Andhra Petrochem (500012)
CyclicalFairStock Score: 1/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹106.7 |
| Market Cap | ₹906.65 Cr |
| P/E Ratio | 0 |
| ROCE | -1.57% |
| ROE | -5.86% |
| Dividend Yield | 0% |
| Profit Growth | 28.91% |
| Debt/Equity | — |
| Sales Growth | -45.88% |
| 52-Week Range | ₹29.39 — ₹106.7 |
| Sector | Chemicals & Petrochemicals |
| Book Value | ₹64.06 |
Strengths
- Profit growth of +28.91% despite falling sales indicates some cost rationalization or operational efficiency improvement.
- Piotroski F-Score of 5/9 suggests the company is not in acute financial distress.
- Strong price momentum from ₹29.39 to ₹106.70 reflects market expectations of a cyclical rebound.
- Book value of ₹64.06 per share provides a tangible asset base to assess downside.
Concerns
- Negative ROE of -5.86% and ROCE of -1.57% indicate ongoing destruction of shareholder and capital value.
- Latest quarter net loss of ₹11 Cr on sales of ₹67 Cr shows continued weakness in profitability.
- Sales declined by 45.88%, signalling a severe demand contraction for its commodity chemicals.
- Trading at 1.67 times book with zero earnings (P/E 0.00) and no dividend yield – no margin of safety.
AI Analysis
Looking at Andhra Petrochem, I am reminded of Graham's admonition that price is what you pay, value is what you get. The market currently pays ₹106.70 a share, valuing the company at ₹907 crore. Yet the business earns a return on equity of -5.86% and a return on capital of -1.57%. In the latest quarter, it lost ₹11 crore on sales of ₹67 crore. Sales have collapsed by 45.88%, and the so-called profit growth of 28.91% offers little comfort when the base is a loss. The book value per share is ₹64.06, so the stock trades at 1.67 times book – a premium for a company that is destroying shareholder capital. There is no dividend yield, and the FairStock score is a risky 3/100. The Piotroski F-score of 5/9 is mediocre, suggesting only average financial health. The 52-week range of ₹29.39 to ₹106.70 is striking: the stock has nearly quadrupled while the underlying business has weakened. This is a classic cyclical commodity chemical company in the trough of a downturn. I see no durable moat, no pricing power, and no margin of safety at this price. As Graham would say, it is better to be approximately right than precisely wrong; here, paying a rich valuation for a loss-making operation seems precisely wrong. I would wait for a sustained recovery in sales and, more importantly, a return to positive and consistent earnings before considering this an attractive investment.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer