Key Events This Week
19 Jan: Stock opens at Rs.70.92, down 0.85%
20 Jan: Technical momentum shifts amid bearish sentiment
21 Jan: Bearish momentum intensifies, stock hits near 52-week low
22 Jan: Valuation upgraded to attractive despite market headwinds
23 Jan: Week closes at Rs.67.96, down 1.93% on the day
Monday, 19 January 2026: Weak Start Amid Broader Market Decline
Andhra Sugars Ltd opened the week at Rs.70.92, marking a decline of 0.85% from the previous Friday’s close of Rs.71.53. The stock’s volume was modest at 4,214 shares traded. This drop occurred alongside a 0.49% fall in the Sensex to 36,650.97, reflecting a cautious market mood. The stock’s price was already near the lower end of its 52-week range (Rs.64.86 to Rs.94.60), signalling vulnerability to further downside.
Tuesday, 20 January 2026: Technical Momentum Shifts Amid Bearish Sentiment
On 20 January, Andhra Sugars declined further by 2.41% to close at Rs.69.21, with volume increasing to 5,420 shares. This day marked a significant technical shift as the stock’s momentum indicators signalled a transition from bearish to mildly bearish, but with an overall negative bias. The Moving Average Convergence Divergence (MACD) remained bearish on weekly charts, while monthly MACD showed mild bullishness, indicating some longer-term stabilisation. However, daily moving averages stayed firmly bearish, confirming short-term selling pressure.
The stock’s Mojo Score was downgraded to 43.0, corresponding to a Sell rating, reflecting deteriorating technical quality. The Sensex fell sharply by 1.82% to 35,984.65, but Andhra Sugars’ 2.41% drop indicated underperformance relative to the benchmark.
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Wednesday, 21 January 2026: Bearish Momentum Intensifies
The bearish trend deepened on 21 January as Andhra Sugars closed at Rs.66.96, down 3.25% on heavy volume of 7,892 shares. This decline brought the stock closer to its 52-week low of Rs.64.86, underscoring persistent selling pressure. Technical indicators confirmed the bearish momentum, with the weekly MACD and Know Sure Thing (KST) oscillators remaining negative. The Relative Strength Index (RSI) hovered in neutral territory, offering no relief from the downtrend.
The Sensex also declined by 0.47% to 35,815.26, but Andhra Sugars’ sharper fall highlighted its relative weakness within the broader market. The company’s Mojo Score further deteriorated to 40.0, maintaining a Sell rating and signalling caution amid ongoing sector volatility.
Thursday, 22 January 2026: Valuation Upgrade Amid Market Headwinds
Despite the recent price weakness, 22 January brought a notable shift in Andhra Sugars’ valuation profile. The stock traded at Rs.69.30, up 3.49% on volume of 5,548 shares, as investors reacted to an upgrade in valuation from fair to attractive. Key metrics such as a price-to-earnings (P/E) ratio of 11.68 and a price-to-book value (P/BV) ratio of 0.55 indicated the stock was undervalued relative to peers and historical averages.
This valuation improvement contrasted with the prevailing bearish technical signals but suggested a potential margin of safety for value-oriented investors. The enterprise value to EBITDA (EV/EBITDA) ratio of 3.52 further supported the stock’s reasonable pricing. However, return metrics remained modest, with a return on capital employed (ROCE) of 7.31% and return on equity (ROE) of 4.73%, reflecting ongoing operational challenges.
The Sensex rose 0.76% to 36,088.66, but Andhra Sugars’ gain was more pronounced, indicating a brief respite from the downtrend.
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Friday, 23 January 2026: Week Closes Lower on Heavy Volume
Andhra Sugars ended the week at Rs.67.96, down 1.93% on the day with a significant volume spike to 12,825 shares. This closing price marked a 4.99% decline from the previous Friday’s close of Rs.71.53, underperforming the Sensex’s 3.31% weekly fall. The stock’s persistent weakness was driven by ongoing bearish technical momentum and sector headwinds, despite the improved valuation metrics announced the previous day.
The Sensex closed at 35,609.90, down 1.33% on the day, reflecting broader market volatility. Andhra Sugars’ volume surge suggested increased trading interest, possibly from investors repositioning amid the stock’s attractive valuation but uncertain near-term outlook.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-01-19 | Rs.70.92 | -0.85% | 36,650.97 | -0.49% |
| 2026-01-20 | Rs.69.21 | -2.41% | 35,984.65 | -1.82% |
| 2026-01-21 | Rs.66.96 | -3.25% | 35,815.26 | -0.47% |
| 2026-01-22 | Rs.69.30 | +3.49% | 36,088.66 | +0.76% |
| 2026-01-23 | Rs.67.96 | -1.93% | 35,609.90 | -1.33% |
Key Takeaways
Bearish Technical Momentum: The week was dominated by negative technical signals, with the stock consistently trading below key moving averages and bearish MACD and KST indicators on weekly charts. This suggests continued near-term downside risk.
Valuation Upgrade: Despite price weakness, Andhra Sugars’ valuation metrics improved to an attractive rating, supported by low P/E and P/BV ratios relative to peers. This presents a potential value opportunity amid sector headwinds.
Volume and Volatility: Trading volumes increased notably on the final day, indicating heightened investor activity. The stock’s price volatility remains elevated, reflecting uncertainty in the commodity chemicals sector.
Relative Underperformance: Andhra Sugars underperformed the Sensex by 1.68% over the week, continuing a trend of weaker returns compared to the broader market and sector peers.
Conclusion
Andhra Sugars Ltd experienced a challenging week marked by persistent bearish momentum and price declines, closing 4.99% lower despite a late-week valuation upgrade signalling potential undervaluation. The stock’s technical indicators remain predominantly negative, cautioning investors about near-term risks. However, improved valuation ratios relative to peers and historical levels may offer a margin of safety for value-focused investors willing to navigate sector volatility. The stock’s underperformance relative to the Sensex underscores the importance of monitoring technical signals and sector dynamics closely before considering new positions.
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