The stock of a leading integrated paper and pulp manufacturer opened at a high note of ₹512 apiece on Wednesday, a day after the company board approved a stock split in the ratio of 1:5.
At 12:05 p.m, Andhra Paper Ltd. shares were trading at ₹506.80 per share,down 3.43% from the previous close price on the National Stock Exchange and the company has a market capitalization of ₹2,087 crores.
As per the company’s exchange filing, the company board approved the Sub-Division/Split of 1 equity share of the face value of ₹10, i.e., a 1:5 ratio. Consequently, shareholders will receive 5 additional shares for each share held.
As well as board recommended final dividend of ₹10 per share (i.e. 100%) on equity share of ₹10 each fully paid up for the FY 2023-24.The record date for the sub-division of equity shares shall be decided by the authorized persons of the company in near terms.
The company reported a consolidated net profit of ₹38 crores for the quarter ending March 2024 (Q4FY24), marking a 75% decline from ₹153 crores recorded in Q4FY23. Additionally, the company’s total revenue for the same quarter declined by 38%, reaching ₹364 crores compared to ₹590 crores in the previous year’s corresponding quarter.
The company recently entered into a significant agreement with Valmet AB (Sweden) as per its recent exchange filing on May 9, 2024. To supply and commission of a Tissue paper production line with a maximum capacity of 129 tonnes per day, aimed at producing various grades of tissue paper.
Additionally, The company’s board has approved a commercial consideration of approximately ₹125 crores for the project, which is part of the overall capex of ₹270 crores.
Andhra Paper Ltd’s stock has experienced an 10% decrease over the past six months and an 11% decrease over the last twelve months.
Andhra Paper, a company specializes in the manufacturing and sale of paper, pulp, and paper & paperboard, Andhra Paper’s product line encompasses writing & printing paper, copier paper, and an extensive array of specialty paper tailored for various applications, including photography, battery production, cup manufacturing, charts, and diverse packaging solutions.
The company operates two manufacturing facilities located in Rajahmundry and Kadiyam within Andhra Pradesh. Together, these facilities boast a total paper manufacturing capacity of 807 TPD, accompanied by a warehouse capacity of 6500 tonnes, spread across approximately 450 acres of land. Revenue streams indicate that 84% is generated domestically within India, with the remaining 16% sourced from exports.
Written by Omkar Chitnis
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