Shares of this micro-cap company, engaged in Kraft paper manufacturing and investments in shares, securities, and loans, surged nearly 15 percent after posting a 274 percent quarter-on-quarter net profit growth in the December quarter.
Price Action
On Thursday, Genus Paper & Boards Ltd‘s stock hit an intra-day high of Rs.20.99 apiece, rising 16.08 percent from its previous close of Rs.18.34. It later retreated to Rs.19.39 per share. Over the past five years, the stock has gained over 260 percent.
Earnings Report
Genus Paper & Boards Ltd witnessed a significant rise in its stock price, primarily driven by strong growth in both revenue and net profit, as reflected in its financial results.
In Q3 FY25, the company’s standalone net profit surged 274 percent quarter-on-quarter to Rs.1.57 crore, compared to Rs.0.42 crore in Q2 FY25. On a year-over-year basis, net profit grew 106 percent from Rs.0.76 crore in Q3 FY24.
Revenue for the quarter stood at Rs.209.6 crore, showing a slight dip from Rs.210.1 crore in Q2 FY25 but marking a strong 47 percent year-over-year increase from Rs.142.7 crore in Q3 FY24.
Currently, Genus Paper & Boards Ltd is trading at a Price-to-Earnings ratio of 148, significantly higher than the industry average of 13.9. In terms of return ratios, the Return on Capital Employed (ROCE) is 4.34 percent, while the Return on Equity (ROE) stands at 0.74 percent.
Segmental Revenue Distribution
Genus Paper & Boards Ltd reported its segment-wise revenue for the latest quarter, with the Paper Business contributing approximately 98 percent of the total revenue. The Coke Business accounted for around 2 percent. This breakdown highlights the company’s strong dependence on its core paper manufacturing operations while maintaining a smaller presence in the coke segment.
Manufacturing Overview
Genus Paper & Boards Limited is an India-based company, which is engaged in the business of manufacturing Kraft Paper and M. S. Ingot. The Company’s segments include Kraft Paper Business, Coke Business and Strategic Investment Activity.
The Company offers a range of Kraft papers varying from 100 grams per square meter to 400 grams per square meter. Strategic Investment Activity segment is engaged in making investments in shares and securities and loans basis a thorough and systematic evaluation by the Company and the management. The Company’s wholly owned subsidiary includes Genus Paper and Coke Limited.
Written by – Siddesh S Raskar
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