Is Andhra Cements overvalued or undervalued?

As of May 11, 2023, Andhra Cements is considered overvalued and risky due to its negative financial metrics, including a PE ratio of -4.38 and an EV to EBITDA of -46.96, despite a recent short-term stock performance that outpaced the Sensex.

As of 11 May 2023, Andhra Cements has moved from a grade of "does not qualify" to "risky," indicating a significant shift in its valuation outlook. The company appears to be overvalued given its negative PE ratio of -4.38, an EV to EBITDA of -46.96, and a ROE of -100.90%. These figures suggest severe financial distress and inefficiency in generating returns for shareholders.<BR><BR>In comparison to its peers, Andhra Cements stands out unfavorably; for instance, UltraTech Cement has a PE ratio of 52.27, while Grasim Industries boasts a PE of 43.9, both indicating a much healthier financial position. The stark contrast in valuation metrics highlights Andhra Cements' precarious standing in the cement industry. Although the stock has outperformed the Sensex in the short term, with a 1-month return of 31.25% compared to the Sensex's 3.84%, the long-term outlook remains concerning, reinforcing the conclusion that the company is overvalued.

What does Andhra Cements do?

Andhra Cements Ltd manufactures and sells cement and related products, categorized as a Micro Cap company. As of March 2025, it reported net sales of ₹89 Cr and a net loss of ₹50 Cr, with a market cap of ₹635 Cr.

Overview:<BR>Andhra Cements Ltd is engaged in the manufacturing and selling of cement and cement-related products within the Cement & Cement Products industry, categorized as a Micro Cap company.<BR><BR>History:<BR>Andhra Cements Ltd was incorporated in December 1936 and was originally promoted and owned by the Sadu Jain Group. The company has undergone status changes, including a name change from Andhra Cement Company Limited. The latest quarterly results reported net sales and net profit for the period ending March 2025.<BR><BR>Financial Snapshot:<BR>- Net Sales: 89 Cr (Quarterly Results - Mar 2025)<BR>- Net Profit: -50 Cr (Quarterly Results - Mar 2025)<BR>- Market-cap: Rs 635 Cr (Micro Cap)<BR><BR>Key Metrics:<BR>- P/E: N/A (Loss Making)<BR>- Industry P/E: 46<BR>- Dividend Yield: 0.00%<BR>- Debt Equity: 5.09<BR>- Return on Equity: -100.90%<BR>- Price to Book: 4.34<BR><BR>Contact Details:<BR>Address: Durga Cement Works, Sri Durgapuram Dachepalli Guntur Andhra Pradesh : 522414<BR>Tel: 91-8649-257413<BR>Email: investorcell@andhracements.com<BR>Website: http://www.andhracements.com

Has Andhra Cements declared dividend?

No Dividend History Available

Who are the peers of the Andhra Cements?

Peers of Andhra Cements include UltraTech Cement, Grasim Industries, Ambuja Cements, Shree Cement, and others. Andhra Cements has below-average management risk and growth, with a 1-year return of -22.54%.

Peers: The peers of Andhra Cements are UltraTech Cem., Grasim Inds, Ambuja Cements, Shree Cement, J K Cements, Anjani Portland, Sahyadri Industr, Shri Keshav, Kanoria Energy, and Kesoram Inds.<BR><BR>Quality Snapshot: Excellent management risk is observed at UltraTech Cem., Grasim Inds, Shree Cement, J K Cements, and Sahyadri Industr, while Average management risk is found at Ambuja Cements, Kanoria Energy, and the rest. Below Average management risk is noted at Andhra Cements, Anjani Portland, Shri Keshav, and the rest. Growth is rated as Good for Grasim Inds, while Average growth is seen at UltraTech Cem. and the rest. Below Average growth is observed at Ambuja Cements, Shree Cement, J K Cements, Andhra Cements, Anjani Portland, Sahyadri Industr, Shri Keshav, Kanoria Energy, and Kesoram Inds. Capital Structure is rated as Excellent for Ambuja Cements and Shree Cement, Good for UltraTech Cem. and Sahyadri Industr, while Below Average is noted for Grasim Inds, Andhra Cements, Anjani Portland, Shri Keshav, Kanoria Energy, and Kesoram Inds.<BR><BR>Return Snapshot: The peer with the highest 1-year return is J K Cements at 36.66%, while the lowest is Ambuja Cements at -17.78%. Andhra Cements has a 1-year return of -22.54%, which is lower than both of these peers. Additionally, the six-month return is negative for Andhra Cements, Ambuja Cements, Shree Cement, J K Cements, Anjani Portland, Shri Keshav, Kanoria Energy, and Kesoram Inds.

Who are in the management team of Andhra Cements?

As of March 2023, the management team of Andhra Cements includes G Tirupathi Rao (General Manager & Company Secretary), S Anand Reddy (Managing Director), K V Vishnu Raju (Chairman & Independent Director), and several independent directors, ensuring a balanced governance structure.

As of March 2023, the management team of Andhra Cements includes the following individuals:<BR><BR>1. G Tirupathi Rao - General Manager & Company Secretary<BR>2. V H Ramakrishnan - Independent Director<BR>3. K V Vishnu Raju - Chairman & Independent Director<BR>4. Rekha Onteddu - Independent Director<BR>5. S Anand Reddy - Managing Director<BR>6. R Ravichandran - Independent Director<BR>7. S Sreekanth Reddy - Director<BR>8. S Rachana - Director<BR><BR>This team comprises a mix of executive and independent directors, contributing to the governance and management of the company.

Who are the top shareholders of the Andhra Cements?

The top shareholders of Andhra Cements include Sagar Cements Limited, which holds 90% of the shares, while individual investors own 7.87%. There are no holdings by mutual funds or foreign institutional investors, and 26.39% of the promoter shares are pledged.

The top shareholders of Andhra Cements primarily consist of promoters, with Sagar Cements Limited holding the largest share at 90%. Additionally, there is a pledged promoter holding of 26.3889%. Individual investors collectively hold 7.87% of the shares. There are currently no holdings by mutual funds or foreign institutional investors (FIIs).

How big is Andhra Cements?

As of 24th July, Andhra Cements Ltd has a market capitalization of 644.00 Cr and reported Net Sales of 310.19 Cr, with a Net Profit loss of 158.14 Cr over the latest four quarters. Shareholder's Funds are valued at 144.55 Cr, and Total Assets amount to 1,014.80 Cr.

As of 24th July, Andhra Cements Ltd has a market capitalization of 644.00 Cr, classifying it as a Micro Cap company.<BR><BR>In the latest four quarters, Andhra Cements reported Net Sales of 310.19 Cr. However, the company experienced a loss of 158.14 Cr in Net Profit during the same period.<BR><BR>The latest reporting period for the balance sheet is March 2025. Shareholder's Funds are valued at 144.55 Cr, while Total Assets amount to 1,014.80 Cr.

When is the next results date for Andhra Cements?

The next results date for Andhra Cements is 23 October 2025.

The next results date for Andhra Cements is scheduled for 23 October 2025.

Are Andhra Cements latest results good or bad?

Andhra Cements' latest results are concerning, showing a 41.91% year-on-year revenue growth but a 21.78% decline in net sales from the previous quarter, alongside a net loss of ₹41.92 crores and a negative operating margin of -5.75%. Despite some revenue increase, the company's ongoing losses and high debt levels indicate a challenging financial situation.

Andhra Cements' latest results indicate a challenging situation for the company. In the second quarter of FY26, while the company reported a year-on-year revenue growth of 41.91%, net sales of ₹77.85 crores were down 21.78% compared to the previous quarter. This decline in revenue is concerning, especially given the typically stronger demand during this period.<BR><BR>The company continues to face significant operational challenges, with a net loss of ₹41.92 crores for the quarter, which is an increase in losses compared to the previous quarter. The operating margin is deeply negative at -5.75%, reflecting ongoing inefficiencies and difficulties in managing costs. Additionally, the company's debt burden remains high at ₹757 crores, which adds to its financial stress.<BR><BR>Overall, despite some positive revenue growth, the persistent losses, negative operating margins, and high debt levels suggest that the latest results are not good. The company is struggling to translate revenue growth into profitability, and the outlook remains uncertain. Investors should be cautious given the structural issues that have plagued Andhra Cements for years.

How has been the historical performance of Andhra Cements?

Andhra Cements has shown significant financial fluctuations, with net sales increasing slightly to 274.05 crore in March 2025, but reporting substantial losses, including a profit after tax of -152.11 crore and an operating profit of -21.76 crore. Despite a positive cash flow from operations, the company faces increasing liabilities and ongoing challenges.

Answer:<BR>The historical performance of Andhra Cements shows significant fluctuations in its financial metrics over the years, particularly from 2019 to 2025.<BR><BR>Breakdown:<BR>Andhra Cements experienced net sales of 274.05 crore in March 2025, a slight increase from 268.11 crore in March 2024, following a period of no sales in the previous two years. The total operating income mirrored this trend, rising to 274.05 crore in March 2025 from 268.11 crore in March 2024. However, total expenditure increased to 303.30 crore in March 2025, leading to an operating profit (PBDIT) of -21.76 crore, down from a positive 5.27 crore in March 2024. The company reported a profit before tax of -174.51 crore in March 2025, worsening from -106.89 crore in the prior year, and a profit after tax of -152.11 crore, compared to -65.61 crore in March 2024. The earnings per share (EPS) reflected this decline, falling to -16.5 in March 2025 from -7.12 in March 2024. On the balance sheet, total liabilities increased to 1,014.80 crore in March 2025, up from 972.45 crore in March 2024, while total assets also rose to 1,014.80 crore from 972.45 crore. The cash flow from operating activities showed a positive trend with 59 crore in March 2025, compared to -26 crore in March 2024, although the net cash outflow was -10 crore in March 2025. Overall, the financial performance of Andhra Cements indicates a challenging environment with significant losses and increasing liabilities despite a slight recovery in sales.

Should I buy, sell or hold Andhra Cements?

Is Andhra Cements technically bullish or bearish?

As of December 1, 2025, the technical trend has shifted to mildly bearish, supported by bearish signals from MACD, KST, Dow Theory, and Bollinger Bands, despite a mildly bullish daily moving average.

As of 1 December 2025, the technical trend has changed from sideways to mildly bearish. The current stance is mildly bearish, driven by the weekly and monthly MACD, KST, and Dow Theory all indicating a bearish outlook. The Bollinger Bands also confirm a bearish signal on both time frames. Although the daily moving averages show a mildly bullish trend, the overall sentiment remains negative due to the prevailing bearish indicators. The stock has underperformed compared to the Sensex over multiple periods, further supporting the bearish outlook.

Which are the latest news on Andhra Cements?

Why is Andhra Cements falling/rising?

As of 05-Dec, Andhra Cements Ltd's stock price is currently at 73.25, showing recent upward movement with a 1.74% gain over the last two days. However, it has a year-to-date decline of 13.64%, indicating a longer-term downward trend despite short-term gains.

As of 05-Dec, Andhra Cements Ltd's stock price is rising, currently at 73.25, with a change of 0.17 (0.23%) upwards. The stock has shown positive performance recently, outperforming its sector by 0.43% today and has been gaining for the last two days, accumulating a total return of 1.74% during this period. Additionally, over the past week, the stock has increased by 2.45%, while the benchmark Sensex has only seen a marginal increase of 0.01%. <BR><BR>However, it is important to note that despite the recent gains, the stock has a year-to-date decline of 13.64% and a one-year decline of 16.02%, indicating a longer-term downward trend. The stock's current price is higher than its 5-day and 200-day moving averages, but lower than its 20-day, 50-day, and 100-day moving averages, suggesting mixed signals regarding its performance relative to these averages.<BR><BR>Investor participation appears to be declining, as evidenced by a significant drop in delivery volume, which fell by 44.98% compared to the 5-day average. Despite this decrease in participation, the stock remains liquid enough for trading, indicating that there is still some level of interest among investors. Overall, the recent upward movement in stock price can be attributed to short-term gains and sector outperformance, despite the backdrop of longer-term declines.