Andhra Sugars Limited (ANDHRSUGAR) AI Stock Analysis

• Market Cap: ₹9.62B
• Dividend Yield: 1.06%
• Average Volume (3M): 14.73K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 1.20
• Revenue Growth: 16.68%
• EPS Growth: 15.13%
• Country: IN
• Employees: 1,994
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Chemicals
• EPS (TTM): 1.65
• 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: ₹77.00 ▲(1.48% Upside)
• Action: Reiterated Date: 11/07/25
• Date: Action: Reiterated 11/07/25

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

A very strong equity ratio and negligible debt position provide durable financial flexibility. Low leverage reduces refinancing and default risk, enabling the company to fund operations, pursue capital projects or absorb commodity shocks without relying on costly external borrowing over the next several quarters.

High gross margins

Sustained gross margins near 45% reflect efficient production and cost control in core sugar and chemicals operations. Strong upstream economics increase the company's ability to withstand input cost inflation and maintain operating profitability, supporting margin sustainability across business cycles.

Revenue diversification

Adjacency into industrial chemicals and monetization of by-products (molasses, bagasse) reduces reliance on volatile sugar realizations. Structural diversification supports steadier revenue streams and long-term resilience, helping stabilize cash flow and mitigate sugar-cycle-driven earnings swings.

Negative Factors

Weak net profitability

A very low net margin and falling net income indicate that cost pressures or pricing constraints materially compress the bottom line. Sustained weak profitability limits retained earnings, reduces reinvestment capacity and constrains the company's ability to generate meaningful shareholder returns over the medium term.

Declining free cash flow

A greater-than-50% drop in free cash flow reduces financial flexibility to fund capex, pay dividends, or invest in efficiency improvements. If the decline reflects structural higher capex or lower operating cash, the company faces tougher choices on growth funding and balance sheet resilience in coming quarters.

Low return on equity

ROE near 1.6% signals poor conversion of equity into profit despite a strong capital base. Persistently low ROE suggests inefficiencies in asset deployment or margin recovery, making it difficult to justify retained capital and risking shareholder value erosion unless operational performance meaningfully improves.

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 primarily earns revenue by selling sugar produced from sugarcane to institutional buyers and through wholesale/market channels; this is generally the core revenue stream. The company also generates revenue from its chemicals segment by manufacturing and selling industrial chemical products to industrial customers; these sales provide diversification beyond cyclical sugar realizations. Additional earnings can come from the sale of by-products of sugar processing (such as molasses and bagasse), which are commonly monetized either through direct sales or through use in integrated operations (e.g., as inputs/fuel), but the exact contribution and structure for Andhra Sugars is null. Reported revenue and profitability are influenced by sugarcane availability and pricing, sugar and chemical market prices, regulatory policies affecting the sugar industry, and operating efficiency across its integrated plants; any specific long-term partnerships, customer concentration details, or segment-level revenue splits for the company are null.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	22.09B	20.20B	18.91B	23.68B	19.54B	15.05B
Gross Profit	9.70B	9.02B	4.59B	10.71B	8.90B	7.03B
EBITDA	1.76B	1.20B	1.46B	3.17B	3.00B	2.33B
Net Income	628.33M	258.82M	751.05M	1.86B	2.42B	1.35B
Balance Sheet
Total Assets	21.35B	21.08B	20.75B	20.35B	20.39B	18.79B
Cash, Cash Equivalents and Short-Term Investments	2.75B	1.96B	1.74B	1.86B	1.59B	1.91B
Total Debt	74.00M	133.42M	309.66M	236.06M	550.43M	1.59B
Total Liabilities	4.01B	4.20B	3.95B	3.98B	4.27B	4.91B
Stockholders Equity	16.37B	15.92B	15.83B	15.41B	15.19B	12.98B
Cash Flow
Free Cash Flow	816.13M	320.86M	69.45M	689.83M	833.32M	1.62B
Operating Cash Flow	1.13B	1.28B	1.42B	2.86B	1.76B	2.53B
Investing Cash Flow	-1.17B	-934.39M	-1.02B	-2.04B	-271.54M	-1.41B
Financing Cash Flow	-182.79M	-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: Positive
• RSI: Neutral
• STOCH: Positive

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 72.13, above the 50-day MA of 71.83, and below the 200-day MA of 76.41, indicating a bearish trend. The MACD of -0.75 indicates Positive momentum. The RSI at 46.03 is Neutral, neither overbought nor oversold. The STOCH value of 16.92 is Positive, 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	₹9.62B	11.48	―	1.06%	16.68%	15.13%
DALMIASUG	68 Neutral	₹25.90B	8.71	―	2.00%	17.71%	18.17%
RANASUG	67 Neutral	₹1.79B	3.78	―	―	8.83%	160.77%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
BAJAJHIND	46 Neutral	₹20.67B	39.15	―	―	-11.72%	-439.12%
DHARSUGAR	46 Neutral	₹286.52M	-0.44	―	―	―	―
SIMBHALS	40 Underperform	₹309.59M	-2.42	―	―	―	―