Current Rating Overview
MarketsMOJO’s Strong Sell rating for Anjani Portland Cement Ltd indicates a cautious stance for investors, signalling significant concerns about the company’s financial health and market prospects. The Mojo Score currently stands at 24.0, a notable decline from the previous score of 39. This score reflects a comprehensive evaluation of the company’s quality, valuation, financial trend, and technical indicators, all of which contribute to the overall negative outlook.
Quality Assessment
As of 25 January 2026, Anjani Portland Cement Ltd’s quality grade is categorised as below average. The company has demonstrated weak long-term fundamental strength, with a compounded annual growth rate (CAGR) in operating profits of -211.39% over the past five years. This steep decline highlights persistent operational challenges and an inability to generate consistent earnings growth. Additionally, the average Return on Equity (ROE) is a mere 1.77%, indicating low profitability relative to shareholders’ funds. The operating cash flow for the year is also minimal at ₹0.12 crore, underscoring limited cash generation capacity. These factors collectively point to a fragile business model struggling to maintain financial stability.
Valuation Considerations
The valuation grade for Anjani Portland Cement Ltd is classified as risky. Despite the stock’s recent price movements, the company’s financial fundamentals do not support a favourable valuation. The stock has underperformed the broader market benchmarks, including the BSE500, over the last three years. While the stock price has delivered a 1-month gain of 18.18% and a year-to-date return of 8.87%, the one-year return remains negative at -10.65%. This disparity suggests that the market may be pricing in some short-term optimism, but the underlying fundamentals warrant caution. The company’s debt-equity ratio remains high at 2.26 times as of the half-year, indicating elevated leverage and financial risk.
Financial Trend Analysis
The financial trend for Anjani Portland Cement Ltd is currently negative. The company’s ability to service its debt is limited, with a Debt to EBITDA ratio of 23.51 times, signalling significant financial strain. Despite a 27.3% rise in profits over the past year, the overall financial health remains precarious due to the high leverage and weak cash flow generation. Dividend payments have been non-existent, with the latest dividend per share recorded at ₹0.00, reflecting the company’s focus on conserving cash amid challenging conditions.
Technical Outlook
Technically, the stock exhibits a mildly bullish trend as of 25 January 2026. Short-term price movements have shown some positive momentum, with a 1-day gain of 0.7% and a 1-week increase of 3.62%. However, this technical strength is insufficient to offset the fundamental and financial weaknesses. Investors should interpret the mild bullishness cautiously, recognising that technical signals alone do not mitigate the broader risks identified in the company’s financial profile.
Implications for Investors
The Strong Sell rating suggests that investors should exercise significant caution with Anjani Portland Cement Ltd. The combination of weak quality metrics, risky valuation, negative financial trends, and only mild technical support indicates that the stock carries considerable downside risk. For investors, this rating implies that the stock is not currently a suitable candidate for accumulation or long-term holding, given the company’s ongoing operational and financial challenges.
Comparative Performance
Over the past year, Anjani Portland Cement Ltd has underperformed key market indices, including the BSE500, which has delivered more robust returns. The stock’s negative 10.65% return over the last 12 months contrasts with the broader market’s positive performance, highlighting the company’s relative weakness. This underperformance is consistent with the company’s deteriorating fundamentals and elevated financial risk profile.
Summary of Key Metrics as of 25 January 2026
- Mojo Score: 24.0 (Strong Sell)
- Operating Profit CAGR (5 years): -211.39%
- Debt to EBITDA Ratio: 23.51 times
- Debt-Equity Ratio (Half Year): 2.26 times
- Return on Equity (Average): 1.77%
- Operating Cash Flow (Yearly): ₹0.12 crore
- Dividend per Share (Yearly): ₹0.00
- 1-Year Stock Return: -10.65%
- 1-Month Stock Return: +18.18%
- Technical Grade: Mildly Bullish
Under the radar no more! This Large Cap from Cement is emerging from turnaround with solid fundamentals intact. Discover it while it's still relatively hidden!
- - Hidden turnaround gem
- - Solid fundamentals confirmed
- - Large Cap opportunity
Conclusion
In conclusion, Anjani Portland Cement Ltd’s current Strong Sell rating reflects a comprehensive evaluation of its financial and operational challenges as of 25 January 2026. While the stock shows some short-term technical strength, the underlying fundamentals and valuation concerns dominate the outlook. Investors should carefully consider these factors before engaging with the stock, recognising the elevated risks and limited prospects for near-term recovery. The rating serves as a clear signal to prioritise capital preservation and seek alternative opportunities with stronger financial health and growth potential.
Unlock special upgrade rates for a limited period. Start Saving Now →
