Stock Performance and Market Context
On 21 Jan 2026, Andhra Petrochemicals Ltd’s share price slipped to Rs.44, the lowest level recorded in the past year. This represents a notable decline from its 52-week high of Rs.71.90, underscoring a substantial depreciation of 38.8% from the peak. The stock has been on a losing streak for three consecutive trading sessions, cumulatively falling by 6.66% during this period. Today’s decline of 2.59% also saw the stock underperform its sector by 0.39%, indicating relative weakness within the commodity chemicals segment.
The broader market environment has been challenging as well. The Sensex opened 385.82 points lower and closed down by 240.32 points at 81,554.33, a 0.76% drop. This marks the third consecutive week of losses for the Sensex, which has declined by 4.91% over this period. While the Sensex trades below its 50-day moving average, the 50DMA remains above the 200DMA, suggesting some underlying support in the broader market despite recent weakness.
Technical Indicators and Moving Averages
Andhra Petrochemicals Ltd is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning highlights the prevailing bearish sentiment and the absence of short- to long-term upward momentum. The consistent trading below these averages often signals sustained selling pressure and a lack of immediate recovery catalysts.
Financial Performance and Profitability Metrics
The company’s financial metrics have contributed to the subdued market sentiment. Over the past year, Andhra Petrochemicals Ltd has generated a negative return of 36.93%, significantly underperforming the Sensex’s positive 7.58% return over the same period. Profitability has also deteriorated, with reported profits falling by 150.5% in the last year. Operating profit has declined at an annualised rate of 243.07% over the past five years, reflecting a challenging earnings trajectory.
Despite these headwinds, the company reported a quarterly profit after tax (PAT) of Rs.2.14 crore, which represents a growth of 121.9% compared to the previous four-quarter average. Net sales for the quarter stood at Rs.167.64 crore, up 30.5% relative to the prior four-quarter average. However, operating profit to interest coverage remains modest at 0.42 times, indicating limited buffer against interest obligations. The company’s dividend yield remains at zero, reflecting the absence of shareholder payouts amid financial pressures.
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Valuation and Risk Considerations
The stock’s current valuation is considered risky relative to its historical averages. Negative EBITDA figures have raised concerns about the company’s earnings quality and cash flow generation. The low debt-to-equity ratio, averaging zero, indicates minimal leverage, which may limit financial risk but also reflects restrained capital deployment. The majority of shares are held by non-institutional investors, which can influence liquidity and trading dynamics.
Andhra Petrochemicals Ltd’s Mojo Score stands at 31.0, with a Mojo Grade of Sell as of 29 May 2025, downgraded from a previous Strong Sell rating. The market capitalisation grade is 4, indicating a relatively small market cap within its sector. These metrics collectively point to subdued market confidence and cautious positioning by investors.
Comparative Performance and Sector Dynamics
Over the last three years, the stock has consistently underperformed the BSE500 index, reflecting persistent challenges in both long-term and near-term performance. The commodity chemicals sector itself has faced headwinds, with fluctuating raw material costs and demand uncertainties impacting earnings across the board. Andhra Petrochemicals Ltd’s relative underperformance within this sector further highlights company-specific factors contributing to its price decline.
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Summary of Key Metrics
To summarise, Andhra Petrochemicals Ltd’s stock has reached a 52-week low of Rs.44, reflecting a significant decline from its high of Rs.71.90. The stock’s three-day losing streak and underperformance relative to its sector and the Sensex highlight ongoing pressures. Financially, the company has experienced a steep decline in operating profit and profits over the past year, despite some recent quarterly improvements in PAT and net sales. The stock’s valuation remains cautious, with a Mojo Grade of Sell and a low market capitalisation grade.
While the company maintains a low debt profile, the negative EBITDA and subdued interest coverage ratio underscore challenges in earnings sustainability. The broader market environment, marked by a falling Sensex and sector headwinds, adds to the context of the stock’s recent price movements.
Conclusion
Andhra Petrochemicals Ltd’s fall to its 52-week low is a reflection of both sectoral pressures and company-specific financial performance. The stock’s technical and fundamental indicators point to a period of subdued momentum and cautious market sentiment. Investors and market participants will continue to monitor the company’s quarterly results and sector developments to gauge any shifts in this trend.
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