY26: ₹159 Cr Sales, Negative ₹2.55 Cr PAT, Yet Trading at 0.49x Book — Paper Business or Deep Value Puzzle?
1. At a Glance – The Paper That Turned Red Ink
Shreyans Industries Ltd is currently trading at ₹153 with a market cap of ₹211 crore. Sounds small? Wait till you hear this: its book value is ₹318 per share, meaning the stock trades at just 0.49 times book. That’s not a discount. That’s clearance sale energy.
Stock P/E sits at 5.98. Earnings yield? A juicy 18.3%. ROCE at 16.3% and ROE at 12.6% suggest this is not a complete disaster. But then… Q3 FY26 happened.
The stock is down 19.4% in 3 months and 30.2% in 6 months. So clearly, Mr. Market is not impressed.
But here’s the twist: market value of investments is ₹240 crore — higher than the entire market cap of ₹211 crore.
So what exactly are we looking at? A value trap wrapped in recycled paper? Or a boring paper company sitting on hidden assets?
Let’s unfold this file like a CBI officer reading a suspicious tender document.
2. Introduction – Ludhiana’s Paper King or Silent Value Trap?
Shreyans Industries was incorporated in 1979. While the rest of India was upgrading from inland letters to WhatsApp, Shreyans stuck to what it knows best: writing and printing paper.
Part of the Oswal family-promoted Shreyans Group from Ludhiana, this company manufactures paper from agricultural residues. That means instead of cutting trees like villains in a Bollywood environmental movie, they use crop waste.
They operate two manufacturing units in Punjab — Ahmedgarh and Banah — with installed capacity of ~94,000 MTPA. In FY23, they produced 92,996 MT. That’s basically running at full capacity. Efficiency level: Punjabi wedding buffet — nothing left unused.
Their clients?
Major publishers
Copy manufacturers
Textbook boards
Railways
Government departments
Security press
Translation: If you’ve ever filled a railway ticket, exam paper, or government form, Shreyans might have printed your stress.
Revenue split FY23:
Paper: 86%
Soda Ash (chemical recovery): 13%
Other operating income: 1%
Exports account for 97% of revenue and domestic just 3%. Yes, 97%. This is more “Made in India for the world” than most startup founders’ LinkedIn bios.
So why is this export-heavy, debt-light, asset-rich company trading at 6 P/E?
Is the market ignoring it? Or does it know something we don’t?
3. Business Model – WTF Do They Even Do?
Okay, lazy investor. Let me simplify.
Shreyans makes writing and printing paper. But not just “notebook ka paper.”
Their product range spans from 44 GSM to 200 GSM. That includes:
High Brightness Paper
Cream Wove
Maplitho
Stamp Paper
Rail Ticket Paper
Postal Envelope Paper
Super Calendered Paper
Basically, if it can be written on, stamped on, or printed on — they probably make it.
They manufacture paper using agricultural residues instead of wood pulp as primary raw material. But they also import wood pulp from USA, Sweden, and Canada.
So the input cost structure is globally exposed. Dollar goes up? Margins cry.
