Andhra Paper Ltd. (ANDHRAPAP) AI Stock Analysis

• Market Cap: ₹12.15B
• Dividend Yield: 1.48%
• Average Volume (3M): 14.73K
• Price to Earnings (P/E): 33.9
• Beta (1Y): 0.93
• Revenue Growth: -2.55%
• EPS Growth: -89.20%
• Country: IN
• Employees: 1,991
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 0.49
• Shares Outstanding: 198,850,190
• 10 Day Avg. Volume: 14,028
• 30 Day Avg. Volume: 14,732
• PEG Ratio: -0.22
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.94
• P/FCF Ratio: -4.52
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: ₹62.00 ▼(-8.00% Downside)
• Action: Reiterated Date: 11/19/25
• Date: Action: Reiterated 11/19/25

The overall stock score reflects significant challenges in financial performance, particularly in cash flow and profitability. Technical analysis indicates bearish momentum, with the stock being oversold. The high P/E ratio suggests overvaluation, which, combined with a modest dividend yield, limits attractiveness. The strong balance sheet provides some resilience, but liquidity issues need addressing for long-term stability.

Positive Factors

Strong balance sheet

A high equity ratio (~74.5%) and very low debt-to-equity (~0.15) give the company durable financial resilience. Low leverage reduces bankruptcy risk, preserves borrowing capacity for capex or working capital, and cushions cyclical downturns common in pulp & paper.

Integrated manufacturing and diversified customers

Vertical integration and an established customer base (publishers, printers, office-stationery channels) support stable throughput and capture more margin along the value chain. Diversified industrial demand reduces single-customer concentration risk over months.

Solid gross margin

A ~31% gross margin provides structural buffer to absorb raw-material and energy cost swings. Sustained mid-30s-like gross margins indicate underlying operational efficiency and pricing power in core paper grades, supporting medium-term profitability if costs are managed.

Negative Factors

Negative operating cash flow

Negative operating cash flow is a durable red flag: it constrains the firm's ability to fund routine working capital, maintenance capex, and debt servicing without external financing. Persistent negative OCF can force asset sales or dilution if not reversed.

Declining net and operating margins

Falling net, EBIT and EBITDA margins signal eroding operational profitability, likely from input cost pressure or pricing limits. Margin compression reduces free cash generation and lowers the company's ability to invest or absorb shocks over the medium term.

Sharp EPS decline

An ~84% decline in EPS reflects substantial earnings stress or one-off impacts that materially weaken return on capital. Such a large drop undermines reinvestment capacity and shareholder returns, and may signal deeper operational or demand issues that persist.

Andhra Paper Ltd. Business Overview & Revenue Model

Company Description

Andhra Paper Limited manufactures, sells, and exports paper and pulp products in India and internationally. The company offers writing, printing, copier, and specialty paper products; paperboards; and cut-size paper products, such as office documentation and multipurpose sheets. Its products are used in account books, annual reports, bills, blade wrapping, book printing, brochures, calendars, cash books, challans, children books, computer forms, covers, diaries, envelopes, files/folders, foil laminates, forms, greeting cards, inkjet printing, invoices, carry bags, variable data printing, journals, labels, leaflets, lottery and laser printing, magazine covers, magazines, notebooks, novels, pamphlets, paper cups, picture posters, plotter rolls, photocopying, soap wrappers, stationery, textbooks, tickets, wedding cards, writing pads, and pizza boxes with inner liners, as well as base paper for chromos/art papers/artboards, and pharma inserts. The company was formerly known as International Paper APPM Limited and changed its name to Andhra Paper Limited in January 2020. The company was incorporated in 1964 and is based in Andhra Pradesh, India. Andhra Paper Limited is a subsidiary of West Coast Paper Mills Limited.

How the Company Makes Money

Andhra Paper Ltd. primarily makes money by manufacturing and selling paper products. Its core revenue stream is the sale of finished paper (notably printing and writing grades) to downstream customers such as publishers, printers, office-stationery/convertor channels, and other institutional buyers, with revenue recognized based on contracted volumes and realized selling prices. The company’s earnings are influenced by (i) sales mix across paper grades, (ii) pricing cycles for paper, (iii) input-cost management for key raw materials and utilities (including fiber/wood, chemicals, power and fuel), and (iv) operating efficiency and capacity utilization at its manufacturing facilities. null

Andhra Paper Ltd. Financial Statement Overview

Summary

Andhra Paper Ltd. faces challenges with declining revenues and profitability margins, as reflected in its income statement. The balance sheet is strong, with a solid equity base and low leverage, which is positive. However, the cash flow statement reveals liquidity issues that could pose risks if not improved.

Income Statement

Andhra Paper Ltd. has shown fluctuating revenue and profitability over the years. The TTM gross profit margin is approximately 31.4%, which is solid, though it has decreased from prior periods. The net profit margin is approximately 5.8%, reflecting profitability, but it has declined compared to previous years. Revenue growth has been inconsistent, with a significant drop in the latest period. EBIT and EBITDA margins are also decreasing, indicating potential operational challenges.

Balance Sheet

The company maintains a strong equity position with an equity ratio of approximately 74.5%. The debt-to-equity ratio remains low at around 0.15, indicating low financial leverage. Return on equity is approximately 4.6%, which is modest. The overall balance sheet shows stability, with high stockholders' equity compared to total assets, providing a cushion against potential liabilities.

Cash Flow

Operating cash flow has turned negative in the latest period, which is concerning. Free cash flow has also decreased dramatically, indicating potential liquidity challenges. The free cash flow to net income ratio is negative, suggesting the company is not generating sufficient cash relative to its net income. These cash flow challenges could impact future operations if not addressed.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	15.49B	15.41B	18.01B	20.98B	13.67B	8.87B
Gross Profit	5.67B	4.84B	6.94B	10.31B	5.29B	3.02B
EBITDA	570.28M	1.35B	5.26B	7.69B	2.65B	716.99M
Net Income	205.46M	889.11M	3.40B	5.22B	1.40B	-45.99M
Balance Sheet
Total Assets	25.63B	26.05B	24.51B	20.05B	14.98B	13.33B
Cash, Cash Equivalents and Short-Term Investments	6.58B	7.52B	8.78B	7.53B	2.95B	1.91B
Total Debt	2.63B	2.83B	1.14B	548.80M	585.87M	436.21M
Total Liabilities	6.37B	6.64B	5.58B	4.23B	4.04B	3.57B
Stockholders Equity	19.26B	19.41B	18.93B	15.82B	10.94B	9.75B
Cash Flow
Free Cash Flow	-553.40M	-3.20B	-123.11M	4.21B	1.63B	823.43M
Operating Cash Flow	640.88M	-553.95M	3.19B	5.36B	2.02B	1.04B
Investing Cash Flow	-54.08M	-611.62M	-3.34B	-4.99B	-1.81B	-1.13B
Financing Cash Flow	-551.11M	1.09B	50.28M	-413.34M	-117.38M	107.53M

Andhra Paper Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 67.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ANDHRAPAP, the sentiment is Negative. The current price of 67.39 is above the 20-day moving average (MA) of 66.25, above the 50-day MA of 65.73, and below the 200-day MA of 73.44, indicating a bearish trend. The MACD of -1.23 indicates Positive momentum. The RSI at 31.69 is Neutral, neither overbought nor oversold. The STOCH value of 29.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ANDHRAPAP.

Andhra Paper Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RUCHIRA	74 Outperform	₹3.05B	44.75	―	4.14%	2.56%	36.81%
PDMJEPAPER	66 Neutral	₹6.89B	10.91	―	0.62%	-5.63%	-27.65%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SESHAPAPER	58 Neutral	₹16.16B	19.06	―	1.03%	-9.17%	-57.37%
TNPL	58 Neutral	₹9.27B	36.69	―	2.08%	4.65%	-127.24%
ANDHRAPAP	54 Neutral	₹12.15B	33.92	―	1.48%	-2.55%	-89.20%
RAMANEWS	49 Neutral	₹5.20B	-11.89	―	―	―	―