1:5 Sub-Division of Shares: 11th September Record Date For Eligibliity; Buy For Stock Split?

Among India's largest manufacturers of integrated pulp and paper is Andhra Paper Limited. The firm was founded in 1964 and manufactures writing, printing, and copier papers for international as well as domestic markets. Given that the firm has a set record date for a 1:5 stock split, the small-cap stock in the commodities sector, with a market valuation of Rs 2,236.07 Cr, is probably going to be in the spotlight going forward. Andhra Paper's shares closed 1.03% higher at Rs 562.25 apiece on Wednesday.

Andhra Paper Stock Split

"In terms of Regulation 42(2) of the SEBI (LODR) Regulations, 2015, the Company has fixed Wednesday, 11th September, 2024 as 'Record Date' for the purpose of determining the eligibility of Shareholders for the purpose of sub-division of every one fully paid-up equity share having face value of Rs. 10/- (Rupees Ten only) each in the share capital of the Company into five (5) fully paidup equity shares having face value of Rs. 2/- (Rupees Two only) each, pursuant to the shareholders' approval received at the 60th Annual General Meeting of the Company held on 12th August, 2024," said Andhra Paper in a stock exchange filing.

Andhra Paper Q1 Results

In the quarter that ended in June 2024, Andhra Paper's net profit dropped by 76.65% to Rs 27.68 crore, from Rs 118.55 crore in the quarter that ended in June 2023. Sales fell 33.86% to Rs 315.89 crore in Q1FY25 compared to Rs 477.59 crore in Q1FY24.

Andhra Paper Share Price Target

"Andhra Paper Ltd.'s current price movement makes its moderate buying range a lucrative entry point for market participants. Notably, the stock's RSI readings of 52 on the daily and weekly timeframes and 58 on the monthly frame suggest a balanced market condition. Those interested can explore the buying range of Rs. 510-555, with a target price between Rs. 630 and Rs. 750. They may consider holding their investment in this stock for a period of 2-7 months while closely following the suggested stop-loss of Rs. 490 to manage risk," recommended V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

Disclaimer

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