🧱 Andhra Cements: This Stock Shut Down, Rebooted, and Still Can’t Find Ctrl+Z
Date of Publishing -
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At a Glance
After 3 years of being literally offline, Andhra Cements restarted operations in April 2023. New promoter? Yes. Production resumed? Partially. Profits? LOL. This stock is a cement zombie with a ₹600 Cr market cap and no earnings. But hey—everyone loves a comeback story. Or at least, a speculative bet.
1. 🥁 The Hook: From Cement to Sentiment
Remember when your school canteen shut down for renovations and reopened with the same soggy samosas?
That’s Andhra Cements.
They shut down both plants in Feb 2020
No production for 3 years
In April 2023, re-commissioned the Sri Durga Cement Works in Guntur
Meanwhile, the other unit (Visaka Cement Works) is still in limbo due to city zone restrictions
Yet, the stock touched ₹104 in 2023, up from ₹25 lows—a 4-bagger for people who bought dead hopes and sold dreams.
2. 🏭 WTF Do They Even Do?
Andhra Cements is in the business of cement manufacturing. At least on paper.
Here’s the two-plant setup:
Sri Durga Cement Works (SDCW) – Resumed production
Visaka Cement Works (VCW) – Still shut
But production ≠ profits.
This isn’t UltraTech with pan-India presence or Ambuja with mega margins. Andhra Cement is a single-digit market share regional operator, recently revived through Insolvency resolution under the IBC.
Spoiler: The new owner is Sagar Cements Ltd, a seasoned south India player.
3. 📉 Financials: LOL Worthy or Just Sad?
Snapshot (FY25):
Metric
Value
Sales
₹274 Cr
Net Profit
–₹152 Cr
OPM
–11%
ROCE
–11%
ROE
–68%
EPS
–₹16.50
In FY24, company reported some revenue (₹268 Cr) after 3 years of ZERO.
