The stock of a leading integrated paper and pulp manufacturer rose by 1.5% to ₹524.95 per share following the company’s signing of an agreement with a Swedish company for the supply and commissioning of a tissue paper production line.
At 1:40 p.m, Andhra Paper Ltd shares were trading at ₹518 per share,up 0.14% from the previous close price on the National Stock Exchange and the company has a market capitalization of ₹2,049 crores.
The company recently entered into a significant agreement with Valmet AB (Sweden) as per its recent exchange filing on May 9, 2024. This agreement pertains to the supply and commissioning of a Tissue paper production line with a maximum capacity of 129 tones per day, aimed at producing various grades of tissue paper.
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 8% decrease over the past six months and an 11% decrease over the last twelve months.
Additionally, the company saw a significant decline in revenue, dropping by 16% annually from ₹571 crore in Q2FY23 to ₹477 crore in Q2FY24. Concurrently, its net profit also took a hit, plunging by 52% from ₹170 crore to ₹82 crore within the corresponding period.
The company specializing 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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