Andhra Cements Ltd (ACL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sahyadri Industr

NCL Industries

Visaka Industrie

Kesoram Inds.

BIGBLOC Const.

Deccan Cements

Shri Keshav

Saurashtra Cem.

Andhra Cements

Shiva Cement

Anjani Portland

Why is Andhra Cements Ltd ?

With HIgh Debt (Debt-Equity Ratio at 13.87 times)- the company has a Weak Long Term Fundamental Strength

Poor long term growth as Operating profit has grown by an annual rate 0% of over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 70.18 times

Risky - Negative Operating Profits

The company has recorded a negative EBIT of Rs. -68.39 cr
Over the past year, while the stock has generated a return of -3.11%, its profits have risen by 54%
The stock is trading risky as compared to its average historical valuations

31.67% of Promoter Shares are Pledged

In falling markets, high promoter pledged shares puts additional downward pressure on the stock prices
The proportion of pledged holdings has increased by 5.28% over the last quarter

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -3.11% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Cement & Cement Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Andhra Cements for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Andhra Cements

-2.59%

-0.06

43.03%

Sensex

-7.63%

-0.58

12.97%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

238.34%

EBIT Growth (5y)

2.09%

EBIT to Interest (avg)

-0.21

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

13.87

Sales to Capital Employed (avg)

0.28

Tax Ratio

Dividend Payout Ratio

Pledged Shares

31.67%

Institutional Holding

0.34%

ROCE (avg)

-29.99%

ROE (avg)

3.07%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

6.28

EV to EBIT

-23.79

EV to EBITDA

101.29

EV to Capital Employed

1.36

EV to Sales

3.68

PEG Ratio

Dividend Yield

ROCE (Latest)

-5.70%

ROE (Latest)

-83.18%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

23What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 9.54 times

NET SALES(Q)

Highest at Rs 154.85 cr

PBDIT(Q)

Highest at Rs 8.83 cr.

PAT(Q)

Highest at Rs 48.52 cr.

EPS(Q)

Highest at Rs 5.26

-12What is not working for the Company

DEBT-EQUITY RATIO(HY)

Highest at 13.96 times

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 7.32 cr

INTEREST(Q)

Highest at Rs 30.21 cr

PBT LESS OI(Q)

Lowest at Rs -48.49 cr.

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Here's what is working for Andhra Cements

Profit After Tax (PAT) - Quarterly

At Rs 48.52 cr has Grown at 211.2%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly

At Rs 154.85 cr has Grown at 73.07%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Net Sales - Quarterly

Highest at Rs 154.85 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 8.83 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 48.52 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 5.26

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Debtors Turnover Ratio- Half Yearly

Highest at 9.54 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Andhra Cements

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -48.49 cr has Fallen at -11.88%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Debt-Equity Ratio - Half Yearly

Highest at 13.96 times and Grown

each half year in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Interest - Quarterly

Highest at Rs 30.21 cr

in the last five quarters and Increased by 14.74 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs -48.49 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 7.32 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents