Andhra Paper Ltd. (ANDHRAPAP) AI Stock Analysis

• Market Cap: ₹15.45B
• Dividend Yield: 1.29%
• Average Volume (3M): 14.73K
• Price to Earnings (P/E): 18.7
• Beta (1Y): 0.94
• Revenue Growth: -1.23%
• EPS Growth: -66.84%
• Country: IN
• Employees: 1,991
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 1.07
• 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: ₹85.00
• Price Target Upside: 9.41% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: ₹85.00 ▲(9.41% Upside)

Andhra Paper Ltd. has a solid balance sheet with low leverage, which is a key strength. However, declining profitability and liquidity challenges are significant concerns. The technical indicators suggest a lack of strong momentum, and the valuation appears fair. Addressing cash flow issues is crucial for long-term stability.

Andhra Paper Ltd. Business Overview & Revenue Model

Company Description

Andhra Paper Ltd. (ANDHRAPAP) is an Indian company primarily engaged in the production and distribution of a wide range of paper products. The company operates in the paper manufacturing sector, specializing in the production of writing, printing, and copier papers. These products cater to various sectors, including education, corporate, and publishing industries. Andhra Paper Ltd. is known for its commitment to quality and sustainability, utilizing advanced production techniques and eco-friendly practices in its operations.

How the Company Makes Money

Andhra Paper Ltd. generates revenue through the manufacturing and sale of its paper products. The company's key revenue streams include the sale of writing, printing, and copier papers, which are sold to a diverse customer base ranging from educational institutions and corporate organizations to publishers and wholesalers. Additionally, Andhra Paper Ltd. benefits from strategic partnerships and distribution networks that help expand its market reach both domestically and internationally. The company's focus on sustainable production methods also enhances its brand value, attracting customers who prioritize environmentally friendly products.

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 remains strong with a solid equity base and low leverage, which is positive. However, liquidity issues in the cash flow statement 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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	16.19B	15.41B	18.01B	20.98B	13.67B	8.87B
Gross Profit	5.52B	4.84B	6.94B	10.31B	5.29B	3.02B
EBITDA	1.36B	1.35B	5.26B	7.69B	2.65B	716.99M
Net Income	825.32M	889.11M	3.40B	5.22B	1.40B	-45.99M
Balance Sheet
Total Assets	0.00	26.05B	24.51B	20.05B	14.98B	13.33B
Cash, Cash Equivalents and Short-Term Investments	7.48B	7.52B	8.78B	7.53B	2.95B	1.91B
Total Debt	0.00	2.83B	1.14B	548.80M	585.87M	436.21M
Total Liabilities	-19.41B	6.64B	5.58B	4.23B	4.04B	3.57B
Stockholders Equity	19.41B	19.41B	18.93B	15.82B	10.94B	9.75B
Cash Flow
Free Cash Flow	0.00	-3.20B	-123.11M	4.21B	1.63B	823.43M
Operating Cash Flow	0.00	-553.95M	3.19B	5.36B	2.02B	1.04B
Investing Cash Flow	0.00	-611.62M	-3.34B	-4.99B	-1.81B	-1.13B
Financing Cash Flow	0.00	1.09B	50.28M	-413.34M	-117.38M	107.53M

Andhra Paper Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 77.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 77.69 is below the 20-day moving average (MA) of 79.17, below the 50-day MA of 78.24, and below the 200-day MA of 78.43, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 45.30 is Neutral, neither overbought nor oversold. The STOCH value of 7.13 is Positive, 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	68 Neutral	₹3.97B	5.71	―	3.76%	1.65%	64.71%
PDMJEPAPER	68 Neutral	₹11.42B	10.94	―	0.50%	-0.51%	-8.77%
ANDHRAPAP	67 Neutral	₹15.45B	18.72	―	1.29%	-1.23%	-66.84%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SESHAPAPER	59 Neutral	₹15.88B	17.31	―	0.98%	-4.45%	-62.88%
TNPL	52 Neutral	₹10.56B	310.83	―	1.96%	-0.66%	-125.23%

Andhra Paper Ltd. Corporate Events

Andhra Paper Limited Declares Lockout Amid Worker Strike

Andhra Paper Limited has announced a lockout at its Rajahmundry manufacturing unit due to an ongoing illegal strike by workers demanding wage enhancements, which has disrupted operations since July 6, 2025. The management has taken this step to protect its employees and assets, with the lockout effective from July 11, 2025, until further notice, resulting in a daily production loss of approximately 520 MT.