Andhra Cements Limited (ACL) AI Stock Analysis

• Market Cap: ₹5.19B
• Dividend Yield: N/A
• Average Volume (3M): 5.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.72
• 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: -0.02
• Price to Book (P/B): 3.34
• Price to Sales (P/S): 1.76
• P/FCF Ratio: -19.26
• 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: ₹54.00 ▼(-19.34% Downside)

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

Sustained double-digit revenue growth indicates underlying demand traction for the core cement business. Over a multi-month horizon this supports revenue stability, helps absorb fixed costs, and provides a platform for margin recovery if operational efficiency and pricing discipline are maintained.

Broad Customer Base

Serving distributors, retailers, contractors and institutional buyers diversifies demand sources and reduces single-segment concentration risk. This structural diversity supports more stable volumes across construction cycles and aids distribution reach and long-term revenue resilience.

Lower Market Volatility

A below‑market beta suggests the company's earnings and stock historically show lower sensitivity to broad market swings. Structurally this can indicate more predictable cash flows or regional exposure that cushions returns through economic fluctuations, aiding planning and financing.

Negative Factors

Persistent Net Losses

Ongoing net losses erode equity, limit retained earnings and undermine the firm's ability to self-fund investments. Over months this constrains capital allocation, makes turnaround dependent on sustained operational fixes, and weakens stakeholder confidence in longer-term recovery.

High Leverage

Significant debt relative to equity increases fixed interest obligations and refinancing risk. Structurally, high leverage reduces financial flexibility, raises vulnerability to rate rises or lower cash flow, and limits capacity to invest in capacity, maintenance, or strategic initiatives.

Negative and Inconsistent Cash Flow

Erratic or negative operating cash flow undermines the company’s ability to fund working capital, capex and debt servicing internally. Over a multi-month horizon this forces reliance on external financing, increases cost of capital and constrains execution of long-term operational improvements.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Positive
• 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 63.19, below the 50-day MA of 67.51, and below the 200-day MA of 70.85, indicating a bearish trend. The MACD of -3.32 indicates Positive momentum. The RSI at 36.96 is Neutral, neither overbought nor oversold. The STOCH value of 21.23 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	₹7.41B	11.41	―	3.24%	-9.47%	-54.96%
KAKATCEM	53 Neutral	₹885.83M	-3.26	―	2.30%	-32.19%	-1097.08%
SAURASHCEM	53 Neutral	₹7.95B	23.11	―	2.39%	2.37%	55.27%
APCL	51 Neutral	₹3.97B	-9.47	―	―	-3.03%	27.30%
SHREDIGCEM	50 Neutral	₹10.83B	28.84	―	1.66%	3.09%	-50.15%
ACL	41 Neutral	₹5.19B	-3.13	―	―	8.17%	-67.80%