Andhra Cements Limited (ACL) AI Stock Analysis

• Market Cap: ₹4.91B
• Dividend Yield: N/A
• Average Volume (3M): 5.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.83
• 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

Essential product demand

Cement is a foundational input for construction and infrastructure. ACL's core focus on cement ties its revenue to durable end-market demand from housing and public works. This structural exposure supports steady long-term volume opportunities even amid short-term cycles.

Recent revenue growth

A reported ~36% revenue growth indicates improving top-line momentum versus prior periods. Sustained revenue expansion can provide the base needed to leverage fixed costs, restore margins, and fund necessary operational fixes if management converts growth into stable dispatches and realizations.

Diversified customer mix

A mix of trade, retail, contractor and institutional customers reduces concentration risk and smooths demand across channels. This distribution breadth supports more predictable sales volumes and limits exposure to any single buyer segment, aiding revenue stability over months.

Negative Factors

Persistent losses & volatile revenue

Consistent net losses and episodes of zero or volatile revenue undermine profitability and the firm's ability to achieve operating leverage. Persistent negative margins erode retained capital, limit reinvestment capability, and impair options to stabilize operations without material restructuring or external support.

High leverage and weak equity

Significant debt relative to equity raises refinancing and interest service risk. High leverage reduces financial flexibility to invest, absorb demand shocks, or pursue efficiency programs, increasing probability of credit stress if operating cash flows do not recover consistently.

Negative and inconsistent cash flow

Erratic operating cash flow and negative free cash flow impair the company's ability to fund capital needs, repay debt, and invest in distribution or efficiency. Reliance on external financing raises cost and execution risk, making durable recovery and margin repair more difficult.

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 55.82, above the 50-day MA of 60.78, and below the 200-day MA of 70.77, indicating a bearish trend. The MACD of -2.11 indicates Negative momentum. The RSI at 33.73 is Neutral, neither overbought nor oversold. The STOCH value of 26.71 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	₹7.32B	20.52	―	3.24%	-9.47%	-54.96%
SAURASHCEM	55 Neutral	₹6.96B	-22.13	―	2.39%	2.37%	55.27%
KAKATCEM	53 Neutral	₹833.36M	-5.21	―	2.30%	-32.19%	-1097.08%
APCL	51 Neutral	₹3.47B	-4.95	―	―	-3.03%	27.30%
SHREDIGCEM	50 Neutral	₹9.63B	-48.17	―	1.66%	3.09%	-50.15%
ACL	40 Underperform	₹4.91B	-3.47	―	―	8.17%	-67.80%