Emami Paper (EMAMIPAP)

FairStock Score: 51/100 — MIXED

Score breakdown: P/E: 2/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

When I look at Emami Paper, I see a classic cyclical asset play. The stock trades at ₹76.18 against a book value of ₹133.72 — that's 57 paise for every rupee of net worth. Graham would have called this a margin of safety. However, sound balance sheets alone don't make good investments; the business must generate returns. Here, ROE is just 4.18% and ROCE 6.58%, which tells me the paper business is capital-hungry and currently earning subpar returns. The debt-to-equity of 1.01 is acceptable but not ideal, and interest costs likely eat into profits. The reported profit growth of 994% looks spectacular but is misleading — it's a rebound from a low base, not a new compounding machine. The latest quarter's net profit of ₹17 Cr on sales of ₹500 Cr translates to a thin 3.4% margin. Still, the Piotroski score of 7/9 suggests improving fundamentals, and promoter holding of 74.97% aligns owners with minority shareholders. At ₹512 Cr market cap, the market is pricing in modest expectations. I would not call this a stalwart or a fast grower; it's a cyclical paper company in an early recovery. The dividend yield of 1.89% gives a small income cushion. My approach would be to hold this only as a value-backed cyclical play, watching paper price cycles and debt reduction. If returns on capital improve meaningfully, the low P/B could re-rate. If not, the discount to book may persist or widen. Patience is required, but with a FairStock score of 52, I'd keep it on the radar rather than rush in.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer