Stock Performance and Market Context
The stock of Andhra Petrochemicals Ltd (Stock ID: 574692) has been on a downward trajectory, culminating in the fresh 52-week low of Rs.40.75. This price point is notably 35.8% below its 52-week high of Rs.63.51, underscoring a sustained period of weakness. Over the past year, the stock has delivered a negative return of -26.85%, contrasting sharply with the Sensex’s positive 11.08% gain over the same period.
On 25 Feb 2026, while the Sensex advanced by 0.78% to close at 82,868.39—just 3.97% shy of its own 52-week high—the stock’s performance remained subdued. Andhra Petrochemicals Ltd’s share price is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a persistent bearish trend despite a slight rebound after four consecutive days of decline.
Financial Metrics Highlight Underlying Concerns
The company’s financial indicators reveal several areas of concern that have contributed to the stock’s decline. The quarterly Profit After Tax (PAT) stands at a loss of Rs.10.77 crores, reflecting a 29.1% decrease compared to the previous four-quarter average. This negative profitability is further emphasised by the company’s Return on Capital Employed (ROCE) for the half-year period, which is at a low of -5.84%.
Operating profit growth over the last five years has been negative at an annualised rate of -212.73%, signalling a prolonged period of contraction in core earnings. Additionally, the company’s cash and cash equivalents have dwindled to Rs.242.00 crores, the lowest recorded in recent periods, which may impact liquidity and operational flexibility.
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Valuation and Risk Profile
Andhra Petrochemicals Ltd’s current valuation metrics suggest elevated risk. The company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) are negative, which is a critical factor in assessing operational viability. The stock’s dividend yield stands at zero, reflecting the absence of shareholder returns through dividends amid financial strain.
Despite a low average Debt to Equity ratio of zero, indicating minimal leverage, the company’s profitability challenges and negative returns have weighed heavily on investor sentiment. Over the past year, profits have declined by 170.6%, a stark contrast to the broader market’s positive trajectory.
Shareholding and Market Grade
The majority of Andhra Petrochemicals Ltd’s shares are held by non-institutional investors, which may influence trading dynamics and liquidity. The company’s Mojo Score currently stands at 17.0, with a Mojo Grade of Strong Sell as of 29 May 2025, an upgrade from the previous Sell rating. The Market Cap Grade is rated at 4, reflecting its relative size and market capitalisation within the sector.
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Comparative Sector and Market Analysis
Within the Commodity Chemicals sector, Andhra Petrochemicals Ltd’s performance has lagged behind peers and broader indices. The stock has underperformed the BSE500 index over the last three years, one year, and three months, highlighting persistent challenges in maintaining competitive growth and returns.
Meanwhile, the broader market environment remains positive, with mega-cap stocks leading the Sensex higher. The Sensex’s 50-day moving average remains above its 200-day moving average, signalling an overall bullish market trend that contrasts with Andhra Petrochemicals Ltd’s subdued momentum.
Summary of Key Financial and Market Indicators
To summarise, Andhra Petrochemicals Ltd’s stock has reached a new 52-week low of Rs.40.75 amid a backdrop of declining profitability, negative returns, and subdued valuation metrics. The company’s financial health is marked by a negative PAT of Rs.10.77 crores, a low ROCE of -5.84%, and shrinking cash reserves. Despite a low debt profile, the stock’s performance remains weak relative to sector peers and market benchmarks.
These factors collectively contribute to the stock’s Strong Sell Mojo Grade and reflect the challenges faced by the company in the current market environment.
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