Stock Price Movement and Market Context
On 26 Feb 2026, Andhra Petrochemicals Ltd’s stock closed at Rs.39.95, down by 0.83% on the day. This decline placed the share below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. The stock’s performance today lagged the Commodity Chemicals sector by 2.09%, highlighting relative weakness within its industry group.
In contrast, the broader market showed resilience. The Sensex opened 142.71 points higher and was trading at 82,451.02, up 0.21%. The benchmark index remains within 4.5% of its 52-week high of 86,159.02, supported by gains in mega-cap stocks. Despite this positive market environment, Andhra Petrochemicals Ltd’s shares have not participated in the rally, underscoring company-specific concerns.
Long-Term and Recent Performance Trends
Over the past year, Andhra Petrochemicals Ltd’s stock has declined by 28.17%, a stark contrast to the Sensex’s 10.51% gain over the same period. The stock’s 52-week high was Rs.63.51, indicating a significant erosion in value from its peak. This underperformance extends beyond the last year, with the company lagging the BSE500 index over the last three years, one year, and three months.
Such sustained weakness reflects challenges in both the company’s earnings trajectory and market sentiment. The stock’s Mojo Score currently stands at 17.0, with a Mojo Grade of Strong Sell, an upgrade from the previous Sell rating as of 29 May 2025. This grading reflects deteriorating fundamentals and valuation concerns.
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Financial Metrics and Profitability Concerns
Andhra Petrochemicals Ltd’s financial indicators reveal pressures on profitability and returns. The company’s operating profit has contracted at an annualised rate of -212.73% over the last five years, signalling a prolonged decline in core earnings capacity. This trend has weighed heavily on investor confidence and valuation.
In the most recent quarter, the company reported a net loss (PAT) of Rs.10.77 crore, representing a 29.1% decline compared to the previous four-quarter average. The return on capital employed (ROCE) for the half-year period stands at a negative -5.84%, the lowest recorded, indicating inefficiencies in capital utilisation.
Cash and cash equivalents have also diminished, with the latest half-year figure at Rs.242.00 crore, the lowest level in recent periods. This reduction in liquidity may constrain the company’s ability to fund operations or invest in growth initiatives.
Valuation and Risk Profile
The stock’s valuation metrics suggest elevated risk relative to historical norms. Andhra Petrochemicals Ltd is trading at levels that imply a negative EBITDA, a key indicator of operational cash flow challenges. Over the past year, profits have fallen by 170.6%, compounding concerns about earnings sustainability.
Despite the decline in share price, the company currently offers a dividend yield of zero, reflecting the absence of dividend payouts amid financial strain. The company’s debt-to-equity ratio remains low, averaging zero, which indicates limited leverage but also suggests constrained financial flexibility.
Shareholding patterns show that the majority of shares are held by non-institutional investors, which may influence trading dynamics and liquidity.
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Summary of Performance and Market Position
In summary, Andhra Petrochemicals Ltd’s stock has reached a new 52-week low of Rs.39.95 amid a backdrop of declining profitability, negative returns on capital, and reduced cash reserves. The stock’s underperformance relative to the Sensex and its sector highlights ongoing challenges in maintaining competitive positioning within the commodity chemicals industry.
While the company maintains a low debt profile, the negative earnings trends and valuation risks have contributed to a Strong Sell Mojo Grade, reflecting cautious market sentiment. The stock’s failure to keep pace with broader market gains and its position below all key moving averages further underscore the subdued outlook reflected in current pricing.
Market and Sector Overview
The Commodity Chemicals sector, in which Andhra Petrochemicals Ltd operates, has experienced mixed performance, with some peers showing resilience. The Sensex’s current strength, led by mega-cap stocks, contrasts with the stock’s weakness, indicating company-specific factors driving the decline rather than sector-wide trends.
Investors and market participants continue to monitor the company’s financial disclosures and market developments closely as the stock navigates this low price territory.
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