1. At a Glance
Once a 1936-era cement kingpin, Andhra Cements is now operating on thin margins and a mountain of past mistakes. Q1 FY26 loss? ₹29.6 Cr. And that’s after finally restarting production in 2023! Plants are still struggling, debt is bloated, and ROE is in the Mariana Trench.
2. Introduction with Hook
If cement stocks were school kids, Andhra Cements would be the one repeating the same grade since 2019 — with occasional hope after tuition (a.k.a. the resolution plan).
- Q1 FY26: ₹100 Cr revenue
- Net Loss: ₹29.6 Cr
- ROE: -68.4%
- Only one of two plants running — and that too, part-time
This is the tale of a fallen giant trying to turn around while riding a cement truck with a flat tyre.
3. Business Model (WTF Do They Even Do?)
They manufacture cement. That’s it.
Their plants:
- Sri Durga Cement Works (Guntur) – operational again post-resolution in April 2023
- Visaka Cement Works (Nalgonda) – shut, caught in city limits + logistic nightmares
Current production is mostly grinding operations, not full clinker-to-bag manufacturing. Not exactly a great start after a 3-year shutdown.
4. Financials Overview
Q1 FY26
- Revenue: ₹100 Cr
- Net Loss: ₹29.6 Cr
- OPM: 7%
- EPS: ₹-3.21
FY25 (Full Year)
- Revenue: ₹274 Cr
- Net Loss: ₹158 Cr
- EPS: ₹-17.14
- ROCE: -10.5%
- ROE: -68.4%
TL;DR:
The losses are drying slower than wet concrete in monsoon.
5. Valuation
Market Cap: ₹658 Cr
Book Value: ₹15.7
CMP / BV: 4.5x
P/E: NA (you’re joking, right?)
Fair Value Estimate:
- Based on asset replacement + hopeful revival: ₹35–₹55
- Current price of ₹71? Pricing in a miracle, not a margin.
6. What’s Cooking – News, Triggers, Drama
- Q1 FY26: ₹29.6 Cr loss
- Operations resumed in April 2023, but still ramping
- VCW Plant still non-operational — no clarity on revival
- Interest costs climbing again: ₹21 Cr in Q1 alone
- Promoter holding at 90%, but 26.4% of that is pledged
And yes — they had a ₹972 Cr “other income” in FY23. One-time gain from resolution plan. Don’t count on that again.
7. Balance Sheet
| Metric | FY25 |
|---|---|
| Equity Capital | ₹92 Cr |
| Reserves | ₹52 Cr |
| Borrowings | ₹757 Cr |
| Fixed Assets | ₹759 Cr |
| CWIP | ₹106 Cr |
| Total Liabilities | ₹1,144 Cr |
Summary:
This isn’t a clean slate. It’s a messy, chalk-dusted board that’s being rewritten painfully. Debt is still sky-high, and equity is barely holding ground.
8. Cash Flow – Sab Number Game Hai
| FY | CFO | CFI | CFF | Net Flow |
|---|---|---|---|---|
| FY25 | ₹60 Cr | ₹-81 Cr | ₹11 Cr | ₹-11 Cr |
| FY24 | ₹-27 Cr | ₹-96 Cr | ₹90 Cr | ₹-33 Cr |
| FY23 | ₹-1 Cr | ₹-35 Cr | ₹80 Cr | ₹44 Cr |
Insights:
- Operating cash flow turned positive in FY25
- Capex continues, despite uncertain cash generation
- Financing largely through equity infusions & term loans
9. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROCE | -10.5% |
| ROE | -68.4% |
| OPM | -6% |
| Debtor Days | 40 |
| Inventory Days | 1,019 |
| Payables Days | 2,389 |
| CCC | -1,330 Days |
Verdict:
Inventory Days = 3 years. If there were a Guinness record for stagnant clinker, they’d be on page 1.
10. P&L Breakdown – Show Me the Money
| FY | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹0 Cr | ₹-25 Cr | ₹950 Cr (One-time gain) |
| FY24 | ₹268 Cr | ₹-3 Cr | ₹-66 Cr |
| FY25 | ₹274 Cr | ₹-29 Cr | ₹-158 Cr |
So much red, they should rename themselves Andhra Paints.
11. Peer Comparison
| Company | Revenue | PAT | ROE | OPM | P/B | Mcap |
|---|---|---|---|---|---|---|
| UltraTech | ₹77,752 Cr | ₹6,911 Cr | 9.3% | 17.9% | 5.24 | ₹3.7 L Cr |
| Ambuja | ₹35,045 Cr | ₹4,143 Cr | 8.7% | 17.0% | 2.83 | ₹1.51 L Cr |
| JK Cement | ₹12,424 Cr | ₹917 Cr | 13.9% | 17.9% | 8.14 | ₹49,617 Cr |
| Andhra Cements | ₹310 Cr | ₹-158 Cr | -68.4% | -6% | 4.54 | ₹658 Cr |
Conclusion: You’re paying premium valuation for a company that hasn’t made profit in a decade.
12. Miscellaneous – Shareholding, Promoters
| Shareholder | % (Jun 2025) |
|---|---|
| Promoters | 90% |
| DIIs | 0.34% |
| Public | 9.66% |
| Pledged Holding | 26.4% of Promoters |
- Promoter holding maxed out — no room for creep
- Public float low — prone to manipulation
- Zero dividend
- Massive restructuring still underway
13. EduInvesting Verdict™
Andhra Cements is a textbook case of a “resolution stock” that never resolved.
Yes, they resumed operations. Yes, they’re posting revenues again. But losses, debt, and operational inefficiencies continue to haunt every cement bag sold.
If you’re betting on a turnaround — you’re not early. You’re… in purgatory.
Approach with caution unless you enjoy high-risk special situations and own a cement-grade patience level.
Metadata
– Written by EduInvesting Team | 21 July 2025
– Tags: Andhra Cements, Q1 FY26, Resolution Stock, Cement Sector, Turnaround, Microcap
