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Check Before You Invest : Andhra Paper Ltd

BSE: 502330 NSE: ANDHRAPAP ISIN: INE435A01051
  |   Sector:  Paper & Stationary   |   Industry:  Paper & Paper Products

Snapshot

Q.1 Which industry/sub-sector does Andhra Paper Ltd belong to?
Andhra Paper Ltd belongs to the Paper & Stationary sector, operating specifically within the Paper & Paper Products segment.
Q.2 Is Andhra Paper Ltd a good quality company?
Andhra Paper Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Andhra Paper Ltd undervalued or overvalued?
Andhra Paper Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Andhra Paper Ltd a good buy now?
Andhra Paper Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Andhra Paper Ltd?
Andhra Paper Ltd revenue growth is -14.4% for FY-2025 , which is below its 5 year CAGR of 4% , indicating slower growth.
Q.2 Gross Profit margin of Andhra Paper Ltd?
Andhra Paper Ltd Gross profit margin which is the profit after deduction of direct costs, is 13.3% for FY-2025 , which is below its 5 year median of 18.9% , indicating decreasing margins.
Q.3 Operating Profit Margin of Andhra Paper Ltd?
Andhra Paper Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.05% for FY-2025 , which is below its 5 year median of 16.23% indicating decreasing margins.
Q.4 Net Profit Margin of Andhra Paper Ltd?
Andhra Paper Ltd Net Profit Margin is 5.77% for FY-2025 , is below with its 5 year median of 10.12%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 13.3 18.9
Operating Profit Margin 9.05 16.23
Net Profit Margin 5.77 10.12
Q.5 Return on Asset of Andhra Paper Ltd?
Andhra Paper Ltd Return on Asset is 2.95%, which is below its 5 year historical median of 8.65%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Andhra Paper Ltd?
Andhra Paper Ltd Return on equity is 4.64% for FY-2025 , which is below its historical median of 13.51%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Andhra Paper Ltd?
Andhra Paper Ltd Return on capital employed is 6.4% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Andhra Paper Ltd?
Andhra Paper Ltd Cash conversion cycle is 35 days, above its historical median of 19 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.51 0.67
ROE 4.64 13.51
ROCE 6.4 18.03
Cash Conversion Cycle 35 days 19 days
Q.9 Debt to Equity ratio of Andhra Paper Ltd?
Andhra Paper Ltd Debt-to-Equity ratio is 0.14 , which is lower with the industry average of 0.47 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Andhra Paper Ltd?
Andhra Paper Ltd Debt to cash flow from operations is -5.01 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Andhra Paper Ltd?
Promoters hold 72.45% of the Andhra Paper Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Andhra Paper Ltd vs industry peers?
Andhra Paper Ltd revenue CAGR is 3.95% , compared to the industry median CAGR of 5.29% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 1,541.2 233.9
Gross Profit 205 5.1
Operating Profit 135 7
Net Profit 89 2.8
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.51 0.91
ROE 4.64 3.9
ROCE 6.4 7.42
Cash Conversion Cycle (days) 35.28 47

Valuation & price assessment

Q.1 Stock return of Andhra Paper Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 1% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 1% 10% -9.9% -10.3%
Q.3 Valuation ratios of Andhra Paper Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 72.36 6.89 18.72
Price to Book 0.7 0.92 0.88
Price to Sales 0.86 0.86 0.69
EV to EBITDA 10.93 3.71 6.41

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