Shares of this paper and pulp company zoomed by 7% on August 29; Here's why
Andhra Paper is trading at a 52-week high after getting the nod for capital expenditure of Rs 400 crore for the pulp mill.
Andhra Paper is currently trading at Rs 501.85, up by 32.40 points or 6.90% from its previous closing of Rs 469.45 on the BSE. The scrip opened at Rs 441.00 and has touched a high and low of Rs 509.95 and Rs 441.00, respectively. So far 38061 shares were traded on the counter.
The BSE group 'B' stock of face value of Rs 10 has touched a 52-week high of Rs 509.95 today and a 52-week low of Rs 201.10 on 24 February 2022.
Andhra Paper has received approval for capital expenditure amounting to Rs 400 crore to rebuild and upgrade the existing pulp plant to improve the reliability and efficiency of the Pulp Mill. This will help sustain the current levels of production, improve efficiency in Pulp Mill processes and lend flexibility in operations, augment pulp production capacity from the existing 550 tonnes per day to 600 tonnes per day. The expected completion timeline is November 30, 2023. The proposal shall be funded through a mix of debt and internal accruals.
Andhra Paper is one of the largest integrated paper and pulp manufacturers in India. The company produces writing and printing paper, copier and a wide range of speciality paper used in a diverse range of applications such as photos, batteries, cups, charts, etc.
The financial numbers suggest that the June quarter has shown 75% growth QoQ at Rs 452 crore and a sequential-quarter growth of 6%. The QOQ increase in profit after tax for Q1FY23 increased by 225% to Rs 85 crore. The operating profit is consistently increased over the past three quarters and is currently 24.7%.
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