Andhra Sugars Limited (ANDHRSUGAR) AI Stock Analysis

• Market Cap: ₹9.46B
• Dividend Yield: 1.06%
• Average Volume (3M): 14.73K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 1.34
• Revenue Growth: 16.68%
• EPS Growth: 15.13%
• Country: IN
• Employees: 1,994
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Chemicals
• EPS (TTM): 2.41
• Shares Outstanding: 135,535,390
• 10 Day Avg. Volume: 19,631
• 30 Day Avg. Volume: 14,733
• PEG Ratio: -0.57
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.47
• P/FCF Ratio: 29.88
• 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: 68 Neutral
• Price Target: ₹76.00 ▲(0.16% Upside)

The overall stock score of 68 reflects solid financial stability and positive technical indicators, suggesting a stable investment with potential for growth. However, the high P/E ratio and low dividend yield indicate valuation concerns, which could limit upside potential. Improving profitability metrics would enhance the stock's attractiveness.

Positive Factors

Balance Sheet Strength

Extremely low leverage and a high equity ratio provide durable financial flexibility. This capital structure reduces interest burden and recession vulnerability, enabling the company to fund maintenance capex, withstand cyclical sugar downturns, and pursue opportunistic investments without refinancing risk.

Integrated Business Model and Diversification

Vertical integration and a chemicals segment diversify revenue and raw‑material use, reducing pure commodity exposure. Long‑term, adjacent chemical products and by‑product monetization (molasses, bagasse) can stabilize margins and improve plant utilization across seasonality cycles.

High Gross Margin / Production Efficiency

A high gross margin indicates efficient processing and favorable production economics, giving the company structural room to absorb input cost swings. If operating expenses are managed, this efficiency supports durable margin recovery potential and funds reinvestment into plants or chemicals capacity.

Negative Factors

Weak Net Profitability

Very low net margin shows limited ability to translate gross profits into retained earnings after operating, financing, and tax costs. Persistently thin net returns constrain retained capital for growth, depress long‑term ROE, and make dividend or capex plans vulnerable to cyclical shocks.

Declining Free Cash Flow

A >50% drop in FCF materially reduces financial flexibility to fund capex, pay dividends, or build reserves. Over months, sustained FCF compression can force deferment of maintenance or expansion projects, increase reliance on working capital, and elevate vulnerability during low sugar realisations.

Exposure to Commodity and Regulatory Cyclicality

Dependence on sugarcane supply, commodity prices, and regulatory policy creates durable earnings volatility. Policy changes (minimum support prices, quotas) or prolonged crop shortages can shift margins and working capital needs for multiple seasons, constraining predictable long‑term cash generation.

Andhra Sugars Limited Business Overview & Revenue Model

Company Description

The Andhra Sugars Limited, together with its subsidiaries, manufactures and sells sugar, and organic and inorganic chemicals in India. The company operates through Sugars, Chlor Alkali, Power Generation, Industrial Chemicals, and Others segments. It offers chemicals and fertilizers, including caustic potash, caustic soda, ethanol, hydrochloric acid, hydrogen gas, liquid chlorine, poly aluminum chloride, potassium carbonate, industrial alcohol, sodium hypochlorite, sulphuric acid, and super phosphate. The company also provides aspirin products, including salicylic acids, sodium salicylate, and aspirin starch granules, as well as aspirin IP, USP, and BP products. In addition, it offers soaps, fatty acids, acetic acids, liquid propellants, bulk drugs, edible oils, transportation receipts, etc.; and liquid hydrogen, UH 25 and MMH, and HTPB products. Further, the company engages in power generation through wind and solar resources. The company also exports its products. The Andhra Sugars Limited was incorporated in 1947 and is based in Tanuku, India.

How the Company Makes Money

Andhra Sugars Limited generates revenue primarily through the sale of sugar, which constitutes a significant portion of its income. The company also earns from by-products such as molasses, which is used in the production of alcohol and other chemicals. Distillery operations contribute additional revenue through the manufacturing of ethanol and other alcoholic beverages. Moreover, strategic partnerships with agricultural producers and distributors enhance its supply chain and market reach. The company's diversified product offerings and engagement in multiple sectors allow it to mitigate risks and capitalize on various market opportunities, thus contributing to its overall earnings.

Andhra Sugars Limited Financial Statement Overview

Summary

Andhra Sugars Limited exhibits solid financial health with strong equity and low leverage. Although revenue growth is present, profitability has been pressured by rising costs. Cash flow management remains effective, but reductions in free cash flow highlight potential liquidity concerns. Overall, the company is in a stable position but needs to improve profitability metrics.

Income Statement

The income statement shows moderate performance with a slight revenue growth of 6.81% from the previous year. However, there is a significant drop in net income, leading to a weaker net profit margin of 1.28%. The gross profit margin is strong at 44.65%, indicating efficient production processes, but the decline in EBIT and EBITDA margins suggests rising operational costs or reduced pricing power.

Balance Sheet

The balance sheet is robust with a healthy equity ratio of 75.56%, indicating financial stability and low leverage. The debt-to-equity ratio is very low at 0.0084, highlighting minimal reliance on debt financing. Return on equity is modest at 1.63%, suggesting room for improvement in generating returns for shareholders.

Cash Flow

Cash flow analysis indicates a stable cash conversion with an operating cash flow to net income ratio of 4.94, implying efficient cash generation relative to earnings. Free cash flow declined by 53.82%, reflecting increased capital expenditures or reduced cash from operations. The free cash flow to net income ratio is 1.24, indicating positive cash flow generation after investments.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	21.39B	20.20B	18.91B	23.68B	19.54B	15.05B
Gross Profit	9.49B	9.02B	4.59B	10.71B	8.90B	7.03B
EBITDA	1.37B	1.20B	1.46B	3.17B	3.00B	2.33B
Net Income	345.77M	258.82M	751.05M	1.86B	2.42B	1.35B
Balance Sheet
Total Assets	0.00	21.08B	20.75B	20.35B	20.39B	18.79B
Cash, Cash Equivalents and Short-Term Investments	1.96B	1.96B	1.74B	1.86B	1.59B	1.91B
Total Debt	0.00	133.42M	309.66M	236.06M	550.43M	1.59B
Total Liabilities	-16.88B	4.20B	3.95B	3.98B	4.27B	4.91B
Stockholders Equity	16.88B	15.92B	15.83B	15.41B	15.19B	12.98B
Cash Flow
Free Cash Flow	0.00	320.86M	69.45M	689.83M	833.32M	1.62B
Operating Cash Flow	0.00	1.28B	1.42B	2.86B	1.76B	2.53B
Investing Cash Flow	0.00	-934.39M	-1.02B	-2.04B	-271.54M	-1.41B
Financing Cash Flow	0.00	-342.94M	-227.12M	-914.19M	-1.48B	-1.32B

Andhra Sugars Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 75.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ANDHRSUGAR, the sentiment is Negative. The current price of 75.88 is above the 20-day moving average (MA) of 70.34, above the 50-day MA of 73.77, and below the 200-day MA of 76.35, indicating a bearish trend. The MACD of -1.40 indicates Negative momentum. The RSI at 44.09 is Neutral, neither overbought nor oversold. The STOCH value of 81.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ANDHRSUGAR.

Andhra Sugars Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ANDHRSUGAR	68 Neutral	₹9.46B	15.05	―	1.06%	16.68%	15.13%
DALMIASUG	68 Neutral	₹22.40B	6.84	―	2.00%	17.71%	18.17%
RANASUG	66 Neutral	₹1.67B	4.51	―	―	8.83%	160.77%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
BAJAJHIND	49 Neutral	₹20.53B	-12.24	―	―	-11.72%	-439.12%
DHARSUGAR	46 Neutral	₹286.52M	―	―	―	―	―

Andhra Sugars Limited Corporate Events

Andhra Sugars Limited Reports Q3 Financials and Expands into Renewable Energy

Andhra Sugars Limited announced the approval of its unaudited financial results for the quarter ending September 30, 2025, showing an increase in turnover due to higher selling prices of caustic soda and sulfuric acid. The company also approved the reconstitution of its Audit Committee and the establishment of a 10 TPD Compressed Bio Gas plant in Andhra Pradesh, indicating a strategic expansion into renewable energy.