AI Summary
✦ ClarthaStar Paper Mills is a paper manufacturer supplying industrial packaging papers, cultural papers, paper boards, and related grades. Packaging papers and boards serve industrial customers, while cultural papers address consumer-facing segments in India and overseas. No major recent development provides a clear catalyst for revenue or margin improvement. Revenue declined 6.0% year-on-year, while profit fell 20.4%. Declining margins and 4.7% ROE indicate weak earnings quality, with 0.61 debt/equity adding leverage impact to shareholder returns. At 7.3x earnings, the stock appears undervalued versus its subdued growth profile, but margin contraction and limited near-term catalysts remain key risks. The open question is whether operating performance can improve without stronger demand or pricing support.
Price Forecast
Probabilistic Range
Probabilistic lognormal cone using 1Y realized volatility and analyst-target drift when available.
Revenue Forecast
₹ CrEPS Forecast
₹ / shareMulti-factor synthesis of 5 key dimensions
Analyst coverage unavailable
Fundamentals
Fundamentals institutional score is 28 using EVA spread proxy -7.3%; growth durability 53.7.
Valuation
Valuation institutional score is 82 using relative multiple z-scores where peer dispersion is available.
Analyst Consensus
No usable analyst target or recommendation data was available.
Technical Structure
Technicals institutional score is 80 using EMA-20 continuation within 5% tolerance; VCP range/volume contraction proxy.
Market Sentiment
This data source has not been supplied for the decision payload.
Signal Summary
Market intelligence remains Neutral. valuation and technical structure provide support, while fundamentals remain considerations.
Composite weights: Fundamentals 25%, Valuation 20%, Analyst Consensus 20%, Technical Structure 20%, Market Sentiment 15%.
Key Data Points
Important Note: This is market intelligence, not investment advice. Always conduct your own research and consider your financial goals and risk tolerance.
Valuation Metrics
Trading 12.7% below historical median. Valuation is stable — currently in the strongly undervalued zone (z-score: -0.96). Confidence: 81%.
Live forward EPS implies next-12-month EPS of ₹42.05. Applying the stock's normalized valuation corridor produces a fair range of ₹322.52 to ₹440.68, with base value near ₹353.64 (+129.5% vs current price).
Live forward estimate anchored to the company's historical valuation corridor.
Forward EPS
₹42.05
Forward P/E
3.7x
Base Fair Value
₹353.64
Fair Range
₹322.52 - ₹440.68
Upside To Base
+129.5%
Estimate Source
Live forward EPS
5Y Average
8.29
Current
7.34
Overvalued
10.48
Undervalued
7.67
5Y Average
0.02
Current
0.02
Overvalued
0.03
Undervalued
0.02
5Y Average
0.35
Current
0.34
Overvalued
0.40
Undervalued
0.30
Peers & Comparison
Sector: Materials · Theme: Paper Products
| Company | Rev. Growth | Margin | P/E | vs Avg | 52W Perf. |
|---|---|---|---|---|---|
GENUS P&B LIMITED GENUSPAPERPaper Products | +11.5% | 1.0% | 33.0x Fair | -4% vs avg | -31.0% |
MAGNUM VENTURES LTD. MAGNUMPaper Products | +7.8% | -2.4% | — | — | -15.6% |
KUANTUM PAPERS LIMITED KUANTUMPaper Products | +8.7% | 3.8% | 17.8x Undervalued | -48% vs avg | -25.5% |
ANDHRA PAPER LIMITED ANDHRAPAPPaper Products | +0.1% | 1.6% | 64.1x Premium | +87% vs avg | -18.5% |
BALKRISHNA PAPER MILLS L BALKRISHNAPaper Products | -46.7% | -137.7% | — | — | -13.0% |
MALU PAPER MILLS LIMITED MALUPAPERPaper Products | +30.8% | -3.3% | — | — | -14.8% |
JK PAPER LIMITED JKPAPERPaper Products | +12.7% | 4.3% | 22.3x Undervalued | -35% vs avg | +12.2% |
ASTRON PAPER BORD MIL LTD ASTRONPaper Products | -92.4% | 0.0% | — | — | -74.8% |
Comparable-scale peer data is limited — showing nearest stored business/industry peers instead of an empty comparison.
Financials
Real statement data for revenue, earnings quality, conversion, and balance-sheet coverage. Monetary values are shown in Rs crore.
Latest revenue
₹92 CrDec 2025Latest net profit
₹8.22 CrDec 2025Latest EPS
₹5.26Dec 2025Net margin
-1.1%Dec 2025Performance
Bars show revenue and net profit. The line shows net margin.
- Revenue
- Net income
- Net margin %
Earnings
Revenue is shown in crores. EPS is rupees per share.
- Revenue
- EPS
Revenue to profit conversion
Bridge from operating numbers to profit for the latest reported period.
Latest reported period: Dec 2025
Debt level and coverage
Debt, cash and free cash flow compared on the same crore scale.
- Debt
- Free cash flow
- Cash & equivalents
Results
| Metric | Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 123 | 124 | 106 | 115 | 100 | 114 | 111 | 97.48 | 114 | 101 | 104 | 91.82 |
| Expenses | 109 | 101 | 90.39 | 101 | 94.97 | 104 | 102 | 89.7 | 104 | 94.89 | 97.23 | 91.19 |
| Operating Profit | 13.21 | 21.23 | 13.89 | 12.41 | 4.09 | 8.46 | 7.65 | 6.4 | 7.95 | 4.68 | 5.53 | -0.99 |
| OPM % | 10.7% | 17.18% | 13.15% | 10.81% | 4.07% | 7.43% | 6.9% | 6.57% | 6.97% | 4.63% | 5.3% | -1.08% |
| Other Income | 11.54 | 3.99 | 8.49 | 8.83 | 10.6 | 8.24 | 10.06 | 4.5 | 1.14 | 11.87 | 5.54 | 11.8 |
| Interest | 0.2 | 0.11 | 0.19 | 0.19 | 0.34 | 0.23 | 0.23 | 0.26 | 0.24 | 0.23 | 0.25 | 0.23 |
| Depreciation | 1.39 | 1.32 | 1.38 | 1.38 | 1.37 | 1.37 | 1.39 | 1.38 | 2.25 | 1.59 | 1.61 | 1.62 |
| Profit before tax | 24.55 | 25.11 | 22.19 | 21.05 | 14.35 | 16.47 | 17.48 | 10.64 | 8.85 | 16.32 | 10.82 | 10.58 |
| Tax % | 20.53% | 21.43% | 31.55% | 21.57% | 24.88% | 15.54% | 16.93% | 27.54% | 39.89% | 21.51% | -20.33% | 22.31% |
| Net Profit | 19.51 | 19.73 | 15.19 | 16.51 | 10.78 | 13.91 | 14.52 | 7.71 | 5.32 | 12.81 | 13.02 | 8.22 |
| EPS in Rs | 10.54 | 12.64 | 9.73 | 9.46 | 9.17 | 8.91 | 9.30 | 4.94 | 3.21 | 8.21 | 8.34 | 5.26 |
All values in Rs. Crore unless otherwise stated. Source: CMIE Prowess, Quarterly Interim Standalone.