Andhra Cements Limited (ACL) AI Stock Analysis

• Market Cap: ₹4.87B
• 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: 40 Underperform
• Price Target: ₹50.00 ▼(-25.32% Downside)
• Action: Downgraded Date: 03/03/26
• Date: Action: Downgraded 03/03/26

The score is driven primarily by very weak financial performance (persistent losses, high leverage, and negative free cash flow). Technicals also weigh on the rating due to a clear downtrend across major moving averages and negative MACD. Valuation offers limited support because the negative P/E reflects unprofitability and no dividend yield is available.

Positive Factors

Stable end-market demand

Andhra Cements serves construction and infrastructure, sectors with multi-year structural demand driven by housing and public works. A core focus on cement provides a steady addressable market and underpins long-term revenue potential when execution and distribution are maintained.

Recent revenue growth

Reported revenue growth of ~36% indicates the company can expand sales or recover volumes, a durable sign if sustained through dispatch expansion or pricing power. Persistent top-line improvement supports capacity utilization and the potential to stabilize margins over multiple quarters.

Focused core business model

A concentrated business model centered on cement sales yields operational focus and repeatable unit economics. Long-term advantages include specialization in production and distribution, potential supply-chain efficiencies, and clearer prioritization of capex and working-capital to support core growth.

Negative Factors

High leverage

Material leverage and low equity reduce financial flexibility, raising refinancing and interest-rate risks over the medium term. High debt servicing needs constrain capital allocation for maintenance capex, distribution expansion, or working capital, increasing vulnerability to cyclical demand shocks.

Persistent losses and negative margins

Chronic net losses and negative operating margins indicate structural profitability issues: cost structure, pricing, or utilization shortfalls. Without margin recovery, retained losses erode equity, limit reinvestment, and impair the company's ability to compete or fund modernization over the next several quarters.

Negative and inconsistent cash flow

Erratic operating cash flow and recent negative free cash flow weaken the firm's ability to internally fund operations and service debt. Over 2–6 months this heightens reliance on external financing, increasing default or restructuring risk and limiting strategic investments like capacity upgrades.

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

Very weak fundamentals: inconsistent/periods of zero revenue, persistent net losses with negative EBITDA/EBIT margins, high leverage with low equity (negative ROE), and inconsistent operating cash flow with negative recent free cash flow.

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 56.68, above the 50-day MA of 61.68, and below the 200-day MA of 70.84, indicating a bearish trend. The MACD of -2.08 indicates Negative momentum. The RSI at 31.15 is Neutral, neither overbought nor oversold. The STOCH value of 28.48 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	₹7.38B	14.60	―	3.24%	-9.47%	-54.96%
SAURASHCEM	55 Neutral	₹7.10B	24.90	―	2.39%	2.37%	55.27%
KAKATCEM	53 Neutral	₹814.31M	-2.96	―	2.30%	-32.19%	-1097.08%
APCL	51 Neutral	₹3.65B	-8.94	―	―	-3.03%	27.30%
SHREDIGCEM	50 Neutral	₹10.07B	28.86	―	1.66%	3.09%	-50.15%
ACL	40 Underperform	₹4.87B	-2.94	―	―	8.17%	-67.80%