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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Andhra Cements Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 10:29 pm

Market Cap 727 Cr.
Current Price 79.0
High / Low139/76.0
Stock P/E
Book Value 25.9
Dividend Yield0.00 %
ROCE6.33 %
ROE27.0 %
Face Value 10.0
PEG Ratio0.00

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Andhra Cements Ltd

Competitors of Andhra Cements Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Bheema Cements Ltd 77.1 Cr. 23.635.3/21.0 13.20.00 %11.8 %56.4 % 10.0
UltraTech Cement Ltd 3,16,116 Cr. 10,95512,138/8,54448.1 2,1260.64 %15.1 %12.2 % 10.0
The Ramco Cements Ltd 21,622 Cr. 9151,058/70078.4 3020.27 %8.17 %5.63 % 1.00
The India Cements Ltd 11,009 Cr. 355386/173 1700.00 %0.78 %4.81 % 10.0
Star Cement Ltd 6,986 Cr. 173256/16235.3 67.90.00 %16.5 %11.5 % 1.00
Industry Average31,942.64 Cr1,738.1834.28530.040.63%11.13%16.10%7.13

All Competitor Stocks of Andhra Cements Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales0000000000136598
Expenses676861144513245793
Operating Profit-6-7-6-8-6-11-4-4-5-13-1185
OPM %-28,650%-83%12%5%
Other Income00000-100-09720150
Interest332639383745414341-110141920
Depreciation12121212121212121212131316
Profit before tax-51-44-56-58-55-68-57-58-571,056-38-9-31
Tax %0%0%0%0%0%0%0%0%0%-6%34%89%31%
Net Profit-51-44-56-58-55-68-57-58-571,122-25-1-21
EPS in Rs-1.73-1.52-1.90-1.96-1.86-2.33-1.93-1.98-1.96121.73-2.68-0.11-2.30

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Jun 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales000278292349466321143000176
Expenses273215253258310411308151293125188
Operating Profit-27-32-152534395513-8-29-31-25-12
OPM %-135,100%9%12%11%12%4%-5%-29,240%-7%
Other Income5753-363245-3811-1972988
Interest968627410512710812213015816-57
Depreciation11225304045474848474753
Profit before tax21-34-22-99-67-104-72-181-177-205-236884979
Tax %53%39%-253%0%1%1%1%0%5%0%0%-7%
Net Profit10-21-78-99-67-103-71-180-168-205-2369501,075
EPS in Rs0.33-0.70-2.66-3.37-2.28-3.51-2.42-6.14-5.73-6.99-8.05103.03116.64
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-310.00%-271.43%-26.92%-53.73%31.07%-153.52%6.67%-22.02%-15.12%502.54%
Change in YoY Net Profit Growth (%)0.00%38.57%244.51%-26.81%84.80%-184.59%160.19%-28.69%6.90%517.66%

Andhra Cements Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 10 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:%
5 Years:-4%
3 Years:1289%
TTM:293%
Compounded Profit Growth
10 Years:-1%
5 Years:7%
3 Years:16%
TTM:-287%
Stock Price CAGR
10 Years:24%
5 Years:100%
3 Years:68%
1 Year:-17%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:-27%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:43 am

MonthMar 2013Mar 2014Jun 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital294294294294294294294294294294929292
Reserves39-46-151-255-358-428-608-774-974-1,210263205146
Borrowings604730864903927937960961963970525675698
Other Liabilities18126136431338642041052265681736110181
Total Liabilities1,1171,2391,3701,2531,2491,2221,0541,0039408719171,0821,118
Fixed Assets66648458187771,007973926878832738815794
CWIP79298126528630230111026036
Investments0000000000000
Other Assets25919425915017018580766039152267288
Total Assets1,1171,2391,3701,2531,2491,2221,0541,0039408719171,0821,118

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Jun 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-1076115143559322117119151-1-27
Cash from Investing Activity +-182-192-207-17-3421031-35-96
Cash from Financing Activity +21012162-34-55-119-45-118-122-1528090
Net Cash Flow-79-106-8-216-22-0-0044-33

Free Cash Flow

MonthJun 2015Mar 2012Mar 2013Mar 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-839.00-27.00-636.00-745.00-869.00-888.00-882.00-947.00-969.00-992.00-1,001.00-550.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Jun 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days61392821225127,99652
Inventory Days43920223321114140563,55114,368965
Days Payable1,3787911,2801,0641,0754,109771,6513,2081,172
Cash Conversion Cycle-878-550-1,019-832-912-3,653-680,104-155
Working Capital Days-316-277-276-238-584-1,703-2,226,75622
ROCE %-3%-1%1%0%2%-4%-10%-20%-45%-15%-6%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters68.79%68.79%68.79%68.78%68.73%68.73%68.73%95.00%95.00%95.00%90.00%90.00%
FIIs2.82%2.53%2.52%2.52%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
DIIs12.60%10.46%9.88%9.42%0.07%0.07%0.07%0.01%0.34%0.34%0.34%0.34%
Government0.00%0.00%0.00%0.00%9.33%9.30%8.99%0.00%0.00%0.00%0.00%0.00%
Public15.78%18.21%18.81%19.28%21.87%21.89%22.21%4.98%4.66%4.66%9.66%9.66%
No. of Shareholders79,45691,68197,32199,68198,98297,77697,14894,22290,11587,47590,71892,375

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)-7.1234.82-8.05-6.99-5.74
Diluted EPS (Rs.)-7.1234.82-8.05-6.99-5.74
Cash EPS (Rs.)-0.99108.10-6.46-5.37-4.10
Book Value[Excl.RevalReserv]/Share (Rs.)31.4238.54-31.59-23.55-16.55
Book Value[Incl.RevalReserv]/Share (Rs.)31.4238.54-31.59-23.55-16.55
Revenue From Operations / Share (Rs.)29.090.000.000.004.87
PBDIT / Share (Rs.)0.57-2.76-1.02-0.94-0.23
PBIT / Share (Rs.)-5.55-7.84-2.61-2.56-1.87
PBT / Share (Rs.)-11.6095.87-8.05-6.99-6.02
Net Profit / Share (Rs.)-7.12103.03-8.05-6.99-5.73
PBDIT Margin (%)1.960.000.00-27057.35-4.91
PBIT Margin (%)-19.070.000.00-73335.54-38.38
PBT Margin (%)-39.860.000.00-199645.18-123.56
Net Profit Margin (%)-24.470.000.00-199645.18-117.77
Return on Networth / Equity (%)-22.65267.310.000.000.00
Return on Capital Employeed (%)-5.41-8.198.6052.54-60.93
Return On Assets (%)-6.07104.48-27.38-21.83-16.79
Long Term Debt / Equity (X)2.201.48-0.02-0.77-1.17
Total Debt / Equity (X)2.331.48-1.05-1.05-1.56
Asset Turnover Ratio (%)0.260.000.000.000.13
Current Ratio (X)1.022.390.010.030.06
Quick Ratio (X)0.582.190.010.020.04
Inventory Turnover Ratio (X)1.320.000.000.000.99
Interest Coverage Ratio (X)0.07-1.63-0.18-0.21-0.05
Interest Coverage Ratio (Post Tax) (X)-0.13-0.40-0.48-0.58-0.38
Enterprise Value (Cr.)1367.52517.571401.97885.67801.79
EV / Net Operating Revenue (X)5.100.000.008623.865.61
EV / EBITDA (X)259.49-20.32-46.71-31.87-114.17
MarketCap / Net Operating Revenue (X)2.680.000.001543.360.33
Price / BV (X)2.480.12-0.46-0.22-0.09
Price / Net Operating Revenue (X)2.680.000.001800.000.33
EarningsYield-0.0920.81-0.54-1.29-3.54

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Andhra Cements Ltd as of November 21, 2024 is: 106.99

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 21, 2024, Andhra Cements Ltd is Undervalued by 35.43% compared to the current share price 79.00

Default values used*: Default value of 15 for Stock P/E is used

Intrinsic Value of Andhra Cements Ltd as of November 21, 2024 is: 280.28

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, Andhra Cements Ltd is Undervalued by 254.78% compared to the current share price 79.00

Default values used*: Default value of 15 for Stock P/E is used

Last 5 Year EPS CAGR: 161.96%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -139.33, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -334.25, which is a positive sign.
  3. The company has shown consistent growth in sales (155.77 cr) and profit (52.85 cr) over the years.
  1. The stock has a low average ROCE of -8.42%, which may not be favorable.
  2. The company has higher borrowings (824.38) compared to reserves (-319.31), which may suggest financial risk.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Andhra Cements Ltd:
    1. Net Profit Margin: -24.47%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: -5.41% (Industry Average ROCE: 11.13%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: -22.65% (Industry Average ROE: 16.1%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): -0.13
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.58
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 0 (Industry average Stock P/E: 34.28)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 2.33
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Andhra Cements Ltd. is a Public Limited Listed company incorporated on 01/11/1936 and has its registered office in the State of Andhra Pradesh, India. Company’s Corporate Identification Number(CIN) is L26942AP1936PLC002379 and registration number is 002379. Currently company belongs to the Industry of Cement. Company’s Total Operating Revenue is Rs. 0.00 Cr. and Equity Capital is Rs. 293.52 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
CementDurga Cement Works (DCW), Sri Durgapuram, Palnadu District Andhra Pradesh 522414investorcell@andhracements.com
http://www.andhracements.com
Management
NamePosition Held
Mr. K V Vishnu RajuChairman & Ind.Director
Dr. S Anand ReddyManaging Director
Mr. S Sreekanth ReddyNon Executive Director
Mrs. S RachanaNon Executive Director
Mrs. O RekhaIndependent Director
Mr. Ravichandran RajagopalIndependent Director
Mr. V H RamakrishnanIndependent Director

FAQ

What is the latest intrinsic value of Andhra Cements Ltd?

The latest intrinsic value of Andhra Cements Ltd as on 21 November 2024 is ₹106.99, which is 35.43% higher than the current market price of ₹79.00.

What is the Market Cap of Andhra Cements Ltd?

The Market Cap of Andhra Cements Ltd is 727 Cr..

What is the current Stock Price of Andhra Cements Ltd as on 21 November 2024?

The current stock price of Andhra Cements Ltd as on 21 November 2024 is ₹79.0.

What is the High / Low of Andhra Cements Ltd stocks in FY 2024?

In FY 2024, the High / Low of Andhra Cements Ltd stocks is 139/76.0.

What is the Stock P/E of Andhra Cements Ltd?

The Stock P/E of Andhra Cements Ltd is .

What is the Book Value of Andhra Cements Ltd?

The Book Value of Andhra Cements Ltd is 25.9.

What is the Dividend Yield of Andhra Cements Ltd?

The Dividend Yield of Andhra Cements Ltd is 0.00 %.

What is the ROCE of Andhra Cements Ltd?

The ROCE of Andhra Cements Ltd is 6.33 %.

What is the ROE of Andhra Cements Ltd?

The ROE of Andhra Cements Ltd is 27.0 %.

What is the Face Value of Andhra Cements Ltd?

The Face Value of Andhra Cements Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Andhra Cements Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE