Shree Krishna Paper Mills & Industries Ltd (500388)
🎯 Key Takeaways
- Shree Krishna Paper Mills & Industries Ltd is a mid-sized paper manufacturer operating in the forest materials sector, currently trading at a deeply discounted valuation with high returns over the past year. The company exhibits strong profitability metrics (ROE 72.
- Revenue declined 1.9% QoQ to ₹60 in Q1FY27.
- ⚠️ 1) Profitability is highly volatile with no clear recovery trend, as seen in the sharp drop in net profit and margins in the latest quarter. 2) Heavy
📖 The Story
Shree Krishna Paper Mills & Industries Ltd is a mid-sized paper manufacturer operating in the forest materials sector, currently trading at a deeply discounted valuation with high returns over the past year. The company exhibits strong profitability metrics (ROE 72.4%, ROCE 51.7%) but operates with moderate leverage (D/E 0.93). Recent financial trends show volatile revenue and margins, with profitability declining in the most recent quarter despite stable top-line levels.
📰 What's Happening
In Q1FY27 (June 2026), the company reported revenue of ₹60 crore with operating profit of ₹1 crore and net profit of ₹6 crore, marking a sharp decline from ₹17 crore net profit in the previous quarter (Mar 2026). Management has not disclosed any major strategic shifts in recent filings, but consistent promoter holding at 42.25% across quarters suggests no dilution or stake sale activity. The company has maintained a stable shareholder base with over 1,600 public shareholders, though institutional ownership remains negligible.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|
| Revenue | 55 | 62 | 50 | 61 | 60 |
| Operating Profit | 2 | 2 | 1 | 2 | 1 |
| OPM % | 3.1% | 3.1% | 1.6% | 3.1% | 1.9% |
| Net Profit | 1 | 1 | 0 | 17 | 6 |
| EPS | ₹0.65 | ₹0.60 | ₹0.36 | ₹12.77 | ₹4.72 |
Revenue has fluctuated between ₹50–62 crore over the past six quarters, but profitability has shown a clear downward trend, with net profit collapsing from ₹17 crore in Mar 2026 to just ₹6 crore in Jun 2026. This deterioration coincides with a drop in operating margin from 3.1% to 1.9%, despite no significant change in revenue scale. The company has not attributed margin pressure to specific cost increases in filings, but the volatility suggests operational or pricing challenges in a competitive paper market.
🔮 Management Outlook & What's Next
There is no explicit forward guidance or strategic outlook provided in the latest regulatory filings. Management commentary has been limited to standalone quarterly results without discussion of future demand, capacity utilization, or investment plans. The absence of guidance suggests either operational uncertainty or a lack of long-term visibility into demand conditions in the paper sector.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 14 | 14 | 14 | 14 |
| Reserves | 19 | 21 | 23 | 39 |
| Borrowings | 29 | 32 | 32 | 42 |
| Total Liabilities | 94 | 99 | 112 | 137 |
| Fixed Assets | 33 | 30 | 30 | 28 |
| Investments | 2 | 2 | 2 | 1 |
| Total Assets | 94 | 99 | 112 | 137 |
The balance sheet shows a stable capital structure with equity remaining flat at ₹14 crore and reserves increasing slightly from ₹21 to ₹39 crore over two years, indicating retained earnings. Borrowings have risen from ₹32 crore to ₹42 crore between Mar 2025 and Mar 2026, suggesting modest capital expenditure or working capital financing. Total assets grew from ₹99 crore to ₹137 crore, reflecting asset base expansion, but the rising debt alongside flat equity raises leverage concerns if profitability remains volatile.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2025 | Mar 2026 |
|---|---|---|
| Operating | +2 | +0 |
| Investing | -3 | -6 |
| Financing | +1 | +6 |
| Net Cash Flow | +0 | -0 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 42.3% | 42.3% | 42.3% | 42.3% |
| FII | 0.0% | 0.0% | 0.0% | 0.0% |
| DII | 0.0% | 0.0% | 0.0% | 0.0% |
| Public | 4.8% | 4.9% | 4.9% | 4.9% |
| # Shareholders | 1,676 | 1,778 | 1,718 | 1,686 |
Promoter holding remains unchanged at 42.25% over the last four quarters, with no FII or DII participation observed in shareholding patterns. The public shareholding has slightly declined in proportion due to stable promoter stake amid minor equity movements, but the investor base remains highly fragmented with over 1,600 shareholders. There are no signs of institutional accumulation or significant retail investor shift.
⚖️ Peer Comparison — Paper
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| JKPAPER | 7,520 | 22.7 | 8.0% | 5.9% | 0.44 |
| WSTCSTPAPR | 4,710 | 20.5 | 9.5% | 6.6% | 0.09 |
| SESHAPAPER | 1,585 | 15.3 | 6.7% | 4.8% | 0.00 |
| ANDHRAPAP | 1,457 | 52.7 | 2.4% | 1.4% | 0.12 |
| NRAIL | 1,071 | 17.2 | 10.0% | 7.6% | 0.97 |
| TNPL | 1,060 | 4.1 | 7.0% | 12.5% | 0.76 |
| PDMJEPAPER | 928 | 10.2 | 18.3% | 13.6% | 0.03 |
| EMAMIPAP | 697 | 7.8 | 15.6% | 18.9% | 1.65 |
| SATIA | 684 | — | 3.9% | -0.7% | 0.22 |
| KUANTUM | 669 | 18.6 | 4.9% | 2.9% | 0.70 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1) Profitability is highly volatile with no clear recovery trend, as seen in the sharp drop in net profit and margins in the latest quarter. 2) Heavy reliance on a fragmented public shareholder base with no institutional interest may limit liquidity and support. 3) Rising borrowings without a corresponding increase in equity or asset base efficiency could strain financial flexibility if operating performance does not improve.
📋 Recent Filings
-
🔴 annual report 3 September 2026{ "summary": "Shree Krishna Paper Mills & Industries Ltd (BSE: 500388) filed its FY 2025-26 annual report on September 3, 2026, detailing robust fin...
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🟡 Board Meeting 3 September 2026Shree Krishna Paper Mills & Industries Ltd (500388) will hold its 54th AGM on September 29, 2026 at 11:00 AM IST via video conferencing. Shareholders ...
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🟡 Board Meeting 2 September 2026The company announced that its 54th Annual General Meeting will be held on September 29, 2026 via video conference with e-voting, and the register of ...
🧠 Analyst's Read
The company presents a paradox of strong historical returns and high profitability ratios amid deteriorating recent financials and no visible growth catalysts. Investors should monitor whether margin recovery can materialize in upcoming quarters, particularly if management provides clarity on cost management or demand trends in the paper industry.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-13.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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