Stock Review: Andhra Pradesh Paper Mills

Andhra Pradesh Paper Mills has sold a majority stake to the US paper major, International Paper, for about Rs 1,860 crore. The company could be worth investing in post acquisition due to the global expertise and brands that will come along with International Paper. Andhra Pradesh Paper's current production capacity is 2.5 lakh tonne per annum (TPA). Its productivity and operating margins are seen improving over the next two years. Increase in efficiency in operations and expansion of product portfolio will boost earnings.