Why is Andhra Paper falling/rising?

Oct 01 2025 09:56 PM IST
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As of 01-Oct, Andhra Paper Ltd's stock price is Rs 79.31, up 2.95% over three days, but it has poor long-term growth with a 16.58% decline in annual operating profit over five years and a 66.8% profit drop in the past year. Despite short-term gains, its year-to-date return is -16.33%, underperforming the Sensex, indicating ongoing operational challenges.
As of 01-Oct, Andhra Paper Ltd's stock price is currently at Rs 79.31, reflecting an increase of Rs 2.27 or 2.95%. The stock has been gaining for the last three days, with a total return of 4.4% during this period. It has outperformed its sector by 1.2% today and reached an intraday high of Rs 79.52. Despite these positive movements, the stock has shown poor long-term growth, with an annual operating profit decline of 16.58% over the past five years and negative results for the last seven consecutive quarters. The company's low debt-to-equity ratio and majority ownership by promoters may provide some stability, but the stock's high valuation relative to its peers and significant profit decline of 66.8% over the past year raise concerns about its sustainability.

In the broader market context, Andhra Paper's short-term performance contrasts with the benchmark Sensex, which has declined by 0.90% over the past week while Andhra Paper has gained 0.78%. However, the stock has underperformed the benchmark over longer periods, with a year-to-date return of -16.33% compared to the Sensex's 3.64% gain. This indicates that while the stock is experiencing a short-term rise, its overall performance remains below par relative to the market, reflecting ongoing challenges in its operational performance and profitability.
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