West Coast Paper (WSTCSTPAPR)

FairStock Score: 25/100 — RISKY

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

Key Financials

Strengths

• Low leverage with debt/equity of only 0.11
• Promoter holding is strong at 56.55%, aligning management with minority shareholders
• Book value is ₹401.99; the stock trades at only 1.23x book, offering some asset support
• Sales growth is positive at 3.34%, with latest quarter sales at ₹1,050 Cr
• Modest dividend yield of 1.19% provides some income while waiting

Concerns

• Profit declined 58.16%, and latest quarter net margin is weak: ₹30 Cr profit on ₹1,050 Cr sales (~2.9%)
• ROE is low at 5.56%, indicating poor returns on shareholder capital
• Piotroski F-Score of 4/9 and FairStock Score of 25/100 signal financial weakness and risk
• P/E of 19.51 with a PEG of 5.84 looks expensive for a business with falling profits

AI Analysis

Let me look at West Coast Paper as a business, not a ticker. It earns ₹30 crore on ₹1,050 crore of quarterly sales—a net margin below 3%. Over the past year, profits fell 58.16%, while sales only grew 3.34%. That tells me this is a cyclical, commodity paper maker with little pricing power. Return on equity is just 5.56%, far below what I'd demand from a high-quality franchise. Return on capital of 11.47% is mediocre, and the FairStock Score of 25/100 reinforces that this is a risky situation. The balance sheet is the main comfort: debt/equity is only 0.11, book value is ₹401.99, and the shares trade at 1.23 times book. With promoter holding at 56.55%, alignment exists. But a low price-to-book only matters if the assets can generate earnings. At current profit levels, the P/E of 19.51 is not cheap, and a PEG of 5.84 suggests growth doesn't justify the multiple. The Piotroski F-score of 4/9 points to weak financial fundamentals, not the classic value-recovery signals I look for. I would not call this a wonderful business. It may be a cyclical trough, but I see no near-term catalyst. The 52-week range of ₹375 to ₹645 shows volatility and uncertainty. A 1.19% dividend yield gives me little reward while I wait. For a Buffett-Graham investor, the margin of safety is insufficient when earnings are falling and returns on equity are low. Patience, not action, is appropriate here.

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