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Andhra Cements
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Andhra Cement Limited (formerly Andhra Cement Company Limited ), incorporated in Dec.'36, was promoted and owned by the Sadu Jain Group. It manufactures and markets cement under the Durga Prasad trade name. The Company is engaged in the manufacturing and selling of Cement and Cement related products.
The Company's first unit was commissioned in Vijayawada in 1940. Later, it was extended in three stages in 1951, 1958 and 1970. By 1987, total capacity reached 2.4 lac tpa of cement. The company possesses mining leases over about 300 acres in Gammalapadu.
In 1988-89, overall production of clinker as well as cement increased. But, in 1989-90, there was a sharp decline in clinker and cement production due to the erratic, and sometimes total lack of supply of coal, scarcity of working capital, continuous power cuts, etc. In 1990-91, production increased significantly (72%), despite power cuts, the shortage of fuel and severe paucity of funds. The Vizag Cement Works commenced production in Nov.'79. The company obtained a letter of intent to produce 2.5 lac tpa of cement at the Durga Cement Works, Nadikude. Work on the new cement project at Durgapuram is in progress. The crusher was commissioned in Mar.'83 and the cement mill, in Jun.'83.
The company had an investment programme of Rs 63 cr, including modernisation of the Vijayawada and Vizag units, to increase the licensed capacity from 7.4 lac tpa to 12.4 lac tpa, financed through term loans from financial institutions and banks.
BIFR has sanctioned a scheme for rehabilitation in June 1994. The Scheme estimated at Rs.79.81 crore, envisaged change of management in favour of Duncan Agro Inds., now known as Duncan Industries Ltd, belonging to the G P Goenka Group(also known as Duncan Goenka Group). In the year 1997-98, the Duncan Goenka group of companies have brought Rs. 52.61 crs. under the BIFR scheme. A revised rehabilitation scheme has been prepared and submitted for consideration with the directions of Hon'ble BIFR.
The total production of Cement during the year is 6.58 lac MT when compared to previous year of 6.28 lac MT an increase of 5%.The company for its Vizag Plant achieved ISO 9002 certification in December 2000.
During the period 2011-12, the Company got into a Share Subscription and Share Purchase Agreement (SSSPA) on 15th November, 2011 with Jaypee Development Corporation Limited (JDCL), a wholly owned subsidiary of Jaypee Infra Ventures ( A Private Company with Unlimited Liability), the companies belonging to Jaypee Group. Accordingly, an Open Offer was made by JDCL to the existing shareholders to acquire upto 7,63,15,328 Equity Shares of the Company representing 26% of the expanded paid up Equity Capital of the Company, which was opened from 25th January, 2012 to 8th February, 2012. Thus, during 2011-12, JDCL acquired 14,75,00,000 Equity Shares of the Company by way of Preferential Issue, purchased of 2,17,22,336 Equity Shares from erstwhile Promoters and 63,06,856 Equity Shares through Open Offer. Consequently, as on 31st March, 2012 the shareholding of JDCL in the Company stood at 17,55,29,192 Equity Shares constituting 59.80% of the expanded capital base. With the acquisition of the above shares, JDCL acquired managing control over the Company and was classified as Promoter effective 10th February, 2012. Accordingly, Andhra Cements Limited became a subsidiary of Jaypee Development Corporation Limited and in turn, a subsidiary of Jaypee Infra Ventures thus becoming part of the Jaypee Group.
The 30MW Captive Power Plant (CPP) commissioned in Sep' 15. The Company's both the plants viz, Durga Cement Works (DCW) and Visaka Cement Works (VCW) were operational and produced Clinker and Cement in 2017-18. The Company sold its surplus and un-utilised land situated at Jayanthipuram Village, (AP) and as a result, Visakha Cement Works (VCW) was operated till July,2018.
The Hon'ble NCLT, Amaravati Bench, vide its Order dated 16' February, 2023 approved the Resolution Plan submitted by the Resolution Applicant, Sagar Cements Limited. The Resolution Applicant, Sagar Cements Limited upon successful implementation of the Resolution Plan took over the control of the Management and Ownership of the Company and by virtue of which,the Company became subsidiary of Sagar Cements Limited.
During year 2022-23, the Company recommenced Grinding Plant Operations from 12th April, 2023 at its Durga Cement Works.
Andhra Cements share price reflects investor sentiment toward the company and is impacted by various factors such as financial performance, market trends, and economic conditions. Share price is an indicator which shows the current value of the company's shares at which buyers or sellers can transact.
Market capitalization of Andhra Cements indicates the total value of its outstanding shares. Marketcap is calculated by multiplying share price and outstanding shares of the company. It is a helpful metric for assessing the company's size and market Valuation. It also helps investors understand how Andhra Cements is valued compared to its competitors.
Andhra Cements PE ratio helps investors understand what is the market value of each stock compared to Andhra Cements 's earnings. A PE ratio higher than the average industry PE could indicate an overvaluation of the stock, whereas a lower PE compared to the average industry PE could indicate an undervaluation.
The PEG ratio of Andhra Cements evaluates its PE ratio in relation to its growth rate. A PEG ratio of 1 indicates a fair value, a PEG ratio of less than 1 indicates undervaluation, and a PEG ratio of more than 1 indicates overvaluation.
Return on Equity (ROE) measures how effectively Andhra Cements generates profit from shareholders' equity. A higher ROE of more than 20% indicates better financial performance in terms of profitability.
Return on Capital Employed (ROCE) evaluates the profitability of Andhra Cements in relation to its capital employed. In simple terms, ROCE provides insight to investors as to how well the company is utilizing the capital deployed. A high ROCE of more than 20% shows that the business is making profitable use of its capital.
Total debt of Andhra Cements shows how much the company owes to either banks or individual creditors. In simple terms, this is the amount the company has to repay. Total debt can be a very useful metric to show the financial health of the company. Total debt more than equity is considered to be a bad sign.
The Debt-to-Equity (DE) ratio of Andhra Cements compares its total debt to shareholders' equity. A higher Debt to Equity ratio could indicate higher financial risk, while a lower ratio suggests that the company is managing its debt efficiently.
CAGR shows the consistent growth rate of Andhra Cements over a specific period, whether it is over a month, a year, or 10 years. It is a key metric to evaluate the company’s long-term growth potential. Main metrics for which CAGR is calculated are net sales, net profit, operating profit, and stock returns.
Technical analysis of Andhra Cements helps investors get an insight into when they can enter or exit the stock. Key components of Andhra Cements Technical Analysis include:
There are usually multiple support levels, but the main support levels for a stock are S1, S2, S3. Support levels indicate price points where stock might get support from buyers, helping the stock stop falling and rise.
There are usually multiple resistance levels, but the main resistance levels for a stock are R1, R2, R3. Resistance levels represent price points where Andhra Cements shares often struggle to rise above due to selling pressure.
Dividends refer to the portion of the company’s profits distributed to its shareholders. Dividends are typically paid out in cash and reflect Andhra Cements ’s financial health and profitability.
Bonus shares are usually given by companies to make the stock more affordable, increase liquidity, boost investor confidence, and more.
Stock split increases the number of its outstanding shares by dividing each existing share into multiple shares. When the company offers a stock split, the face value of the stock reduces in the same proportion as the split ratio.
The financials of Andhra Cements provide a complete view to investors about its net sales, net profit, operating profits, expenses, and overall financial health. Investors can analyze financial data to assess the company’s stability and also understand how the company has been growing financially.
The profit and loss statement of Andhra Cements highlights its net sales, net profit, total expenditure, and operating profits in the current financial year. This Profit and Loss statement is crucial for evaluating the profitability and financial stability of Andhra Cements .
The balance sheet presents a snapshot of Andhra Cements ’s assets, liabilities, and equity of shareholders, providing insights into the financials of the company.
Cashflow statements track the company's cash inflows and outflows over a period. It is an essential tool for understanding how well the company manages its liquidity and finances.
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