Andhra Cements Limited (ACL) AI Stock Analysis

• Market Cap: ₹5.11B
• Dividend Yield: N/A
• Average Volume (3M): 5.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.78
• Revenue Growth: 8.17%
• EPS Growth: -67.80%
• Country: IN
• Employees: 179
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): -4.79
• Shares Outstanding: 92,172,140
• 10 Day Avg. Volume: 2,759
• 30 Day Avg. Volume: 5,424
• PEG Ratio: 0.11
• Price to Book (P/B): 2.53
• Price to Sales (P/S): 2.83
• P/FCF Ratio: -5.35
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: ₹53.00 ▼(-20.84% Downside)
• Action: Reiterated Date: 10/15/25
• Date: Action: Reiterated 10/15/25

The most significant factor impacting Andhra Cements Limited's stock score is its poor financial performance, characterized by persistent losses and high leverage. Technical analysis indicates a bearish trend with weak momentum, while valuation metrics are unattractive due to a negative P/E ratio and no dividend yield. These factors collectively result in a low overall stock score.

Positive Factors

Revenue Growth

Reported revenue growth of ~36% signals meaningful top-line expansion that can support scale benefits and improved unit economics over the medium term. If sustained, this trend helps rebuild margins, leverage fixed-cost absorption, and create room for reinvestment into operations.

Essential Product & Diversified Customers

Cement is a fundamental input for construction and infrastructure, providing structurally stable demand. ACL’s described mix of dealers, retailers, contractors and institutional clients reduces customer concentration risk and supports recurring volume opportunities across market cycles.

Lower Market Volatility (Beta)

A beta materially below 1 indicates lower equity volatility versus the market, which supports more predictable financing costs and operational planning. Persistently lower sensitivity to market swings can aid in negotiating credit and executing multi‑quarter restructuring or turnaround initiatives.

Negative Factors

Persistent Net Losses

Consistent net losses erode retained earnings and equity, limiting the company’s ability to self‑fund investments or withstand cyclical downturns. Over months this constrains strategic flexibility, reduces creditworthiness, and makes operational improvement dependent on external capital or deep restructuring.

High Leverage

A high debt burden with low equity amplifies default and refinancing risk, especially in a capital‑intensive sector. Elevated interest and principal obligations crowd out capex and working capital spending, making sustainable margin recovery and long‑term growth harder without deleveraging.

Negative / Inconsistent Cash Flow

Negative and erratic operating cash flows limit the firm's ability to fund maintenance capex and growth, forcing reliance on external financing. Over a multi‑month horizon this undermines operational stability, increases financing costs, and constrains execution of strategic initiatives.

Andhra Cements Limited Business Overview & Revenue Model

Company Description

Andhra Cements Ltd. engages in the manufacturing, distribution, and selling of cement and cement related products. The company was founded on December 9, 1936 and is headquartered in Hyderabad, India.

How the Company Makes Money

Andhra Cements Limited generates revenue primarily through the sale of cement and clinker, which are its core products. The company sells its cement under various brand names, targeting both retail and bulk customers, including construction companies and infrastructure developers. Key revenue streams include direct sales to distributors and retailers, as well as contracts for bulk supply to major construction projects. Additionally, ACL may engage in partnerships with construction firms and government entities for long-term projects, which can provide a steady income source. The company’s profitability is influenced by factors such as production capacity, market demand, pricing strategies, and operational efficiencies. Furthermore, any investments in newer technologies or expansion initiatives can also contribute to revenue growth.

Andhra Cements Limited Financial Statement Overview

Summary

Andhra Cements Limited faces significant financial challenges, including inconsistent revenue, persistent losses, high leverage, and negative free cash flow. These factors contribute to financial instability and potential risks. Improvement in operational efficiency and financial restructuring is essential for future sustainability.

Income Statement

Andhra Cements Limited has shown inconsistent revenue performance with periods of zero revenue and negative profitability. The gross profit margin is volatile due to fluctuating gross profits. The company has consistently incurred net losses, which negatively impacts the net profit margin. EBITDA and EBIT margins have been negative, indicating significant operational challenges.

Balance Sheet

The balance sheet shows high leverage with a concerning debt-to-equity ratio due to significant total debt and low equity. Return on Equity is negative due to consistent net losses. The equity ratio is low, reflecting a high proportion of liabilities to assets, which might indicate financial instability.

Cash Flow

Cash flow from operations has been inconsistent, with some periods of negative cash flow. Free cash flow has also been negative in recent years, impacting the company's ability to invest and grow. The operating cash flow to net income ratio is distorted by negative net income, indicating inefficiencies in converting income to cash.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2021
Income Statement
Total Revenue	2.74B	2.74B	2.66B	0.00	0.00	1.03M
Gross Profit	1.45B	2.51B	38.80M	-467.92M	-465.83M	-4.89M
EBITDA	-280.20M	-280.20M	200.60M	9.46B	-306.11M	-277.88M
Net Income	-1.52B	-1.52B	-656.10M	9.50B	-2.36B	-2.05B
Balance Sheet
Total Assets	0.00	11.44B	10.80B	9.09B	8.63B	9.39B
Cash, Cash Equivalents and Short-Term Investments	1.90M	247.20M	119.40M	530.30M	53.00K	53.00K
Total Debt	0.00	7.57B	6.75B	5.25B	9.70B	9.63B
Total Liabilities	-1.45B	10.00B	7.83B	5.54B	17.79B	16.19B
Stockholders Equity	1.45B	1.45B	2.97B	3.55B	-9.17B	-6.80B
Cash Flow
Free Cash Flow	0.00	-250.40M	-1.41B	-283.40M	1.51B	1.19B
Operating Cash Flow	0.00	595.50M	-267.20M	-10.10M	1.51B	1.19B
Investing Cash Flow	0.00	-805.90M	-959.50M	-351.30M	5.88M	33.00M
Financing Cash Flow	0.00	105.20M	896.80M	798.30M	-1.51B	-1.22B

Andhra Cements Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 66.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ACL, the sentiment is Negative. The current price of 66.95 is above the 20-day moving average (MA) of 56.94, above the 50-day MA of 62.03, and below the 200-day MA of 70.86, indicating a bearish trend. The MACD of -1.97 indicates Negative momentum. The RSI at 38.20 is Neutral, neither overbought nor oversold. The STOCH value of 28.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ACL.

Andhra Cements Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
KUANTUM	60 Neutral	₹7.85B	14.60	―	3.24%	-9.47%	-54.96%
KAKATCEM	53 Neutral	₹873.39M	-3.18	―	2.30%	-32.19%	-1097.08%
SAURASHCEM	53 Neutral	₹7.31B	25.65	―	2.39%	2.37%	55.27%
APCL	51 Neutral	₹3.72B	-9.10	―	―	-3.03%	27.30%
SHREDIGCEM	50 Neutral	₹10.21B	28.86	―	1.66%	3.09%	-50.15%
ACL	41 Neutral	₹5.11B	-3.08	―	―	8.17%	-67.80%