PDMJEPAPER - Pudumjee Paper

📊 NSE: PDMJEPAPER 🏢 Paper 📅 Last Updated: 12/14/2025 11:22

💰 Financial Performance

Revenue Growth by Segment

Total revenue grew by 3.07% YoY to INR 809.08 Cr in FY25 from INR 784.96 Cr in FY24. The Hygiene Products division grew 6.32% YoY, reaching INR 57.84 Cr compared to INR 54.40 Cr in the previous year.

Geographic Revenue Split

Not disclosed in available documents, though the company maintains a 30-40% share in various sub-segments of the domestic speciality paper industry.

Profitability Margins

Operating margins remained healthy between 15.47% and 17.35% over the last two fiscals. Net Profit Before Tax stood at INR 128.72 Cr in FY25, a slight decrease from INR 131.65 Cr in FY24.

EBITDA Margin

EBITDA margin was 17.9% (INR 145.04 Cr) in FY25, compared to 19.0% (INR 149.42 Cr) in FY24. The slight compression is attributed to the cyclical nature of the industry and raw material price volatility.

Capital Expenditure

The company has planned a large capital expenditure of INR 1,350 Cr over the next five years to add speciality paper manufacturing capacity at Mahad. Historical capex includes recent investments in boilers, solar power, and headbox upgrades.

Credit Rating & Borrowing

Long-term rating is CRISIL A/Positive and short-term rating is CRISIL A1. Borrowing costs are low as evidenced by an interest coverage ratio of 41.10 times in FY25, improved from 26.28 times in FY24 due to loan repayments.

⚙️ Operational Drivers

Raw Materials

Imported wood pulp and wastepaper are the primary raw materials, accounting for approximately 60% of the total cost of sales.

Import Sources

Raw materials are sourced from international markets (imported wood pulp) and domestic channels (wastepaper).

Capacity Expansion

Current operations are based in Pune on leased land. Planned expansion at Mahad involves an investment of INR 1,350 Cr over 5 years to overcome site limitations at the current Pune facility.

Raw Material Costs

Raw material costs represent 60% of revenue. The company uses a pass-through mechanism with a time lag and moderate inventory levels to mitigate the impact of highly volatile global pulp prices.

Manufacturing Efficiency

Return on Capital Employed (ROCE) was 29% in FY24. Volumetric sales growth of 10% in FY24 was driven by improved capacity utilization.

Logistics & Distribution

The company utilizes a network of distributors and direct consumers to reach a large clientele, though specific distribution costs as a % of revenue are not disclosed.

📈 Strategic Growth

Expected Growth Rate

10%

Growth Strategy

Growth will be driven by a massive INR 1,350 Cr capacity expansion at Mahad over 5 years. The strategy focuses on the speciality paper segment where the company holds a 30-40% market share, emphasizing customized products (glassine, greaseproof) to maintain high margins and differentiate from commodity paper players.

Products & Services

Speciality paper products including glassine, opaque laminating base, kraft paper, tissue, greaseproof paper, crepe tissue, machine glazed poster paper, printing paper, and hygiene products.

Brand Portfolio

Pudumjee, Pudumjee Hygiene.

New Products/Services

Customized speciality paper grades for specific industrial applications; expected to sustain operating margins between 11.5% and 17.0%.

Market Expansion

Expansion into the Mahad region to bypass physical growth constraints at the current Pune site, targeting increased domestic and potentially export volumes.

Market Share & Ranking

Holds a 30-40% market share in various sub-segments of the domestic speciality paper industry.

Strategic Alliances

The company operates on land and buildings leased from AMJ Land Holdings Ltd and 3P Land Holdings Ltd under leave and license agreements.

🌍 External Factors

Industry Trends

The industry is characterized by cyclicality and intense competition. There is a shift toward organized players enhancing capacities and a steady demand for speciality grades like hygiene and tissue paper.

Competitive Landscape

Competes with large domestic players in writing, printing, and hygiene segments, as well as significant pressure from international imports.

Competitive Moat

Durable advantages include a 30-40% market share in speciality niches, five decades of promoter experience, and deep customization capabilities that act as a barrier to entry for commodity manufacturers.

Macro Economic Sensitivity

Sensitive to global pulp price cycles and domestic GDP growth; the Indian government's INR 11.21 lakh Cr infrastructure capex is expected to indirectly support industrial paper demand.

Consumer Behavior

Increasing demand for hygiene products and specialized packaging (glassine/greaseproof) is driving volumetric growth.

Geopolitical Risks

Vulnerability to global trade dynamics as imports account for 50-60% of the domestic speciality paper market, creating a ceiling on domestic pricing.

⚖️ Regulatory & Governance

Industry Regulations

Subject to standard manufacturing and pollution norms; the company monitors risks through a Board-adopted Risk Management Policy.

Environmental Compliance

The company is investing in solar power and efficient boilers to meet internal sustainability goals and likely regulatory standards, though specific ESG costs are not listed.

Taxation Policy Impact

Not specifically disclosed, but the company maintains a healthy financial profile with steady accretion to reserves.

Legal Contingencies

The company was fined INR 88,000 plus GST by both BSE and NSE (total INR 176,000+) in March 2025 for non-compliance with Regulation 17(1A) regarding the appointment of a director over 75 years of age.