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Last Updated on: 15 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Andhra Paper Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 14, 2024, 11:45 pm

Market Cap 2,026 Cr.
Current Price 102
High / Low130/93.0
Stock P/E8.14
Book Value 95.2
Dividend Yield1.96 %
ROCE24.7 %
ROE19.1 %
Face Value 2.00
PEG Ratio0.40

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Andhra Paper Ltd

Competitors of Andhra Paper Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gratex Industries Ltd 6.97 Cr. 23.026.0/13.0116 11.50.00 %4.54 %3.18 % 10.0
Ganga Papers India Ltd 124 Cr. 115191/71.583.7 27.00.00 %6.93 %5.22 % 10.0
Encode Packaging India Ltd 3.97 Cr. 12.618.7/6.4020.9 10.60.00 %3.24 %3.65 % 10.0
Cella Space Ltd 27.1 Cr. 13.415.4/7.8929.1 10.30.00 %10.7 %% 10.0
Bandaram Pharma Packtech Ltd 67.9 Cr. 56.663.1/28.365.9 10.20.18 %9.10 %6.77 % 10.0
Industry Average2,912.47 Cr228.8443.26133.040.72%25.19%12.86%6.52

All Competitor Stocks of Andhra Paper Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales249362258349346426452485571590478482477
Expenses233303217314284344328339334362323351367
Operating Profit166042356282124146237229155131110
OPM %7%16%16%10%18%19%27%30%41%39%32%27%23%
Other Income4412971691316-2222124
Interest1211121113111
Depreciation18181818181817151616161717
Profit before tax14535255078114143236208159135116
Tax %-638%27%26%26%26%26%26%20%28%26%26%25%29%
Net Profit432261937578511317015411910082
EPS in Rs1.028.136.574.749.3714.4521.3628.5242.7938.7029.8125.2220.74

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthDec 2011Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales5951,2301,0921,1631,1241,1721,2641,4271,2708871,3802,0982,121
Expenses5281,1151,0301,0689921,0021,0381,0479658261,1561,3591,369
Operating Profit67116619513117022638030461224738752
OPM %11%9%6%8%12%15%18%27%24%7%16%35%35%
Other Income67131239-22-771311423358
Interest36554345403426955578
Depreciation51888769737066687673726364
Profit before tax-13-21-56-65644126311236-6188701738
Tax %-643%-14%26%104%35%27%34%36%10%26%26%25%
Net Profit-98-24-420373283200213-5140522543
EPS in Rs-24.59-5.96-10.460.069.288.1520.8950.3153.54-1.1635.13131.37136.52
Dividend Payout %0%0%0%0%0%0%0%0%0%-432%21%10%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-75.00%100.00%-13.51%159.38%140.96%6.50%-102.35%2900.00%272.86%
Change in YoY Net Profit Growth (%)0.00%175.00%-113.51%172.89%-18.41%-134.46%-108.85%3002.35%-2627.14%

Andhra Paper Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 9 years from 2013-2014 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:5%
5 Years:5%
3 Years:27%
TTM:-23%
Compounded Profit Growth
10 Years:26%
5 Years:10%
3 Years:333%
TTM:-56%
Stock Price CAGR
10 Years:6%
5 Years:9%
3 Years:28%
1 Year:-17%
Return on Equity
10 Years:19%
5 Years:20%
3 Years:25%
Last Year:19%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital404040404040404040404040
Reserves4173753744114385247249369351,0541,5421,853
Borrowings449564502477359208159445955115
Other Liabilities302336330340317325407336313345367443
Total Liabilities1,2081,3151,2461,2681,1551,0971,1861,3211,3331,4982,0052,451
Fixed Assets821877833820798742707680619585577795
CWIP2210161734829829114
Investments16151515101516442193838871,029
Other Assets348413382415344336455595486523512513
Total Assets1,2081,3151,2461,2681,1551,0971,1861,3211,3331,4982,0052,451

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 17420128111172215310177104202536319
Cash from Investing Activity -90-89-31-38-29-31-110-167-114-181-498-334
Cash from Financing Activity -9068-108-67-145-175-201-1111-12-415
Net Cash Flow-5-0-116-39-1-019-3-10

Free Cash Flow

MonthDec 2011Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow67.00-333.00-503.00-407.00-346.00-189.0018.00365.00295.0017.00165.00683.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days142020232120191231272612
Inventory Days1141721411511311131202161698077102
Days Payable821211101109997130125134898798
Cash Conversion Cycle467152645437810266171616
Working Capital Days-114-2828-20818435744178
ROCE %5%-1%4%7%12%21%42%27%0%18%52%25%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters72.20%72.20%72.20%72.20%72.24%72.24%72.24%72.31%72.31%72.31%72.31%72.31%
FIIs0.00%0.00%0.19%0.26%0.93%0.99%1.28%1.97%2.65%2.62%2.33%2.31%
DIIs12.26%11.67%9.17%8.84%7.18%6.75%6.29%5.13%2.55%2.21%2.60%2.60%
Public15.54%16.13%18.44%18.70%19.67%20.03%20.20%20.59%22.47%22.85%22.75%22.77%
No. of Shareholders16,09815,05214,24815,55117,85918,91119,75622,60727,44534,60137,93737,553

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Large & Midcap Fund330,9550.1118.67330,9552024-10-090%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)85.43131.3735.14-1.1653.54
Diluted EPS (Rs.)85.43131.3735.14-1.1653.54
Cash EPS (Rs.)101.99147.2653.2417.3072.62
Book Value[Excl.RevalReserv]/Share (Rs.)476.04397.83275.10245.21245.37
Book Value[Incl.RevalReserv]/Share (Rs.)476.04397.83275.10245.21245.37
Dividend / Share (Rs.)10.0012.507.505.000.00
Revenue From Operations / Share (Rs.)452.75527.45347.05222.97319.26
PBDIT / Share (Rs.)132.24197.8266.8419.1479.71
PBIT / Share (Rs.)115.68181.9348.730.6860.63
PBT / Share (Rs.)114.57176.2647.36-1.5659.29
Net Profit / Share (Rs.)85.42131.3735.13-1.1653.54
PBDIT Margin (%)29.2037.5019.258.5824.96
PBIT Margin (%)25.5534.4914.040.3018.99
PBT Margin (%)25.3033.4113.64-0.6918.57
Net Profit Margin (%)18.8624.9010.12-0.5116.76
Return on Networth / Equity (%)17.9433.0212.77-0.4721.81
Return on Capital Employeed (%)22.6343.4016.230.2521.95
Return On Assets (%)13.8626.069.32-0.3416.11
Long Term Debt / Equity (X)0.020.000.010.010.01
Total Debt / Equity (X)0.060.020.040.020.01
Asset Turnover Ratio (%)0.801.200.970.661.01
Current Ratio (X)3.063.402.392.212.56
Quick Ratio (X)2.492.891.911.561.56
Inventory Turnover Ratio (X)4.215.153.022.712.30
Dividend Payout Ratio (NP) (%)0.005.7014.230.000.00
Dividend Payout Ratio (CP) (%)0.005.099.390.000.00
Earning Retention Ratio (%)0.0094.3085.770.000.00
Cash Earning Retention Ratio (%)0.0094.9190.610.000.00
Interest Coverage Ratio (X)119.13109.7148.8116.8759.54
Interest Coverage Ratio (Post Tax) (X)77.9576.0026.660.9540.99
Enterprise Value (Cr.)2021.461644.741175.63820.56411.61
EV / Net Operating Revenue (X)1.120.780.850.920.32
EV / EBITDA (X)3.842.094.4210.781.30
MarketCap / Net Operating Revenue (X)1.070.780.850.980.45
Retention Ratios (%)0.0094.2985.760.000.00
Price / BV (X)1.021.041.080.890.58
Price / Net Operating Revenue (X)1.070.780.850.980.45
EarningsYield0.170.310.11-0.010.37

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Andhra Paper Ltd as of October 15, 2024 is: ₹150.91

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of October 15, 2024, Andhra Paper Ltd is Undervalued by 47.95% compared to the current share price ₹102.00

Intrinsic Value of Andhra Paper Ltd as of October 15, 2024 is: ₹181.98

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of October 15, 2024, Andhra Paper Ltd is Undervalued by 78.41% compared to the current share price ₹102.00

Last 5 Year EPS CAGR: 20.59%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 17.67%, which is a positive sign.
  2. The stock has a low average Working Capital Days of 15.67, which is a positive sign.
  3. The company has higher reserves (798.58 cr) compared to borrowings (238.00 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (115.00 cr) and profit (176.77 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 45.75, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Andhra Paper Ltd:
    1. Net Profit Margin: 18.86%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 22.63% (Industry Average ROCE: 24.26%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 17.94% (Industry Average ROE: 10.48%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 77.95
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 2.49
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 8.14 (Industry average Stock P/E: 33.65)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.06
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Andhra Paper Ltd. is a Public Limited Listed company incorporated on 29/06/1964 and has its registered office in the State of Andhra Pradesh, India. Company’s Corporate Identification Number(CIN) is L21010AP1964PLC001008 and registration number is 001008. Currently Company is involved in the business activities of Manufacture of printing, writing and photocopying paper ready for use. Company’s Total Operating Revenue is Rs. 1380.23 Cr. and Equity Capital is Rs. 39.77 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Paper & Paper ProductsRajahmundry, East Godavari Distri Andhra Pradesh 533105Bijaykumar.sanku@andhrapaper.com
http://www.andhrapaper.com
Management
NamePosition Held
Mr. Shree Kumar BangurChairman & Managing Director
Mr. Virendraa BangurVice Chairman
Mr. Saurabh BangurJoint Managing Director
Mr. Mukesh JainExecutive Director
Mrs. Papia SenguptaIndependent Director
Mr. Sudarshan V SomaniIndependent Director
Mr. Arun Kumar SurekaIndependent Director
Mr. Sitaram SharmaIndependent Director
Mr. Virendra SinhaIndependent Director

FAQ

What is the latest fair value of Andhra Paper Ltd?

The latest fair value of Andhra Paper Ltd is ₹150.91.

What is the Market Cap of Andhra Paper Ltd?

The Market Cap of Andhra Paper Ltd is 2,026 Cr..

What is the current Stock Price of Andhra Paper Ltd as on 15 October 2024?

The current stock price of Andhra Paper Ltd as on 15 October 2024 is ₹102.

What is the High / Low of Andhra Paper Ltd stocks in FY 2024?

In FY 2024, the High / Low of Andhra Paper Ltd stocks is 130/93.0.

What is the Stock P/E of Andhra Paper Ltd?

The Stock P/E of Andhra Paper Ltd is 8.14.

What is the Book Value of Andhra Paper Ltd?

The Book Value of Andhra Paper Ltd is 95.2.

What is the Dividend Yield of Andhra Paper Ltd?

The Dividend Yield of Andhra Paper Ltd is 1.96 %.

What is the ROCE of Andhra Paper Ltd?

The ROCE of Andhra Paper Ltd is 24.7 %.

What is the ROE of Andhra Paper Ltd?

The ROE of Andhra Paper Ltd is 19.1 %.

What is the Face Value of Andhra Paper Ltd?

The Face Value of Andhra Paper Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Andhra Paper Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE