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1. At a Glance – The Comeback Kid… Who Forgot to Come Back Properly

There are companies that go through bad phases… and then there’s Andhra Cements Ltd — a company that literally shut shop for 3 years, came back, and is still bleeding like it forgot why it reopened. Imagine closing your restaurant for 3 years, reopening with new interiors, and still burning cash every day. That’s Andhra Cements.

Let’s set the stage:

• Operations were completely shut from Feb 2020 to March 2023
• Restarted only after getting rescued by Sagar Cements Limited
• Debt? ₹931 Cr
• Profit? Negative ₹159 Cr
• ROE? -68%
• Interest coverage? Negative

And yet, the stock trades at ~6x book value.

This is like a patient in ICU wearing a Rolex.

Oh, and promoters have pledged ~26.4% stake. Because why not add masala to an already spicy story?

Now here’s the twist — the company is planning:

• Capacity expansion
• Fund raise
• And even a merger into Sagar Cements

So the real question is:

Is this a phoenix rising from ashes… or just smoke from another fire?

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2. Introduction – Bankruptcy, Revival, and a Bollywood Plot Twist

If Andhra Cements were a Bollywood movie, it would be:

“Bankruptcy Se Badla: The Return of Losses”

Let’s rewind.

This company:

• Was once a functional cement manufacturer
• Then went into financial distress
• Entered CIRP (bankruptcy process) in 2022
• Got acquired by Sagar Cements in 2023

Now normally, post-acquisition stories are marketed like:
“New management, new growth, new profits”

But here?
We got:

• Restarted operations
• Restarted losses
• Restarted debt cycle

Classic.

Even rating agencies are basically saying:

“We believe in the parent… but the child needs serious therapy.”

And the irony?

The company’s biggest strength is:

• Not itself
• But its parent (Sagar Cements)

So ask yourself:

Are you investing in Andhra Cements… or just indirectly betting on Sagar Cements’ patience?

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3. Business Model – WTF Do They Even Do?

Simple answer:
They make cement.

Complicated answer:

• Manufacture clinker + cement
• Sell under Sagar brand
• Use parent’s distribution network
• Try not to lose money (currently failing)

Key plant:

• Dachepalli unit (Guntur) – currently operational
• Visaka unit – practically useless due to city restrictions

Revenue mix:

• Cement + clinker = ~96% of revenue

So basically:

• This is a single-product, single-plant, single-hope company

Now here’s the real comedy:

They shut down for 3 years…
Came back…
And still have OPM of just 0.5%

That’s not a business model. That’s survival mode.

Question for you:

If your business margin is less than your Swiggy delivery fee… is it even a business?

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4. Financials Overview – Numbers That Need Therapy

(All figures in ₹ Crores)

Metric	Dec 2025	Dec 2024	Sep 2025	YoY	QoQ
Revenue	110	66	78	+66%	+41%
EBITDA	5	-8	-4	Positive swing	Positive
PAT	-44	-44	-42	Flat	Worse
EPS (₹)	-4.79	-4.74	-4.55	Flat	Worse

Annualised EPS = (-4.79 × 4) = -19.16

Observations:

• Revenue growing → good
• EBITDA improving → decent
• PAT? Still negative → reality check

So essentially:
They are selling more cement… but still losing money.

Like increasing sales on Zomato but still ending the month broke.

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5. Valuation Discussion – Fair Value or Fantasy Value?

Let’s attempt valuation (brace yourself).

1. P/E Method

EPS = negative → P/E meaningless

So market is basically pricing:
“Hope”

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2. EV/EBITDA

• EV = ₹1,351 Cr
• EBITDA ≈ minimal

EV/EBITDA = ~353x

That’s not valuation. That’s optimism on