ANDHRAPAP trade ideas
Just going back to old highs can give a massive returnAndhra Paper: Positive Momentum Building
Strong Session Performance:
Andhra Paper's stock witnessed a significant rise during today’s trading session, reflecting renewed investor interest.
Sector Outlook:
The overall sentiment within the paper industry appears positive, with improving fundamentals and technical indicators across key players.
Parent Company Strength:
A promising sign is that the parent company, West Coast Paper, is also displaying strength on the charts — lending confidence to Andhra Paper’s long-term prospects.
Negatives Already Priced In:
Most of the recent negatives — including the temporary plant closure, the illegal strike, and strained labour-management relations — now seem to be priced into the stock.
Fundamental and Technical Improvements:
With the introduction of new equipment and a more favourable business environment, supported by a stable political climate in the state, Andhra Paper is showing signs of fundamental improvement.
Technically as well, the prolonged downtrend — marked by several months of consecutive declines — appears to have ended, suggesting a potential reversal.
Andhra Paper has capacity expansion and new growth driversInvestment Update: A Promising Outlook for Medium-Term Gains
I made a strategic investment in this stock approximately one year ago, with the objective of achieving medium-term gains. As we approach the one-year milestone, I am pleased to reassess the company's performance and reiterate my optimism about its future prospects.
Based on recent developments and growth indicators, I forecast that the stock is poised to reach new targets of ₹150 by May 2025 . This upward trajectory is largely driven by the company's expansion efforts and improved operational efficiency.
Notably, the company has successfully increased its production capacity, paving the way for enhanced output and revenue growth. Specifically, paper production numbers have demonstrated significant improvement, underscoring the company's commitment to scaling its operations.
Furthermore, the establishment of a new tissue paper production unit represents a strategic diversification of the company's product portfolio. This move not only expands the company's revenue streams but also positions it to capitalize on the growing demand for tissue paper products.
In conclusion, the company's progress over the past year has reinforced my confidence in its potential for medium-term growth. With its enhanced capacity, improved production numbers, and strategic diversification, I firmly believe that this stock is well-positioned to deliver substantial returns on investment.
Andhra Paper LtdDate 24.02.2025
Andhra Paper
Timeframe : Weekly
Strengths
1 Has shown a good profit growth of 323.36% for the Past 3 years.
2 Has shown a good revenue growth of 26.63% for the Past 3 years.
3 Has been maintaining healthy ROE of 24.03% over the past 3 years.
4 Has been maintaining healthy ROCE of 31.48% over the past 3 years.
5 Company is virtually debt free.
6 Company has a healthy Interest coverage ratio of 104.21.
7 Has been maintaining an effective average operating margins of 21.13% in the last 5 years.
8 Efficient Cash Conversion Cycle of -28.20 days.
9 Healthy liquidity position with current ratio of 3.06.
10 Good cash flow management; CFO/PAT stands at 1.11.
11 High promoter holding of 72.45%
Regards,
Ankur
Looking bright- Andhra Paper Andhra Paper has commissioned a tissue-making unit from a Norwegian company.
The overall pulp and paper production at Rajamundary and Kadiyam has been enhanced and upgraded during the recent illegal strikes.
The new capacity on board shall contribute to an increase in revenue (top line), and the bottom line shall show a proportional increase once efficiencies start to materialise.
If the planned capital expenditure for tissue also works out as intended - based on sales - margins shall only improve, given that it is a fast-moving consumer good (FMCG) with a short shelf life.
Andhra Paper analysis on 23 Jun 24Andhra Paper analysis on 23 Jun 24
Formation of Cup and Handle pattern on monthly time frame
breakout of C & H Pattern and support near B/O
Add some quantity now
Try to add on dip 490 to 500
Target 600 - 650 - 700 - 750 - 800
Cup and handle pattern target 850
(Stock split is declaired 1: 5)
Fundamental Anallysis
promoter holding 71%
FII holding 2.33
stock PE 6.53 Less than industry PE 8.93
ROE 19.55
ROCE 25.20 & EPS 84
Andhra Paper Clear BreakoutAn undervalued company with P/E<5. Not every low P/E are good. But Andhra paper is exceptionally good in terms of fundamentals. Working capital reduced drastically. Improved profitability and operating cashflow with stellar operating profit margin. Expected Target 880.
Can be held long term as well as it's undervalued.
Disclosure: Holding before this stellar breakout
BREAKOUT, ANDHRA PAPER, 84% RETURNS!!!BUY - ANDHRA PAPER LTD
CMP - Rs. 532
Target - 1: Rs. 674
Target - 2: Rs. 823
Target - 3: Rs. 980
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Timeframe - 4 months - 18 months
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Technicals - Trendline Breakout
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This is just a view by an expert analyst, please invest at your own risk.
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Andra Papers - Trend reversalFundamentals,
1. Operating Profit are improving
2. Piotroski score 9
3. Net profit TTM is high in Industry
4. Stock with Low PE
Technical
1. Tweezer Bottom
2. Price action supportes by previous resistance & 200 ema
3. Price structure - Consolidation (basing), trend reversal
4. Momentum is expected
Entry : 565 (50%) , 595 ( 50%)
SL: 540
ANDHRA PAPER READY TO PRINT money AGAIN The stock had given a breakout from series of patterns including an inverse head and shoulder moreover after breaching the 555 level it gave a rally and retested to the same level . post breakout the stock is agian forming a rounding bottom pattern . for the short term the target would be 650 thereafter the stock can rally till the 972 levels for broader time . the company has solid fundamentals and the profit has multiplied 5 times this year . it has an immense potential of becoming a multibagger
Andhra Paper Buy ideaAndhra Paper broke the level of Sep 2018, almost after 5 years. Good consolidation has been done in Daily chart before giving breakout. Can see a short term target of 718 by Dec 23 and and one can also wait for a target of 950-1000 within a year. Next Big move only after todays high i.e 675
ANDHRAPAP --- marching towards 600 and then 900NSE:ANDHRAPAP
marching towards 600 and afterwards 900 can be targeted
cmp is 466
This analysis is being done for educational and knowledge-sharing purposes.
This article does not offer any kind of buy or sell advice.
All stocks are positional and are held for a short to medium period of time.
Everyone is expected to conduct their own research and analysis to determine whether my point of view aligns with yours.
ANDHRA PAPERNote:
1. Views are personal and for educational purposes only. Recheck and take the trade as per your RR.
2. Always remember SL is your lifeline, not the big target...
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Keep an eye ladies and gentlemen. Cheers and Happy Trading