Low PE & high ROCE multibagger paper manufacturing stock; Board likely to announce stock split & dividend!
The stock is up by 37 per cent from its 52-week low of Rs 392.45 per share and gave multibagger returns of 135 per cent in 3 years.
Andhra Paper Ltd is holding a meeting of its Board of Directors on May 14, 2024, to address several key matters. The agenda includes reviewing and approving the company's audited financial results for both the quarter and the year ending March 31, 2024. Additionally, the board will consider and potentially recommend a final dividend for the financial year 2023-24. Finally, they will discuss and approve a change in the company's share capital through a subdivision or stock split of the existing equity shares, which currently have a face value of Rs 10.
Andhra Paper Ltd, a leading Indian manufacturer of paper and pulp products, offers a wide variety of options for both businesses and homes. Their core business includes writing, printing, and copier paper, but they also produce a unique range of speciality papers used for everything from photographs and batteries to cups, charts, and even other packaging solutions.
Also Read: Artificial Intelligence (AI) revolutionizing healthcare: A look at the present and future!
Andhra Paper Limited operates two manufacturing facilities in Rajahmundry and Kadiyam, Andhra Pradesh, with a combined paper production capacity of 807 tons per day. This vast production capability is supported by a warehousing capacity of 6,500 tonnes spread across approximately 450 acres. The company is further expanding its product portfolio by adding a tissue paper machine at its Kadiyam facility. This new machine will have the capacity to produce 100 tons of tissue paper daily, encompassing various grades such as facial tissue, toilet tissue, napkins, and towel-grade tissue.
The company has a market cap of over Rs 2,000 crore. The shares of the company have a PE of 5x and an ROCE of 40 per cent. The stock is up by 37 per cent from its 52-week low of Rs 392.45 per share and gave multibagger returns of 135 per cent in 3 years. Investors should keep an eye on this Small-Cap paper manufacturing stock.
Disclaimer: The article is for informational purposes only and not investment advice.
DSIJ’s 'Tiny Treasure' service recommends researched small-cap stocks with Inherent Growth Potential. If this interests you, do download the service details here.