Stock Price Movement and Market Context
On 11 Dec 2025, Andhra Paper's share price touched Rs.64.68, its lowest level in the past year. Despite a modest gain of 0.03% on the day, the stock remains below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a persistent downtrend. Over the last three trading sessions, the stock has recorded a cumulative return of 0.67%, yet this short-term gain has not reversed the broader decline.
In comparison, the broader market has shown resilience. The Sensex opened flat but climbed 317.64 points to close at 84,774.39, a 0.45% increase. The index is trading close to its 52-week high of 86,159.02, just 1.63% away, supported by bullish moving averages where the 50-day moving average remains above the 200-day average. Mid-cap stocks led the market rally, with the BSE Mid Cap index gaining 0.66% on the day.
Long-Term Price Performance
Over the past year, Andhra Paper's stock has declined by 35.00%, contrasting with the Sensex's 3.96% rise during the same period. The stock's 52-week high was Rs.107.76, underscoring the extent of the recent price erosion. This underperformance extends beyond the last year, with the stock lagging behind the BSE500 index over the last three years, one year, and three months.
Our current monthly pick, this Mid Cap from Automobile Two & Three Wheelers, survived rigorous evaluation against dozens of contenders. See why experts are backing this one!
- - Rigorous evaluation cleared
- - Expert-backed selection
- - Mid Cap conviction pick
Financial Performance and Profitability Trends
Andhra Paper's financial results have reflected challenges over recent quarters. The company reported a decline in net sales by 16.24% in the September 2025 quarter, contributing to a series of negative earnings announcements spanning eight consecutive quarters. Operating profit has shown a downward trajectory, with an annualised rate of change at -180.17% over the last five years, signalling persistent pressure on core profitability.
Operating cash flow for the year reached a low of Rs. -55.39 crores, indicating cash generation difficulties. Profit before tax excluding other income for the quarter stood at Rs. -37.93 crores, reflecting a fall of 238.03%. Meanwhile, interest expenses for the nine-month period increased by 61.84% to Rs.17.22 crores, adding to the financial strain.
Valuation and Risk Considerations
The stock is currently trading at valuations considered risky relative to its historical averages. Profitability has contracted by 89.2% over the past year, aligning with the stock's negative return profile. Despite these challenges, the company maintains a low average debt-to-equity ratio, close to zero, which may provide some balance to its financial structure.
Promoters remain the majority shareholders, maintaining control over the company’s strategic direction.
Is Andhra Paper your best bet? SwitchER suggests better alternatives across peers, market caps, and sectors. Discover stocks that could deliver more for your portfolio!
- - Better alternatives suggested
- - Cross-sector comparison
- - Portfolio optimization tool
Sector and Industry Context
Operating within the Paper, Forest & Jute Products sector, Andhra Paper faces sector-specific pressures that have influenced its recent performance. While the broader market and mid-cap segments have shown positive momentum, Andhra Paper's stock has not mirrored this trend, reflecting company-specific factors impacting its valuation and earnings.
The stock’s current position below all major moving averages contrasts with the Sensex’s bullish technical setup, highlighting the divergence between Andhra Paper and the broader market indices.
Summary of Key Metrics
To summarise, Andhra Paper’s stock price at Rs.64.68 represents a 52-week low, with a one-year return of -35.00%. The company’s net sales have contracted by 16.24% in the recent quarter, while operating profit trends remain subdued over the long term. Interest costs have risen by over 60% in the nine-month period, and operating cash flow is negative at Rs. -55.39 crores. Despite a low debt-to-equity ratio, the stock’s valuation and earnings profile suggest ongoing challenges.
These factors collectively contribute to the stock’s current market position and reflect the financial realities faced by Andhra Paper in a competitive and evolving sector environment.
Only for Rs. 14,999 - Get Access to 2 Years + 6 Months of All Premium Features on MarketsMojo. As low as ₹500/month! Claim 83% OFF →
