Andhra Paper Ltd Stock Analysis

BSE: 502330 | NSE: ANDHRAPAP | Paper & Paper Products | Small Cap

BSE Share Price 23-Sep-2022 18:01
441.80 -12.60 (-2.77%)

DeciZen - Make an Informed Decision on Andhra Paper

Overall Rating

1. Quality

2. Valuation

Fair

3. Price Trend

Semi Strong

Andhra Paper Price Chart

P/E Ratio (SA) :
8.85
Market Cap :
1,757 Cr.
52-wk low :
201.1
52-wk high :
510
Bole Toh?

1. Is Andhra Paper Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Andhra Paper Ltd is a average quality company.

2. Is Andhra Paper Ltd undervalued or overvalued?

The key valuation ratios of Andhra Paper Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Andhra Paper Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Andhra Paper Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Andhra Paper:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

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 performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 3.1%-1.1%2.9%4.5%8.5%13.6%27.1%24.5%0.1%13.3%-
Value Creation Index -0.8-1.1-0.8-0.7-0.4-0.00.90.8-1.0-0.1-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 9841,0921,1631,1601,1721,2641,4271,2708871,3801,574
YoY Gr. Rt. %-10.9%6.6%-0.3%1.1%7.8%12.9%-11%-30.2%55.7%-
Adj EPS -1.9-10.3-1.13.412.923.151.353.5-0.53549.9
YoY Gr. Rt. %-NANANA277.7%79.1%122.5%4.2%-100.9%NA-
BVPS (₹) 91.9104.4104.1113.4120.2141.8192.1245.4245.2275.1296.5
Adj Net Profit -7.7-40.8-4.213.651.291.8204213-1.9139199
Cash Flow from Ops. 13920.4128111172215310177104202-
Debt/CF from Ops. 2.627.73.94.32.110.10.10.30.3-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 3.8%3.3%-1.1%55.7%
Adj EPS NA22.2%-12%NA
BVPS 131812.712.2
Share Price 2.3% 8.8% 0.9% 93.3%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % -2.1-9.4-13.11117.630.824.5-0.213.517.5
Op. Profit Mgn % 9.85.88.211.314.517.926.7246.916.219.2
Net Profit Mgn % -0.8-3.7-0.41.24.47.314.316.8-0.210.112.6
Debt to Equity 11.41.21.10.80.40000.1-
Working Cap Days 991191191241191081141612441680
Cash Conv. Cycle 23303748372171947190

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 17.50%

Sales growth is good in last 4 quarters at 64.44%

Sales growth has been subdued in last 3 years -1.11%

Net Profit has been subdued in last 3 years -11.95%

Latest Financials - Andhra Paper Ltd.

Standalone Consolidated
TTM EPS (₹) 49.9 -
TTM Sales (₹ Cr.) 1,574 -
BVPS (₹.) 296.5 -
Reserves (₹ Cr.) 1,139 -
P/BV 1.49 -
PE 8.85 -
From the Market
52 Week Low / High (₹) 201.10 / 509.95
All Time Low / High (₹) 21.44 / 591.15
Market Cap (₹ Cr.) 1,757
Equity (₹ Cr.) 39.8
Face Value (₹) 10
Industry PE 11.2

Management X-Ray of Andhra Paper :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *55.3268.0070.6470.6470.6470.6470.6470.640.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Andhra Paper

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

About Andhra Paper Ltd

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”.

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