Andhra Paper Ltd. (ANDHRAPAP) AI Stock Analysis

• Market Cap: ₹15.51B
• Dividend Yield: 1.45%
• Average Volume (3M): 14.73K
• Price to Earnings (P/E): 18.8
• Beta (1Y): 0.90
• 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): -1.02
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: ₹71.00 ▲(3.30% Upside)

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 strong balance sheet with low leverage provides financial stability and flexibility, allowing the company to withstand economic fluctuations and invest in growth opportunities.

Sustainability Focus

A focus on sustainability and eco-friendly practices can enhance brand reputation and align with increasing consumer and regulatory demand for environmentally responsible products.

Diverse Revenue Streams

Diverse revenue streams and long-term contracts provide a stable income base, reducing reliance on any single product or market and enhancing resilience against market volatility.

Negative Factors

Declining Profitability

Declining profitability margins indicate potential operational inefficiencies or increased competition, which could erode long-term earnings power and shareholder value.

Negative Cash Flow

Negative cash flow suggests liquidity challenges, which can limit the company's ability to invest in growth initiatives or weather economic downturns, impacting long-term viability.

Revenue Decline

Inconsistent and declining revenue growth can signal weakening market position or demand issues, potentially affecting the company's ability to sustain operations and invest in future growth.

Andhra Paper Ltd. Business Overview & Revenue Model

Company Description

Andhra Paper Ltd. (ANDHRAPAP) is a leading player in the Indian paper manufacturing industry, primarily engaged in the production of a wide range of paper products, including writing, printing, and packaging papers. The company operates in the pulp and paper sector and has established itself as a key supplier to various industries through its commitment to quality and sustainability. With a focus on innovation and eco-friendly practices, Andhra Paper Ltd. strives to meet the evolving needs of its customers while contributing to environmental conservation.

How the Company Makes Money

Andhra Paper Ltd. generates revenue primarily through the sale of its diverse range of paper products, which cater to both domestic and international markets. The company's key revenue streams include the production of writing and printing paper, as well as specialized packaging solutions. Additionally, Andhra Paper benefits from long-term contracts and partnerships with major distributors and retailers, ensuring a steady demand for its products. The company also explores opportunities in value-added products and services, contributing to its overall profitability. Factors such as operational efficiency, cost management, and strategic investments in technology further enhance its earnings potential.

Andhra Paper Ltd. Financial Statement Overview

Summary

Andhra Paper Ltd. faces challenges with declining revenues and profitability margins. The balance sheet is strong, with low leverage and a solid equity base, but cash flow issues pose risks if not addressed.

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: 68.73
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 68.73 is below the 20-day moving average (MA) of 72.21, below the 50-day MA of 76.23, and below the 200-day MA of 76.41, indicating a bearish trend. The MACD of -2.45 indicates Positive momentum. The RSI at 25.82 is Positive, neither overbought nor oversold. The STOCH value of 22.66 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	68 Neutral	₹3.58B	5.31	―	4.16%	2.56%	36.81%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
PDMJEPAPER	61 Neutral	₹11.22B	10.74	―	0.59%	-5.63%	-27.65%
SESHAPAPER	59 Neutral	₹16.27B	19.05	―	1.03%	-9.17%	-57.37%
TNPL	55 Neutral	₹10.58B	-52.70	―	2.08%	4.65%	-127.24%
ANDHRAPAP	54 Neutral	₹15.51B	18.79	―	1.45%	-2.55%	-89.20%

Andhra Paper Ltd. Corporate Events

Andhra Paper Limited Announces Reconstitution of Board Committees

Andhra Paper Limited announced the reconstitution of its Board committees effective October 29, 2025. This strategic move involves changes in the Audit, Nomination and Remuneration, Stakeholders Relationship, and Risk Management Committees, with new members being co-opted and existing members being designated to new roles. These changes are likely to impact the company’s governance structure and could influence its strategic direction and operational efficiency.