NSEI:ANDHRSUGAR

Stock Analysis Report

Executive Summary

The Andhra Sugars Limited, together with its subsidiaries, manufactures and sells sugar, and organic and inorganic chemicals in India.

Snowflake

Fundamentals

Flawless balance sheet with proven track record and pays a dividend.

Share Price & News

How has Andhra Sugars's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.8%

ANDHRSUGAR

2.4%

IN Chemicals

1.6%

IN Market


1 Year Return

-24.9%

ANDHRSUGAR

14.0%

IN Chemicals

0.8%

IN Market

Return vs Industry: ANDHRSUGAR underperformed the Indian Chemicals industry which returned 14% over the past year.

Return vs Market: ANDHRSUGAR underperformed the Indian Market which returned 0.8% over the past year.


Shareholder returns

ANDHRSUGARIndustryMarket
7 Day-1.8%2.4%1.6%
30 Day-13.8%5.4%1.5%
90 Day-9.9%7.9%-3.3%
1 Year-22.4%-24.9%15.3%14.0%2.7%0.8%
3 Year30.5%20.1%36.0%31.8%22.0%16.0%
5 Year128.7%96.7%128.1%115.2%42.3%29.3%

Price Volatility Vs. Market

How volatile is Andhra Sugars's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Andhra Sugars undervalued compared to its fair value and its price relative to the market?

3.79x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: ANDHRSUGAR (₹263.95) is trading above our estimate of fair value (₹103.54)

Significantly Undervalued: ANDHRSUGAR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ANDHRSUGAR is good value based on its PE Ratio (3.8x) compared to the Chemicals industry average (10.4x).

PE vs Market: ANDHRSUGAR is good value based on its PE Ratio (3.8x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate ANDHRSUGAR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ANDHRSUGAR is good value based on its PB Ratio (0.6x) compared to the IN Chemicals industry average (1.1x).


Next Steps

Future Growth

How is Andhra Sugars forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

6.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ANDHRSUGAR's forecast earnings growth (6.6% per year) is below the savings rate (7.6%).

Earnings vs Market: ANDHRSUGAR's earnings (6.6% per year) are forecast to grow slower than the Indian market (18.3% per year).

High Growth Earnings: ANDHRSUGAR's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if ANDHRSUGAR's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if ANDHRSUGAR's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if ANDHRSUGAR's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Andhra Sugars performed over the past 5 years?

40.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ANDHRSUGAR's earnings have grown significantly by 40.1% per year over the past 5 years.

Accelerating Growth: ANDHRSUGAR's earnings growth over the past year (40%) is below its 5-year average (40.1% per year).

Earnings vs Industry: ANDHRSUGAR earnings growth over the past year (40%) exceeded the Chemicals industry 9.9%.


Return on Equity

High ROE: ANDHRSUGAR's Return on Equity (15.8%) is considered low.


Return on Assets

ROA vs Industry: ANDHRSUGAR has a higher Return on Assets than the Chemicals industry average last year.


Return on Capital Employed

ROCE Improving: ANDHRSUGAR has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Andhra Sugars's financial position?


Financial Position Analysis

Short Term Liabilities: ANDHRSUGAR's short term assets (₹8.3B) exceeds its short term liabilities (₹2.7B)

Long Term Liabilities: ANDHRSUGAR's short term assets (8.3B) exceeds its long term liabilities (3.8B)


Debt to Equity History and Analysis

Debt Level: ANDHRSUGAR's debt to equity ratio (20%) is considered satisfactory

Reducing Debt: ANDHRSUGAR's debt to equity ratio has reduced from 41.5% to 20% over the past 5 years.

Debt Coverage: ANDHRSUGAR's debt is well covered by operating cash flow (49.2%).

Interest Coverage: ANDHRSUGAR's interest payments on its debt are well covered by EBIT (8.1x coverage).


Balance Sheet

Inventory Level: ANDHRSUGAR has a high level of physical assets or inventory.

Debt Coverage by Assets: ANDHRSUGAR's debt is covered by short term assets (assets are 3.421480x debt).


Next Steps

Dividend

What is Andhra Sugars's current dividend yield, its reliability and sustainability?

3.79%

Current Dividend Yield


Dividend Yield vs Market

company3.8%marketbottom25%0.6%markettop25%2.5%industryaverage0.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ANDHRSUGAR's dividend (3.79%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: ANDHRSUGAR's dividend (3.79%) is in the top 25% of dividend payers in the Indian market (2.49%)

Stable Dividend: ANDHRSUGAR's dividend payments have been volatile in the past 10 years.

Growing Dividend: ANDHRSUGAR's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (14.3%), ANDHRSUGAR's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Andhra Sugars's salary, the management and board of directors tenure and is there insider trading?

19.5yrs

Average board tenure


CEO

Pendyala Chowdary (71yo)

7.5yrs

Tenure

₹39,897,198

Compensation

Mr. Pendyala Narendranath Chowdary, B.Sc. has been Managing Director of The Andhra Petrochemicals Ltd since August 5, 2018. He has been a Managing Director at Andhra Sugars Limited since April 1, 2012. Mr. ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Pendyala's total compensation is reasonable compared to companies of similar size in the Indian market.

Compensation vs Earnings: Pendyala's compensation has been consistent with company performance over the past year.


Board Age and Tenure

19.5yrs

Average Tenure

70yo

Average Age

Experienced Board: ANDHRSUGAR's board of directors are seasoned and experienced ( 19.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Mullapudi Thimmaraja (68yo)

    Joint MD & Executive Director

    • Tenure: 41.8yrs
    • Compensation: ₹24.02m
  • Pendyala Chowdary (71yo)

    Chairman & MD

    • Tenure: 7.5yrs
    • Compensation: ₹39.90m
  • Pendyala Ramayya (64yo)

    Joint MD & Executive Director

    • Tenure: 36.2yrs
    • Compensation: ₹23.41m
  • P. S. R. V. K. Rao (49yo)

    Executive Director

    • Tenure: 20.4yrs
    • Compensation: ₹4.59m
  • Mullapudi Narendranath (70yo)

    Joint MD & Executive Director

    • Tenure: 21.8yrs
    • Compensation: ₹24.03m
  • M. Palachandra

    Company Secretary & Compliance Officer

    • Tenure: 0yrs
    • Compensation: ₹2.50m
  • P. Kumar

    CFO, GM of Finance & Deputy Secretary

    • Tenure: 0yrs
    • Compensation: ₹2.82m

Board Members

  • Pamidi Kotaiah (81yo)

    Non-Executive & Independent Director

    • Tenure: 18.5yrs
    • Compensation: ₹95.00k
  • Mullapudi Thimmaraja (68yo)

    Joint MD & Executive Director

    • Tenure: 41.8yrs
    • Compensation: ₹24.02m
  • Pendyala Chowdary (71yo)

    Chairman & MD

    • Tenure: 7.5yrs
    • Compensation: ₹39.90m
  • Vuppalapati Raju (74yo)

    Non-Executive & Independent Director

    • Tenure: 16yrs
    • Compensation: ₹265.00k
  • Pendyala Ramayya (64yo)

    Joint MD & Executive Director

    • Tenure: 36.2yrs
    • Compensation: ₹23.41m
  • A. Rao

    Non-Executive & Independent Director

    • Tenure: 27.9yrs
    • Compensation: ₹260.00k
  • A. Rao

    Non-Executive & Independent Director

    • Tenure: 18.5yrs
    • Compensation: ₹70.00k
  • P. S. R. V. K. Rao (49yo)

    Executive Director

    • Tenure: 20.4yrs
    • Compensation: ₹4.59m
  • Mullapudi Narendranath (70yo)

    Joint MD & Executive Director

    • Tenure: 21.8yrs
    • Compensation: ₹24.03m
  • P. Chowdary

    Non-Executive & Independent Director

    • Tenure: 9.5yrs
    • Compensation: ₹280.00k

Company Information

The Andhra Sugars Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Andhra Sugars Limited
  • Ticker: ANDHRSUGAR
  • Exchange: NSEI
  • Founded: 1947
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: ₹7.194b
  • Shares outstanding: 27.11m
  • Website: https://theandhrasugars.com

Location

  • The Andhra Sugars Limited
  • Venkatarayapuram
  • Tanuku
  • Andhra Pradesh
  • 534215
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ANDHRSUGARNSEI (National Stock Exchange of India)YesEquity SharesININRNov 1995
590062BSE (Mumbai Stock Exchange)YesEquity SharesININRNov 1995

Biography

The Andhra Sugars Limited, together with its subsidiaries, manufactures and sells sugar, and organic and inorganic chemicals in India. The company operates through Sugars, Caustic Soda, Power Generation, I ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 12:32
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.