Shreyans Industries Ltd: Printing Paper Dreams on Tissue-Thin Margins
1. At a Glance
Here’s a company that literally prints money — no, not RBI’s kind, but the paper that everyone else prints on. Shreyans Industries Ltd (SIL) has been around since 1979, grinding agricultural residue into paper and pretending it’s a cash cow. With promoters from the Oswal family of Ludhiana, two units in Punjab, and a sales mix dominated by plain old writing and printing paper, this is the classic “boring stock your CA uncle talks about after the third peg.” Market cap? A humble ₹317 Cr. Stock P/E? A rock-bottom 5.9 — cheaper than chai at an IRCTC stall.
2. Introduction
Imagine explaining this business at a party: “We make writing paper from wheat straw.” That’s it. No AI buzzwords, no SaaS, no EV charging stations. Just paper. Yet, in an age where people buy ₹500 Moleskine notebooks to doodle stick figures, Shreyans still finds takers.
They have about 100 dealers across India and one marketing branch in Delhi (because apparently Ludhiana isn’t glamorous enough for client meetings). Their clients? The government, security press, textbook boards, publishers, and exporters of diaries nobody writes in.
The company imports wood pulp from Sweden, Canada, and the US — because local jugaad pulp isn’t enough — and exports to Sri Lanka, UAE, and Nepal. Fun twist: while India is one of the world’s largest paper-consuming nations, Shreyans’ FY23 geographical revenue split says Exports ~97%, Domestic ~3%. Either they’re allergic to selling in India, or foreign buyers just pay in harder currencies.
Installed capacity is ~94,000 MTPA, and FY23 production was 92,996 MT. Basically, they’re operating at near-full throttle. Yet, revenues are stuck at ₹635 Cr TTM — like that scooter engine which makes a lot of noise but barely moves.
3. Business Model (WTF Do They Even Do?)
Let’s break it down:
Product basket: From 44 GSM to 200 GSM papers — cream wove, azure laid, offset, duplicating paper, stamp paper, railway ticket paper. Basically, if it crinkles and you can scribble on it, they sell it.
Revenue mix FY23: Paper sales = 86%, Soda Ash (by-product from chemical recovery) = 13%, Miscellaneous = 1%. The soda ash side hustle makes them sound like that guy selling both samosas and photocopies from the same shop.
Clients: Publishers, copy manufacturers, textbook boards, Railways, postal departments, and the Security Press. Translation: their customer base is literally as boring as the morning newspaper.
Edge? They make paper from agri residues. Green and eco-friendly, but let’s be honest — still subject to input cost volatility.
So essentially, SIL is a commodity play dressed up as a “specialty eco-friendly paper manufacturer.” Cute pitch, but margins still scream commodity.
4. Financials Overview
Quarterly Snapshot (Q1 FY26 vs Q1 FY25 & Q4 FY25):
Metric
Latest Qtr (Q1 FY26)
YoY Qtr (Q1 FY25)
Prev Qtr (Q4 FY25)
YoY %
QoQ %
Revenue
₹154 Cr
₹136 Cr
₹179 Cr
13.2%
-14.0%
EBITDA
₹27 Cr
₹16 Cr
₹27 Cr
68.7%
0.0%
PAT
₹17.3 Cr
₹14 Cr
₹18 Cr
23.6%
-3.9%
EPS (₹)
12.5
10.1
13.3
23.6%
-6.0%
YoY: Revenue up double digits, PAT up 24%. They’re printing thicker books again.
QoQ: Revenue fell 14% — looks like school exam season got over. PAT dipped slightly.
Margins: OPM ~10% in Q1 FY26. Commodity swings keep it yo-yo-ing between 6–21% over last 12 quarters.
👉 Educational FV Range: ₹300 – 500 Disclaimer: This FV range is for educational purposes only and is not investment advice.
6. What’s Cooking – News, Triggers, Drama
Q1 FY26 results: PAT ₹17.3 Cr, auditors gave an unmodified opinion. In today’s market, that’s a trigger in itself.
Exports-heavy: 97% revenue from exports makes them currency-sensitive. Rupee falling = paisa vasool. Rupee rising = “arre yaar, margins gaya.”
Soda Ash angle: Their by-product adds 13% revenue. If chemical prices spike, SIL can claim they’re a “diversified play.”
Promoter stability: No pledges, consistent holding at 50.5%. A rare sight in smallcap land.
Potential triggers: Rising paper demand in textbooks, government tenders, and maybe some capacity utilization rejig. But don’t expect AI-powered blockchain paper anytime soon.
