Andhra Cements Limited (ACL) AI Stock Analysis

• Market Cap: ₹4.43B
• Dividend Yield: N/A
• Average Volume (3M): 5.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• 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

Structural end-market demand

Cement is a core input for long-duration construction and infrastructure projects. ACL’s focus on selling cement to dealers, contractors and institutional buyers ties revenues to structural building activity, providing persistent baseline demand that supports revenue visibility over months.

Recent revenue growth trend

A reported ~36% revenue growth indicates improving top-line traction versus prior periods. If sustained, this growth supports better utilization of fixed assets and can help stabilize margins and cash generation over a 2–6 month horizon as dispatches and regional pricing recover.

Diversified customer mix

Serving a mix of trade and institutional customers spreads demand risk and reduces dependency on any single channel. This customer diversity helps smooth volumes seasonally and across project cycles, supporting more stable revenue streams and predictable dispatch patterns over the medium term.

Negative Factors

Persistent unprofitability

Consistent negative EBITDA and net losses indicate the company is not generating operating profits to cover costs. Over months, continued unprofitability undermines the ability to self-fund maintenance and growth, strains margins versus peers, and can erode competitive position in a capital-intensive sector.

High leverage and weak equity

A stretched balance sheet with high debt and low equity limits financial flexibility. In an industry that requires steady capex and working capital, elevated leverage raises refinancing and interest coverage risks, reducing resilience to demand fluctuations and increasing bankruptcy risk if losses persist.

Inconsistent and negative cash flow

Irregular operating cash generation and negative free cash flow constrain the company’s ability to invest in plant, sustain operations, or deleverage. Reliance on external funding becomes necessary, heightening funding cost and execution risk for capex and working capital over the coming months.

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	2.97B	2.74B	2.66B	0.00	0.00	1.03M
Gross Profit	1.55B	2.51B	38.80M	-467.92M	-465.83M	-4.89M
EBITDA	-229.40M	-280.20M	200.60M	9.46B	-306.11M	-277.88M
Net Income	-1.59B	-1.52B	-656.10M	9.50B	-2.36B	-2.05B
Balance Sheet
Total Assets	13.29B	11.44B	10.80B	9.09B	8.63B	9.39B
Cash, Cash Equivalents and Short-Term Investments	344.10M	247.20M	119.40M	530.30M	53.00K	53.00K
Total Debt	9.31B	7.57B	6.75B	5.25B	9.70B	9.63B
Total Liabilities	12.53B	10.00B	7.83B	5.54B	17.79B	16.19B
Stockholders Equity	762.00M	1.45B	2.97B	3.55B	-9.17B	-6.80B
Cash Flow
Free Cash Flow	-1.22B	-250.40M	-1.41B	-283.40M	1.51B	1.19B
Operating Cash Flow	19.90M	595.50M	-267.20M	-10.10M	1.51B	1.19B
Investing Cash Flow	-1.35B	-805.90M	-959.50M	-351.30M	5.88M	33.00M
Financing Cash Flow	1.33B	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 53.33, above the 50-day MA of 57.49, and below the 200-day MA of 70.29, indicating a bearish trend. The MACD of -1.68 indicates Positive momentum. The RSI at 31.38 is Neutral, neither overbought nor oversold. The STOCH value of 30.11 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	₹6.28B	20.52	―	3.24%	-9.47%	-54.96%
SAURASHCEM	55 Neutral	₹6.14B	-22.13	―	2.39%	2.37%	55.27%
KAKATCEM	54 Neutral	₹751.73M	-5.21	―	2.30%	-32.19%	-1097.08%
APCL	51 Neutral	₹3.21B	-4.95	―	―	-3.03%	27.30%
SHREDIGCEM	44 Neutral	₹8.20B	-48.17	―	1.66%	3.09%	-50.15%
ACL	40 Underperform	₹4.43B	-3.47	―	―	8.17%	-67.80%

Andhra Cements Limited Corporate Events

Andhra Cements Achieves Minimum Public Shareholding After Promoter Stake Sale

Andhra Cements Limited announced that its promoter, Sagar Cements Limited, has sold 6,676,843 equity shares, representing 7.24% of the company’s paid-up equity capital, through an offer for sale conducted on the stock exchanges between March 17 and March 18, 2026. This transaction was executed in line with SEBI regulations to increase public shareholding and comply with minimum public shareholding norms.

Following the sale, Sagar Cements’ promoter stake in Andhra Cements declined from 82.24% to 75%, while public shareholding rose to 25%, thereby meeting the mandated threshold under Indian securities regulations within the prescribed timeframe. The move brings Andhra Cements into full compliance with listing requirements, broadens its public float, and may enhance the stock’s market liquidity and accessibility for investors.