Andhra Petrochem (500012)

FairStock Score: 1/100 — RISKY

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

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.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer