Low PE & high ROCE paper manufacturing stock; Board announces 5:1 stock split after Rs 10/share dividend; Check split record date inside!

Low PE & high ROCE paper manufacturing stock; Board announces 5:1 stock split after Rs 10/share dividend; Check split record date inside!

Kiran Shroff

The stock is up by 32 per cent from its 52-week low of Rs 430.50 per share and gave multibagger returns of 150 per cent in 3 years.

Andhra Paper Ltd announced that the Board of Directors of the company approved a stock split in the ratio 5:1 i.e., sub-division of every 1 equity share of a face value of Rs 10 each into 5 equity shares of the face value of Rs 2 each. The Board fixed the record date for the stock split as Wednesday, September 11, 2024. Earlier, the company distributed a final dividend of Rs 10/share on the ex-date which was August 04, 2024.

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.

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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 2,200 crore. The shares of the company have a PE of 5x and an ROCE of 40 per cent. The stock is up by 32 per cent from its 52-week low of Rs 430.50 per share and gave multibagger returns of 150 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. 

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