In this post we will do West Coast Paper share fundamental analysis in depth, all about their fundamentals, future view, company’s outlook, their financials, shareholding patterns, share forcast etc. Based on company’s fundamentals and technical analysis, we will try to predict West Coast Paper share price target 2023,2024,2025-2030.
About West Coast Paper
West Coast Paper Mills Ltd is one of the oldest and the largest producers of paper for printing, writing, and packaging in India. It was established in 1955, the Mill is located at Dandeli in Uttara Kannada district in Karnataka.
The global quality paper produced by the Company serves the needs of innumerable industries in printing, writing, publishing, stationary, notebooks and packaging sectors in India, in the process contributing to the development of the nation.
Company Overview
| Company Name | West Coast Paper Mills Ltd |
| Company Website | westcoastpaper.com |
| Market Cap (Cr.) | ₹ 3,461 |
| 52 W High / Low | ₹ 664 / 242 |
| Stock P/E | 4.39 |
| Book Value | ₹ 309 |
| P/B (Price to Book Value) | 1.70 |
| Face Value | ₹ 2.00 |
| ROCE | 22.9 % |
| ROE | 20.2 % |
| Dividend Yield | 1.15 % |
Business Overview:
Paper and Paperboard Division (96% of revenues)
- The company produces the finest papers under the WESCO brand Paper & boards, along with a range of office stationery, premium printing products, and other value-added products under this brand.
- The production of Paper and Paperboard was 296785 MT (93 % capacity utilization).
Cables Division (4% of revenues)
- The company manufactures optical fibre cables through its manufacturing facility located in Mysore which caters requirements of the telecom sector of India. The Production of Optical Fibre cables was 63630 Kms in FY22.
New products
- The Company has ventured into micro cables, Ribbon & FTTH cables, executed orders for ribbon cables and Indian Telcos for FTTH & is executing orders with multitube cables into Europe.
Distribution Network and Presence
- The company has a base of 75 dealers with 6 zonal offices in India. It also has an international presence with exports to 15+ countries.
West Coast Paper Financial Review (Investor Point of view)
- Company sales are continuously increasing and from last 3 years compound sales growth is 20%.
- Company’s operating profit is continuously increasing, maintaining a operating margin above 20% which is good and on TTM basis it is 30%.
- Company’s quarterly sales is also increasing from last two quarters they have posted operating margin above 30%.
- Company balance sheet is strong and has a good reserve of INR 2,025 crore In Sep 2022.
- Over the time Company reduced their debt and right now their debt is under control as on Sep 2022 company have INR 322 crore of debt, their debt to equity ratio is only 0.16 which is very good.
- Till Sep 2022, company’s total fixed asset value was around INR 1,712 crore.
- Company’s return on equity (ROE) is 20.2%, and return on capital employed (ROCE) is also 24%.
- Company also paying dividend to their share holders, company dividend yield is 1.15%.
- Company’s book value is ₹ 309, and the share price is trading almost 1.68 times of their book value, which is good.
- The good thing is company’s share price have corrected from its high INR 650 and trading near its support zone.
- Company have also have a investment of INR 818 crore as on sep 2022, and they are continuously increasing it.
- Company’s share price is trading above its 200 Demas that is a good thing.
- Promoter holding in company is above 56%, whereas FIIS holds 5.62% and DIIS hold 7.60% stake in the company, the retailer holding in the company is around 30% as the data based on sep 2022.
West Coast Paper Share Price Target for long term
West Coast Paper Share Price Target 2023
| Year | West Coast Paper Share Price in 2023 |
| 2023 | ₹600 to ₹650 |
West Coast Paper Share Price Target 2024
| Year | West Coast Paper Share Price in 2024 |
| 2024 | ₹750 to ₹780 |
West Coast Paper Share Price Target 2025
| Year | West Coast Paper Share Price in 2025 |
| 2025 | ₹936 to ₹1000 |
Acquisition of Andhra Papers Ltd (APL)
The company acquired the majority stake in APL in FY20. APL has a manufacturing capacity of 2.41-lakh MPTA and also manufactures writing, printing, and cut-size papers for overseas and domestic markets.
West Coast Paper Share Price Target 2030
| Year | West Coast Paper Share Price in 2030 |
| 2030 | ₹2200 to ₹2500 |
Conclusion:
Overall , West Coast Paper is a company with strong fundamentals, company have lower debt, company sells are increasing, they continuously generating profit and increasing their reserves and also giving dividends, therefore in coming year we can expect a good growth in the company.
Here is the end of the post “West Coast Paper share fundamental analysis”, hope you got some value, please post your valuable comments below in comment section.
Source: West Coast Paper Annual Report and Internet
Disclaimer: On this page all the mentioned entries are based on the date the post was written, these could be change in future.
Nirmal is a NISM Certified Derivative Trader & the Founder of InvestandEarn.net (Financial Blog). He entered the world of Equity research to explore his interests in financial markets having 5+ Years of Experience in Share Market Trading & Investing. Nirmal frequently writes about Share Market Trading & Investment and publishes his personal view on the market. Drop him a mail at nirmal.jaysval@investandearn.net.
