Stock Price Movement and Market Context
On 30 Jan 2026, Andhra Paper Ltd’s stock price touched Rs.58.65, underperforming its sector by 0.42% despite a modest intraday gain of 1.14%. The stock remains below its 20-day, 50-day, 100-day, and 200-day moving averages, signalling sustained bearish momentum. It is, however, trading marginally above its 5-day moving average, indicating some short-term price support.
In comparison, the broader market index, Sensex, opened lower at 81,947.31, down 619.06 points (-0.75%), and was trading at 82,189.94 (-0.46%) during the same session. The Sensex remains 4.83% below its 52-week high of 86,159.02, with the 50-day moving average positioned above the 200-day moving average, suggesting a cautiously positive medium-term market trend contrasting Andhra Paper’s performance.
Long-Term Price Performance and Valuation
Over the past year, Andhra Paper Ltd’s stock has depreciated by 25.90%, a stark contrast to the Sensex’s 7.08% gain over the same period. The stock’s 52-week high was Rs.98, underscoring the extent of the decline. This underperformance extends beyond the last year, with the company lagging behind the BSE500 index over one, three years, and the recent three-month period.
The company’s market capitalisation grade stands at 3, reflecting a relatively modest market cap compared to peers. The Mojo Score, a comprehensive metric assessing financial health and market sentiment, has deteriorated to 15.0, resulting in a Mojo Grade downgrade from Sell to Strong Sell as of 7 Nov 2025.
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Financial Performance and Profitability Trends
Andhra Paper Ltd’s financial results have reflected a challenging environment. The company reported a decline in net sales by 16.24% in the quarter ending September 2025, contributing to a series of eight consecutive quarters of negative results. Operating profit growth has been notably weak, with an annualised contraction rate of 180.17% over the past five years, indicating sustained pressure on core earnings.
Operating cash flow for the year reached a low of Rs. -55.39 crores, highlighting cash generation difficulties. Profit before tax excluding other income (PBT less OI) fell sharply by 238.03% to Rs. -37.93 crores in the latest quarter. Interest expenses for the nine-month period increased by 61.84% to Rs.17.22 crores, further weighing on profitability.
Risk Profile and Valuation Concerns
The stock is considered risky relative to its historical valuation averages. Profitability has deteriorated significantly, with profits falling by 89.2% over the past year. This decline in earnings has coincided with the stock’s negative return of 25.90%, underscoring the correlation between financial performance and market valuation.
Despite these challenges, the company maintains a low average debt-to-equity ratio of zero, indicating minimal leverage. Promoters remain the majority shareholders, providing a stable ownership structure amid the financial headwinds.
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Sector and Industry Positioning
Operating within the Paper, Forest & Jute Products sector, Andhra Paper Ltd faces sector-specific pressures including fluctuating raw material costs and demand variability. The company’s performance contrasts with broader market indices, which have shown relative resilience. The Sensex’s current position below its 50-day moving average but above its 200-day moving average suggests a mixed market environment, whereas Andhra Paper’s stock remains firmly below key moving averages.
The company’s market cap grade of 3 and Mojo Grade of Strong Sell reflect the market’s cautious stance on its near-term prospects given the financial metrics and recent performance trends.
Summary of Key Metrics
To summarise, Andhra Paper Ltd’s stock has reached Rs.58.65, its lowest level in 52 weeks, reflecting a 25.90% decline over the past year. The company’s financial indicators reveal a sustained decline in profitability, with operating cash flow at a negative Rs.55.39 crores and interest costs rising by over 60%. The stock’s Mojo Score of 15.0 and Strong Sell grade underscore the challenges faced by the company in reversing its downward trend.
While the company benefits from a low debt profile and promoter stability, the prevailing financial results and market performance highlight ongoing difficulties in regaining investor confidence and market momentum.
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