Check Before You Invest : Andhra Petrochemicals Ltd

Q: Which industry/sub-sector does Andhra Petrochemicals Ltd belong to?

Andhra Petrochemicals Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.

Q: Is Andhra Petrochemicals Ltd a good quality company?

Andhra Petrochemicals Ltd is a average quality company, based on a somewhat consistent multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Andhra Petrochemicals Ltd undervalued or overvalued?

Andhra Petrochemicals Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: -, Historic Median: 7.30. Price to Book, Current: 0.68, Historic Median: 1.34. Price to Sales, Current: 0.66, Historic Median: 0.92. EV to EBITDA, Current: -8.33, Historic Median: 3.43

Q: Is Andhra Petrochemicals Ltd a good buy now?

Andhra Petrochemicals Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Andhra Petrochemicals Ltd?

Andhra Petrochemicals Ltd revenue growth is -36.4% for FY-2025, which is below its 5-year CAGR of 1.94%, indicating slower growth.

Q: Gross Profit margin of Andhra Petrochemicals Ltd?

Andhra Petrochemicals Ltd Gross profit margin which is the profit after deduction of direct costs, is -0.8% for FY-2025, which is below its 5-year median of 12.7%, indicating decreasing margins.

Q: Operating Profit Margin of Andhra Petrochemicals Ltd?

Andhra Petrochemicals Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -4.57% for FY-2025, which is below its 5-year median of 10.67% indicating decreasing margins.

Q: Net Profit Margin of Andhra Petrochemicals Ltd?

Andhra Petrochemicals Ltd Net Profit Margin is -3.61% for FY-2025, is below its 5-year median of 8.04%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: -0.8, Historic Median: 12.7. Operating Profit Margin (%), Current: -4.57, Historic Median: 10.67. Net Profit Margin (%), Current: -3.61, Historic Median: 8.04

Q: Return on Asset of Andhra Petrochemicals Ltd?

Andhra Petrochemicals Ltd Return on Asset is -2.69%, which is below its 5-year historical median of 9.51%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Andhra Petrochemicals Ltd?

Andhra Petrochemicals Ltd Return on capital employed is -2.42% for FY-2025, which is below its 5-year historical median of 17.69%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : Andhra Petrochemicals Ltd

Snapshot

Q.1 Which industry/sub-sector does Andhra Petrochemicals Ltd belong to?

Andhra Petrochemicals Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.

Q.2 Is Andhra Petrochemicals Ltd a good quality company?

Andhra Petrochemicals Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Andhra Petrochemicals Ltd undervalued or overvalued?

Andhra Petrochemicals Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	-	7.30
Price to Book	0.68	1.34
Price to Sales	0.66	0.92
EV to EBITDA	-8.33	3.43

Q.4 Is Andhra Petrochemicals Ltd a good buy now?

Andhra Petrochemicals Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Andhra Petrochemicals Ltd?

Andhra Petrochemicals Ltd revenue growth is -36.4% for FY-2025, which is below its 5-year CAGR of 1.94%, indicating slower growth.

Q.2 Gross Profit margin of Andhra Petrochemicals Ltd?

Andhra Petrochemicals Ltd Gross profit margin which is the profit after deduction of direct costs, is -0.8% for FY-2025, which is below its 5-year median of 12.7%, indicating decreasing margins.

Q.3 Operating Profit Margin of Andhra Petrochemicals Ltd?

Andhra Petrochemicals Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -4.57% for FY-2025, which is below its 5-year median of 10.67% indicating decreasing margins.

Q.4 Net Profit Margin of Andhra Petrochemicals Ltd?

Andhra Petrochemicals Ltd Net Profit Margin is -3.61% for FY-2025, is below its 5-year median of 8.04%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	-0.8	12.7
Operating Profit Margin (%)	-4.57	10.67
Net Profit Margin (%)	-3.61	8.04

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Andhra Petrochemicals Ltd?

Andhra Petrochemicals Ltd Return on Asset is -2.69%, which is below its 5-year historical median of 9.51%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Andhra Petrochemicals Ltd?

Andhra Petrochemicals Ltd Return on capital employed is -2.42% for FY-2025, which is below its 5-year historical median of 17.69%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Andhra Petrochemicals Ltd?

Andhra Petrochemicals Ltd Return on equity is -3.37% for FY-2025, which is below its 5-year historical median of 11.95%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Andhra Petrochemicals Ltd?

Andhra Petrochemicals Ltd Cash conversion cycle is 29 days, above its 5-year historical median of 22 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.75	1.2
ROE (%)	-3.37	11.95
ROCE (%)	-2.42	17.69
Cash Conversion Cycle	29 days	22 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Andhra Petrochemicals Ltd?

Andhra Petrochemicals Ltd Debt-to-Equity ratio is 0.01, which is lower the industry average of 0.13, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Andhra Petrochemicals Ltd?

Andhra Petrochemicals Ltd Debt to cash flow from operations is -0.07, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Andhra Petrochemicals Ltd?

Q.1 Promoter shareholding and pledge status of Andhra Petrochemicals Ltd?

Promoters hold 45.04% of the Andhra Petrochemicals Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Andhra Petrochemicals Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Andhra Petrochemicals Ltd vs industry peers?

Andhra Petrochemicals Ltd revenue CAGR is 1.94%, compared to the industry median CAGR of 7.53%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-36.4	7.5
Gross Profit Growth (%)	-104	12.1
Operating Profit Growth (%)	-127.4	11.7
Net Profit Growth (%)	-128.6	9.7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.75	0.93
ROE (%)	-3.37	10.17
ROCE (%)	-2.42	12.96
Cash Conversion Cycle (days)	28.83	62

Valuation & price assessment

Q.1 Stock return of Andhra Petrochemicals Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 10.7% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	10.7%	-11.8%	-14.3%	-25.1%

Q.2 Valuation ratios of Andhra Petrochemicals Ltd vs historical?

The current P/E ratio of 0 is lower than its historical median of 7.30, indicating that the stock is trading below its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	-	7.30	28.17
Price to Book	0.68	1.34	2.22
Price to Sales	0.66	0.92	1.93
EV to EBITDA	-8.33	3.43	14.20

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Check Before You Invest : Andhra Petrochemicals Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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