SBI MF, Damani take stakes in Andhra Paper

Andhra Paper reported earnings per share of Rs 53 for the year ended March 2020

Agencies
But some analysts warn that the fortunes of the paper industry are bleak now.
Mumbai: Interest in Andhra Paper, a debt-free company with a strong balance sheet, has spiked after market purchases by big investors like Radhakishan Damani and SBI Mutual Fund, the country’s largest fund house.

While Damani bought over 1 per cent last Friday, SBI MF acquired nearly 8 per cent on June 25. Shares of Andhra Paper were locked in 20 per cent upper circuit at Rs 254 on Monday, but they are still 44 per cent below the 52-week high of 452.

Andhra Paper reported earnings per share of Rs 53 for the year ended March 2020 and the stock is available at a PE of 4.6. It has grown its profit by 47.11 per cent over the last five years and its return on equity of 30 per cent. It has Rs 171 crore in cash and Rs 936 crore in reserves as on FY20. Promoters hold about 82 per cent of its equity.


But some analysts warn that the fortunes of the paper industry are bleak now. “Due to sharp correction in global pulp prices, postponement of school and college terms due to Covid-19 outbreak and logistical issues, the domestic paper industry has witnessed huge downward pressure on net sales,” said Archana Gude, analyst, IDBI Capital.
Download
The Economic Times Business News App
for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App
for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
READ MORE
ADVERTISEMENT

Top Mutual Funds

3 M(%)
6 M(%)
1 YR(%)
3 YRS(%)

READ MORE:

LOGIN & CLAIM

50 TIMESPOINTS

Related Companies

Save with Tax planning SIP's

More from our Partners

Loading next story
Text Size:AAA
Success
This article has been saved

*

+