Andhra Cements Limited (ACL) AI Stock Analysis

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Andhra Cements Limited

(NSE:ACL)

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Rating:30Underperform

Price Target:INR 35.00▼(-13.15% Downside)

Action:reiterated

Date:11/06/26

The overall score of 30 reflects a company in significant financial distress. The primary detractor is the extremely weak financial position, characterized by excessive leverage and negative cash flows, which poses an existential risk. This is compounded by a lack of profitability, as shown by the negative P/E ratio, and a bearish long-term technical trend. While the income statement shows some top-line growth, it is insufficient to offset the severe balance sheet and cash flow concerns.

Positive Factors

Revenue ReboundFY2026 revenue rebounded approximately 49% year over year, showing the company can restore sales momentum after weaker periods. If sustained, higher volumes or pricing can improve operating leverage and provide a broader base from which to repair margins, although profitability has not yet followed.

Negative Factors

Persistent LossesPersistent negative EBIT and net income show that recent sales growth has not yet translated into sustainable profitability. Multiple loss-making years reduce confidence in repeatable earnings power and may limit the company’s ability to fund operations and growth internally.

Andhra Cements Limited (ACL) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 3.73B
Dividend Yield: ―
Average Volume (3M): 2,403
Price to Earnings (P/E): -6.2
Beta (1Y): 1.29
Revenue Growth: 72.06%
EPS Growth: 63.74%
Country: India
Employees: 180
Sector: General
Sector Strength: 55
Industry: Construction Materials

Andhra Cements Limited Business Overview & Revenue Model

Company Description

Andhra Cements Ltd. is primarily involved in the production, distribution, and sale of cement and complementary products. The firm was established on December 9, 1936, and its corporate headquarters are situated in Hyderabad, India.

How the Company Makes Money

ACL primarily makes money by manufacturing cement and selling it to the construction market through trade channels (dealers/retail), and potentially through bulk sales to institutional and infrastructure customers. Revenue is generally generated from...

Andhra Cements Limited Financial Statement Overview

Summary

The financial performance is severely constrained by a highly leveraged balance sheet (Score 12) and negative cash flows (Score 18), which overshadow the modest operational improvements seen in the income statement (Score 28). The company's debt-to-equity ratio exceeding 14x and negative free cash flow of INR -3.25 billion present significant solvency and liquidity risks.

Income Statement

28Negative

Balance Sheet

12Very Negative

Cash Flow

18Very Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2021
Income Statement
Total Revenue	4.85B	4.42B	2.74B	2.66B	0	1.03M
Gross Profit	990.20M	884.50M	2.51B	38.80M	-467.92M	-4.89M
EBITDA	220.10M	160.60M	-280.20M	200.60M	9.46B	-277.88M
Net Income	-734.70M	-671.60M	-1.52B	-656.10M	9.50B	-2.05B
Balance Sheet
Total Assets	0	14.20B	11.44B	10.80B	9.09B	9.39B
Cash, Cash Equivalents and Short-Term Investments	443.40M	73.20M	247.20M	119.40M	530.30M	53.00K
Total Debt	0	11.27B	7.57B	6.75B	5.25B	9.63B
Total Liabilities	-807.40M	13.39B	10.00B	7.83B	5.54B	16.19B
Stockholders Equity	807.40M	807.40M	1.45B	2.97B	3.55B	-6.80B
Cash Flow
Free Cash Flow	-1.22B	-3.25B	-250.40M	-1.41B	-283.40M	1.19B
Operating Cash Flow	19.90M	-986.50M	595.50M	-267.20M	-10.10M	1.19B
Investing Cash Flow	-1.35B	-2.50B	-805.90M	-959.50M	-351.30M	33.00M
Financing Cash Flow	1.33B	3.49B	105.20M	896.80M	798.30M	-1.22B

Andhra Cements Limited Technical Analysis

Technical Analysis SentimentPositive

Last Price40.30

Price Trends

50DMA40.16Positive

100DMA44.46Negative

200DMA49.62Negative

Market Momentum

MACD-0.32Negative

RSI60.67Neutral

STOCH71.55Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ACL, the sentiment is Positive. The current price of 40.30 is above the 20-day moving average (MA) of 37.64, above the 50-day MA of 40.16, and below the 200-day MA of 49.62, indicating a neutral trend. The MACD of -0.32 indicates Negative momentum. The RSI at 60.67 is Neutral, neither overbought nor oversold. The STOCH value of 71.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:ACL.

Andhra Cements Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:ACL against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:MANGLMCEM	62Neutral	INR 25.94B	24.58	―	0.16%	0.55%	90.45%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:DECCANCE	48Neutral	INR 6.79B	114.32	―	0.10%	39.38%	-70.89%
IN:APCL	42Neutral	INR 2.58B	-8.16	―	―	-10.65%	50.21%
IN:KAKATCEM	42Neutral	INR 754.53M	-4.14	―	3.05%	-22.00%	30.68%
IN:SAURASHCEM	38Underperform	INR 5.49B	81.17	―	―	7.86%	-51.97%
IN:ACL	30Underperform	INR 3.77B	-6.20	―	―	72.06%	63.74%

* General Sector Average

Performance Comparison

IN:ACL and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:ACL	Andhra Cements Limited	40.30	-38.70	-48.99%
IN:APCL	Anjani Portland Cement Limited	86.57	-38.33	-30.69%
IN:DECCANCE	Deccan Cements Ltd	484.15	-515.67	-51.58%
IN:KAKATCEM	Kakatiya Cement Sugar & Industries Ltd.	97.06	-39.28	-28.81%
IN:MANGLMCEM	Mangalam Cement Ltd	912.00	161.70	21.55%
IN:SAURASHCEM	Saurashtra Cement Limited	48.60	-48.90	-50.15%

Andhra Cements Limited Corporate Events

Andhra Cements reports half-year related party transactions with Sagar Cements group

Oct 30, 2026

Andhra Cements Limited, a subsidiary of Sagar Cements Limited, has disclosed its related party transactions for the half year ended 30 September 2026, detailing dealings with its holding company, promoter group entities, directors and key management...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 06, 2026

Andhra Cements Limited AI Stock Analysis