WEBSITE BSE:544267 NSE: SUBAM Inc. Year: 2004 Industry: Paper & Paper Products My Bucket: Add Stock
Last updated: 10:22
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1. Business Overview
Subam Papers Ltd. is an Indian company primarily engaged in the manufacturing and sale of paper and paper products. The core business involves converting raw materials (such as wood pulp, agro-residue, or waste paper) into various grades of paper. The company typically generates revenue by selling these finished paper products to a diverse customer base, which may include publishers, printers, packaging companies, educational institutions, and corporate clients, serving both domestic and potentially international markets.
2. Key Segments / Revenue Mix
Without specific financial disclosures, the exact revenue mix for Subam Papers Ltd. is not available. However, typical segments within the paper industry include Writing & Printing Paper (for notebooks, textbooks, office stationery), Packaging Paper (for corrugated boxes, cartons, multi-wall bags), and Specialty Paper (for industrial applications, label stock, security paper). Given its general classification, Subam Papers likely operates within one or more of these common segments.
3. Industry & Positioning
The Indian Paper & Paper Products industry is diverse, comprising both large integrated players and numerous small to medium-sized mills. It is a largely cyclical industry influenced by raw material availability (wood, agro-residue, recycled fiber), energy costs, and demand from education, packaging, and publishing sectors. Subam Papers Ltd. likely operates as a regional or niche player within this competitive landscape, competing on factors such as product quality, cost-effectiveness, distribution network, and customer relationships against both domestic and international manufacturers. Its precise positioning (e.g., market share, product specialization) is not publicly detailed.
4. Competitive Advantage (Moat)
The paper industry, particularly for undifferentiated products, is largely a commodity business where strong, durable competitive advantages are challenging to build for smaller players. Potential advantages for Subam Papers could stem from:
Cost Efficiency: Superior operational efficiency, access to low-cost raw materials, or energy-efficient manufacturing processes.
Geographic Advantage: Proximity to key raw material sources or major demand centers, reducing logistics costs.
Product Specialization: Focus on niche paper grades that command better pricing or face less intense competition.
Customer Relationships: Long-standing relationships and consistent quality that foster loyalty among a dedicated customer base. However, a significant, wide moat is not readily apparent in this industry segment without specific company details.
5. Growth Drivers
Key factors that could drive growth for Subam Papers Ltd. over the next 3-5 years include:
Increasing Literacy & Education: Growing demand for writing and printing paper driven by India's expanding population and focus on education.
E-commerce & FMCG Growth: Surging demand for packaging paper due to the rapid expansion of e-commerce and Fast-Moving Consumer Goods (FMCG) sectors.
Urbanization & Consumerism: General economic growth leading to higher consumption of packaged goods and various paper products.
Capacity Expansion: Successful expansion of manufacturing capacity or modernization of existing facilities to meet growing demand.
Product Diversification: Entry into new, higher-value specialty paper segments.
Sustainability Trends: Growing preference for eco-friendly and recycled paper products, aligning with global sustainability initiatives.
6. Risks
Raw Material Price Volatility: Fluctuations in the cost and availability of key raw materials like wood pulp, agro-residue, waste paper, and chemicals.
Energy Costs: High and volatile power and fuel costs, which are significant operational expenses for paper mills.
Environmental Regulations: Increasingly stringent environmental norms regarding pollution, water usage, and forest management, potentially leading to higher compliance costs.
Import Competition: Threat from cheaper imports, particularly from countries with lower production costs or export subsidies, affecting pricing power.
Economic Slowdown: A general economic downturn can reduce demand across various end-use segments for paper products.
Technological Shifts: While packaging remains strong, increased digitalization can impact demand for certain writing and printing paper grades.
7. Management & Ownership
Subam Papers Ltd., like many Indian companies, is likely promoter-driven, meaning the founding family or a core group of individuals hold significant ownership stakes and exert substantial influence over strategic direction and daily operations. The quality of management would depend on their experience in the paper industry, operational efficiency, strategic vision, and ability to navigate market cycles and regulatory changes. Specific details on individual management profiles and exact ownership structure are not provided.
8. Outlook
The outlook for Subam Papers Ltd. is balanced by the cyclical nature of the paper industry against underlying demand growth drivers in India. On the positive side, robust growth in sectors like education, packaging, and e-commerce provides a strong demand tailwind for paper products. A well-managed company with efficient operations, access to raw materials, and a focus on high-demand or niche products could benefit from this expansion. However, the industry is prone to significant risks including raw material price volatility, high energy costs, intense competition, and evolving environmental regulations. The company's ability to maintain cost leadership, innovate, manage its supply chain effectively, and adapt to sustainability trends will be crucial for sustained performance in the long term.
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Market Cap ₹626 Cr.
Stock P/E 23.3
P/B 1.6
Current Price ₹228
Book Value ₹ 139.7
Face Value 10
52W High ₹244
Dividend Yield 0%
52W Low ₹ 70.8
Price goes above X
Price falls below X
PE goes above X
PE falls below X
₹ | |
| #(Fig in Cr.) | Dec 2025 |
|---|---|
| Net Sales | 146 |
| Other Income | 1 |
| Total Income | 146 |
| Total Expenditure | 137 |
| Operating Profit | 9 |
| Interest | 5 |
| Depreciation | 4 |
| Exceptional Income / Expenses | 0 |
| Profit Before Tax | 0 |
| Provision for Tax | 1 |
| Profit After Tax | -0 |
| Adjustments | 1 |
| Profit After Adjustments | 0 |
| Adjusted Earnings Per Share | 0.1 |
| #(Fig in Cr.) | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | TTM |
|---|---|---|---|---|---|
| Net Sales | 329 | 508 | 494 | 539 | 146 |
| Other Income | 3 | 2 | 3 | 7 | 1 |
| Total Income | 333 | 511 | 497 | 546 | 146 |
| Total Expenditure | 288 | 476 | 428 | 473 | 137 |
| Operating Profit | 44 | 34 | 70 | 73 | 9 |
| Interest | 3 | 15 | 18 | 20 | 5 |
| Depreciation | 7 | 16 | 13 | 16 | 4 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax | 34 | 4 | 39 | 37 | 0 |
| Provision for Tax | 9 | 4 | 11 | 10 | 1 |
| Profit After Tax | 25 | -1 | 28 | 27 | 0 |
| Adjustments | 1 | 0 | 0 | -0 | 1 |
| Profit After Adjustments | 26 | -0 | 29 | 27 | 0 |
| Adjusted Earnings Per Share | 16 | -0.2 | 17.6 | 11.5 | 0.1 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | 9% | 18% | 0% | 0% |
| Operating Profit CAGR | 4% | 18% | 0% | 0% |
| PAT CAGR | -4% | 3% | 0% | 0% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | 129% | NA% | NA% | NA% |
| ROE Average | 10% | 8% | 10% | 10% |
| ROCE Average | 13% | 12% | 12% | 12% |
| #(Fig in Cr.) | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|
| Shareholder's Funds | 166 | 166 | 200 | 320 |
| Minority's Interest | 0 | 0 | 0 | 0 |
| Borrowings | 100 | 98 | 88 | 76 |
| Other Non-Current Liabilities | 3 | 7 | 13 | 18 |
| Total Current Liabilities | 126 | 143 | 161 | 164 |
| Total Liabilities | 394 | 414 | 461 | 578 |
| Fixed Assets | 127 | 219 | 228 | 243 |
| Other Non-Current Assets | 73 | 20 | 37 | 61 |
| Total Current Assets | 190 | 175 | 197 | 274 |
| Total Assets | 394 | 414 | 461 | 578 |
| #(Fig in Cr.) | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|
| Opening Cash & Cash Equivalents | 5 | 8 | 8 | 11 |
| Cash Flow from Operating Activities | -3 | 69 | 38 | 32 |
| Cash Flow from Investing Activities | -134 | -60 | -38 | -61 |
| Cash Flow from Financing Activities | 140 | -9 | 3 | 55 |
| Net Cash Inflow / Outflow | 2 | -0 | 3 | 26 |
| Closing Cash & Cash Equivalent | 8 | 8 | 11 | 37 |
| # | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|
| Earnings Per Share (Rs) | 15.97 | -0.16 | 17.6 | 11.5 |
| CEPS(Rs) | 19.44 | 9.39 | 25.33 | 18.62 |
| DPS(Rs) | 0 | 0 | 0 | 0 |
| Book NAV/Share(Rs) | 99.09 | 101.75 | 122.66 | 137.69 |
| Core EBITDA Margin(%) | 11.56 | 6.09 | 13.4 | 12.27 |
| EBIT Margin(%) | 10.62 | 3.5 | 11.47 | 10.53 |
| Pre Tax Margin(%) | 9.7 | 0.71 | 7.89 | 6.86 |
| PAT Margin (%) | 7.06 | -0.13 | 5.72 | 4.98 |
| Cash Profit Margin (%) | 8.94 | 2.91 | 8.35 | 8.03 |
| ROA(%) | 6.33 | -0.17 | 6.46 | 5.17 |
| ROE(%) | 15.48 | -0.42 | 15.47 | 10.34 |
| ROCE(%) | 11.85 | 5.69 | 15.92 | 13.09 |
| Receivable days | 91.63 | 63.82 | 76.08 | 84.28 |
| Inventory Days | 58.25 | 34.29 | 36.79 | 36.93 |
| Payable days | 93.71 | 63.68 | 90.16 | 66.63 |
| PER(x) | 0 | 0 | 0 | 8.12 |
| Price/Book(x) | 0 | 0 | 0 | 0.68 |
| Dividend Yield(%) | 0 | 0 | 0 | 0 |
| EV/Net Sales(x) | 0.45 | 0.31 | 0.35 | 0.64 |
| EV/Core EBITDA(x) | 3.38 | 4.57 | 2.5 | 4.71 |
| Net Sales Growth(%) | 0 | 54.37 | -2.84 | 9.17 |
| EBIT Growth(%) | 0 | -51.1 | 208.4 | 0.24 |
| PAT Growth(%) | 0 | -102.74 | 4234.32 | -4.89 |
| EPS Growth(%) | 0 | -101.03 | 0 | -34.68 |
| Debt/Equity(x) | 0.97 | 0.98 | 0.92 | 0.51 |
| Current Ratio(x) | 1.51 | 1.23 | 1.22 | 1.67 |
| Quick Ratio(x) | 1.06 | 0.93 | 0.87 | 1.35 |
| Interest Cover(x) | 11.53 | 1.25 | 3.2 | 2.87 |
| Total Debt/Mcap(x) | 0 | 0 | 0 | 0.76 |
| # | Sep 2024 | Mar 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|
| Promoter | 69.67 | 69.67 | 69.67 | 69.67 | 58.93 |
| FII | 6.12 | 2.31 | 1.31 | 0.31 | 0.19 |
| DII | 5.06 | 3.66 | 3.05 | 3.43 | 4.57 |
| Public | 19.15 | 24.37 | 25.89 | 26.24 | 36.02 |
| Others | 0 | 0 | 0.09 | 0.35 | 0.3 |
| Total | 100 | 100 | 100 | 100 | 100 |
| # | Sep 2024 | Mar 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|
| Promoter | 1.62 | 1.62 | 1.62 | 1.62 | 1.62 |
| FII | 0.14 | 0.05 | 0.03 | 0.01 | 0.01 |
| DII | 0.12 | 0.09 | 0.07 | 0.08 | 0.13 |
| Public | 0.45 | 0.57 | 0.6 | 0.61 | 0.99 |
| Others | 0 | 0 | 0 | 0.01 | 0.01 |
| Total | 2.32 | 2.32 | 2.32 | 2.32 | 2.75 |
* The pros and cons are machine generated.
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