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Andhra Paper Ltd Stock Analysis

Small Cap
Evaluated by 793 users | BSE: 502330 | NSE: ANDHRAPAP |
Paper & Paper Products
International Paper APPM Limited  previously known as Andhra Pradesh Paper Mills (APPM) was incorporated in 1964 to manufacture paper. The company is part of L N Bangur group which have business interest in area of textile manufacturing, tea plantation, wind energy generation and trading...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Andhra Paper Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Mar'11Dec'11Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 7.42%-4.94%3.12%-1.11%2.85%4.53%8.46%13.64%27.08%24.52%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 7827949841,0921,1631,1601,1721,2641,4271,270
Y-o-Y Gr. Rt.-1.5%24%10.9%6.6%-0.3%1.1%7.8%12.9%-11%
Adjusted EPS (Rs.) 10.36-23.6-1.94-10.26-1.053.4112.8823.0751.3353.46
Y-o-Y Gr. Rt.--327.8%NANANANA277.7%79.1%122.5%4.2%
Book Value per Share (Rs.) 145.42161.191.89104.4104.11113.39120.18141.82192.06245.37
Adjusted Net Profit 41.2-93.9-7.7-40.8-4.213.651.291.8204213
Net Op. Cash Flow (Rs. Cr.) 12592.713920.4128111172215310177
Debt to Cash Flow from Ops 2.326.872.5827.73.924.282.10.970.050.06
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Andhra Paper Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 5.5%1.8%2.7%-11%
Adjusted EPS 20%NA60.7%4.2%
Book Value per Share 618.726.927.8
Share Price 5.5% -1% -5.7% 12.3%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Dec'11Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 7.62-13.3-2.06-9.36-1.013.1311.0317.6130.7524.44
Operating Profit Margin (%) 18.9217.949.785.818.2111.2914.5317.8826.6523.96
Net Profit Margin (%) 5.27-11.83-0.78-3.74-0.361.174.377.2614.316.74
Debt to Equity 0.50.990.981.361.211.060.760.370.020.01
Working Capital Days 11518497117119124119108114161
Cash Conversion Cycle 2257233037483721719
Entity Percentage Holding
Promoters 72.20%
Institutions 12.17%
Non-Institutions 15.63%
Pledged *0.000.000.000.000.0055.3255.3268.0070.6470.64
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Andhra Paper Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Andhra Paper Ltd is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Andhra Paper Ltd's performance infers:

Andhra Paper Ltd earnings have grown by 0%, whereas share price has depreciated -1% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Andhra Paper Ltd share prices over the last 10 years. Here is what we found out:

Andhra Paper Ltd share price has depreciated 5.3% annually over the past ten years.

International Paper APPM Limited  previously known as Andhra Pradesh Paper Mills (APPM) was incorporated in 1964 to manufacture paper. The company is part of L N Bangur group which have business interest in area of textile manufacturing, tea plantation, wind energy generation and trading and investment business. In 2001, Andhra Pradesh Paper Mills acquired Coastal Papers.

Company owns two manufacturing facilities having a cumulative production capacity of 1,74,500 TPA. Company

International Paper APPM Limited  previously known as Andhra Pradesh Paper Mills (APPM) was incorporated in 1964 to manufacture paper. The company is part of L N Bangur group which have business interest in area of textile manufacturing, tea plantation, wind energy generation and trading and investment business. In 2001, Andhra Pradesh Paper Mills acquired Coastal Papers.

Company owns two manufacturing facilities having a cumulative production capacity of 1,74,500 TPA. Company owns eight paper machines. It manufactures paper of M.F and M.G quality in the range of 21 to 250 GSM. Company uses raw materials such as Casuarina, Subabul, Eucalyptus, Mixed Hard Woods and Bamboo.

The company manufactures paper of various grades such as writing, printing, industrial, newsprint and copier. APPM has also set up a 34 MW Double Extraction Condensing type turbine to meet its power requirements.

In 2011, The Andhra Pradesh Paper Mills Ltd. was acquired by International Paper (IP), a $30 billion American pulp and paper company founded in 1898. In the first significant domestic acquisition by a foreign paper company, IP bought 75% stake in the company. IP is the largest pulp and paper company in the world, with approximately 61,500 employees across 24 countries. It is headquartered in Memphis, Tennessee, USA. 

In December, 2013, the company was renamed to “International Paper APPM Limited”. The name change intended to recognize the parentage of International Paper, while maintaining the link to the history and positioning of the Andhra Paper Mills brand. This is also to ensure that we direct future investments in brand-building around the IP brand leveraging our global presence and technology.

Company has clientele namely MODI XEROX, INDO NATIONAL, MacMillan, Navaneet Publications and many more.

Company exports to countries that include were Angola, Bangladesh, Egypt, Nigeria, Sri Lanka, United Arab Emirates and Yemen.

Awards

APPM received Best Management Award - 2005 for the outstanding contribution in the maintenance of industrial relations, labour welfare and productivity from the Government of Andhra Pradesh.

Company received Gold Award in the paper sector as recognition of its outstanding achievement in safety management awarded by the Greentech Foundation.

Company received ISO 9001:2000 certification for its quality management

Milestones
2000
Acquired Coastal Paper
2010
Started PM6 Paper Machine.
Andhra Pradesh Paper Mills Ltd awarded 'FSC Certification' for promoting responsible raw material management.
2011
The Andhra Pradesh Paper Mills Ltd. was acquired by International Paper (IP)
2013
The company was renamed to “International Paper APPM Limited”.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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