Multibagger Share: Strong Performance of Andhra Paper in the share Market
Andhra Paper Share : On Wednesday, the stock market displayed an encouraging upward trend. BSE Sensex was observed trading at a hike of 0.66% or 436 points at 66,512, while the NSE Nifty showed an increment of 0.65% or 127 points, trading at 19,817. Amidst this positive sentiment, one notable shift was in the stakeholding of Radhakrishnan Damani, a prominent investor, in a multibagger paper stock. The share of Andhra Paper Limited witnessed a significant 10.60% surge.
Andhra Paper Share: Furthermore, the stock reached a new 52-week high on BSE at INR 667.10 per share. There was also a noteworthy volume growth of over 1.77 times. The company’s current market capitalization stands at INR 2,622.44 crores.
Analyzing the technical charts up to October 11, 2023, the stock’s 200-day moving average (DMA) was INR 458.04, while its 50-DMA was at INR 527.27. Currently, the share price on BSE is INR 659.40. Notably, the 50-DMA recently crossed above the 200-DMA, indicating a long-term upward momentum.
Andhra Paper share is engaged in the production and sale of paper, cardboard, and related products. There was a recent change in the company’s shareholding pattern. Radhakrishnan Damani, also known as RK Damani, reduced his stake in Andhra Paper during the recently concluded quarter of September. Damani’s investment firm, Bright Star Investments, held a 1.26% stake or 499,296 shares in the paper company by the end of the June 2023 quarter. However, data from September 2023 reveals that Damani’s stake has decreased to 1%, equivalent to 399,296 shares.
This development sparked discussions among investors, which could be a factor in the recent spike in the stock. The upcoming festive season has seen a marked increase in the demand for paper. Industry experts attribute this growing demand to factors such as the increasing need for paper in e-commerce packaging.
Additionally, there has been significant buying activity in this stock. This is a prime reason why the stock has delivered a multi-bagger return of more than 250% over the last three years.
