What Happened To Andhra Cement Share?

What Happened To Andhra Cement Share
Lenders led by Edelweiss Asset Reconstruction Company Ltd received bids from NCL Industries Ltd and Sagar Cements Ltd to acquire the assets of Andhra Cements. Both were rejected because they fell below lenders’ expectations. – September 29, 2021 / 01:14 PM IST Andhra Cement share price added almost 3 percent in the afternoon session on September 29 as the company’s consortium of creditors plans to start anew the debt resolution process at the distressed company. Jaypee Group-owned Andhra Cements’ consortium of creditors plans to start anew the debt resolution process at the distressed company after receiving poor response from bidders to their first attempt to sell the asset, three people with knowledge of the matter said.

  • The bidding process will also be tweaked to invite offers for loan facilities of the company instead of physical assets.
  • Lenders led by Edelweiss Asset Reconstruction Company received bids from NCL Industries and Sagar Cements to acquire the assets of Andhra Cements.
  • Both were rejected because they fell below lenders’ expectations, sources said.

The stock was trading at Rs 19.45, up Rs 0.50, or 2.64 percent. It has touched an intraday high of Rs 19.60 and an intraday low of Rs 18.10. Catch all the market action on our live blog In a fresh attempt, Andhra Cements lenders will invite bids for their loan facilities unlike the recent sale process wherein lenders invited bids for assets of the company, sources added.

Why is Andhra Cement suspended?

The National Company Law Tribunal has directed to initiate insolvency proceedings against Andhra Cement, a company owned by the debt-ridden Jaypee Group. The Hyderabad bench of the NCLT (National Company Law Tribunal) has also appointed Nirav K Pujara as the Interim Resolution Professional ( IRP ) of the company, and declared a moratorium in respect of the company as per the provision of the Insolvency & Bankruptcy Code ( IBC ).

“The company is now under CIRP (Corporate Insolvency Resolution Process) as per the provisions of the code. As per Section 17 of the code, the powers of the board of directors of the company stand suspended and as such the powers shall be vested with and exercised by the IRP,” Andhra Cement said in a regulatory filing.

The company has also shared the order passed by the insolvency tribunal on April 26, 2022, in this regard. Meanwhile, in a separate filing, Andhra Cement has invited its creditors to submit their claims by May 10, 2022, before the IRP. NCLT’s direction came after a petition filed by Pridhvi Asset Reconstruction and Securitisation Company Ltd, claiming a default.

  1. Andhra Cement had taken loans from several banks, including IDFC First Bank, HDFC and Karur Vysya Bank, and amounts were disbursed during the period from 2012 to 2016.
  2. Subsequently, Edelweiss Asset Reconstruction Company Limited acquired the loans and underlying security interest, including all rights, title and interest therein, held by the original lenders.

Later, the petitioner acquired loans to an extent of Rs 804.72 crore and underlying security interest, including all rights, title and interest held by Edelweiss Asset Reconstruction and Karur Vysya Bank. Andhra Cement failed to abide by its repayment obligations, following which Pridhvi Asset Reconstruction and Securitisation Company moved the NCLT.

What is the future of Andhra Cement share?

Quote is equal to 6.520 INR at 2022-12-03. Based on our forecasts, a long-term increase is expected, the ‘Andhra Cements Ltd’ stock price prognosis for 2027-11-12 is 22.176 INR. With a 5-year investment, the revenue is expected to be around +240.12%. Your current $100 investment may be up to $340.12 in 2027.

Can we invest on Andhra Cement?

How do I buy ANDHRA CEMENTS LTD. (ANDHRACEMT) from Angel One? – ANDHRA CEMENTS LTD. (ANDHRACEMT) share can be brought through the following modes:

  1. Direct investment : You can buy ANDHRA CEMENTS LTD. (ANDHRACEMT) shares by opening a Demat account with Angel One.
  2. Indirect investment : The indirect method involves investing through ETFs and Mutual Funds that offer exposure to ANDHRA CEMENTS LTD. (ANDHRACEMT) shares.

What is the target of Andhra Cement?

Andhra Cements ANDHRACEMT share price forecast & targets for long-term is an uptrend, and nearest possible share price targets are 11, 12, 14, 15, 16, 17, 18, 19, 20, or even 20.40 – The stock price is currently trading at 10.20 However, if the trend reverses from this point, then possible future share price targets could be 8, 7, 6, or even 1.45 These share price targets are working as long-term support & resistance levels as well.

Andhra Cements Weekly share price target downside target 1: 9.3 Andhra Cements Weekly share price target downside target 2: 7.9 Andhra Cements Weekly share price target upside target 1: 11.4 Andhra Cements Weekly share price target upside target 2: 12.1

If the price of Andhra Cements is trading below 10 then possibility of downside targets getting achieved is higher. If the price of Andhra Cements is trading above 10 then possibility of upside targets getting achieved is higher.

Andhra Cements Monthly share price target downside target 1: 11.57 Andhra Cements Monthly share price target downside target 2: 10.53 Andhra Cements Monthly share price target upside target 1: 14.67 Andhra Cements Monthly share price target upside target 2: 16.73

If the price of Andhra Cements is trading below 13.63 then possibility of downside targets getting achieved is higher. If the price of Andhra Cements is trading above 13.63 then possibility of upside targets getting achieved is higher.

Andhra Cements Daily share price target downside target 1: 9.87 Andhra Cements Daily share price target downside target 2: 9.53 Andhra Cements Daily share price target upside target 1: 10.87 Andhra Cements Daily share price target upside target 2: 11.53

If the price of Andhra Cements is trading below 10.53 then possibility of downside targets getting achieved is higher. If the price of Andhra Cements is trading above 10.53 then possibility of upside targets getting achieved is higher.

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Is Andhra Cement debt free?

Andhra Cements debt resolution process to start anew on poor response from bidders Jaypee Group-owned Andhra Cements Ltd’s consortium of creditors plans to start anew the debt resolution process at the distressed company after receiving poor response from bidders to their first attempt to sell the asset, three people with knowledge of the matter said.

The bidding process will also be tweaked to invite offers for loan facilities of the company instead of physical assets. Lenders led by Edelweiss Asset Reconstruction Company Ltd received bids from NCL Industries Ltd and Sagar Cements Ltd to acquire the assets of Andhra Cements. Both were rejected because they fell below lenders’ expectations, said two of the three people on condition of anonymity.

In all, lenders received 16 expressions of interest (EoI) for Andhra Cements within the end of June deadline for the sale of two cement plants, but only NCL Industries and Sagar Cements submitted offers within the deadline of 14 September, the two said.

Both offers were below Rs 600 crore and were accompanied by multiple conditions, the people said. Andhra Cements has fund-based exposure of Rs 1,200 crore including working capital loans and interest accrued on loans to lenders as of 31 March 2021, according to annual results published on the Bombay Stock Exchange on 26 June this year.

NCL Industries, Sagar Cements, Shree Cement, Deccan Cements Ltd, Chettinad Cement Corp. Ltd, Star Cement Ltd, PNC Infratech Ltd, Rashmi Group, Shree Laxmi Narsinha Sugar LLP, My Home Industries Pvt. Ltd and Fortuna Engineering Pvt. Ltd were among the entities that submitted EoIs, said one of the three persons.

  1. Piramal Enterprises Ltd and Bain Capital-backed India Resurgent Fund, Aditya Birla Stressed Fund, Eight Capital, Edelweiss Stressed Asset Fund and U V Asset Reconstruction Company were among the strategic investors to submit EoIs, the same person said.
  2. While NCL Industries Ltd’s bid was linked to enterprise value, Sagar Cements made a non-binding bid, the first person said.

Shree Cements sought additional time to submit a bid, but lenders rejected the request. In a fresh attempt, Andhra Cements lenders will invite bids for their loan facilities unlike the recent sale process wherein lenders invited bids for assets of the company, said the second person.

The loan facilities are secured by plant and machinery, pledge of promoters’ shares, and the personal guarantee of promoter Manoj Gaur, according to the company’s annual report. Lenders are likely to launch a fresh debt sale process next month either through an open auction or a Swiss auction, the second person said.

In the Swiss system, any bidder makes an unsolicited but binding bid. Once approved, the auctioneer seeks counter proposals from other bidders and chooses the best one on the table. Besides Edelweiss ARC, other consortium lenders include Union Bank of India, Karur Vysya Bank and State Bank of India.

  1. The lenders led by Edelweiss ARC has appointed Grant Thornton as advisor for the transaction, as by Moneycontrol.com in June this year.
  2. The company disclosed to the Bombay Stock Exchange on 27 May that the board approved the lenders’ proposal to sell the two cement plants located in Andhra Pradesh.
  3. Debt Stack Andhra Cements started missing payments to lenders sometime in 2017.

Edelweiss ARC has acquired nearly 80 percent of the total debt over the last four years. In March 2021, the ARC acquired from housing financier HDFC Ltd a Rs 367-crore principal secured loan, the first person said. A part of the agreed sale value was paid in cash while the remaining was paid in the form of security receipts, according to one of the persons quoted above.

  1. Edelweiss ARC acquired Andhra Cements’ loan from HDFC in a bilateral deal at 40 paise on the rupee, the same person said.
  2. Edelweiss ARC also acquired a Rs 365 crore principal secured loan from IDFC in 2017 as a part of a portfolio sale by the financial institution comprising 14 companies with outstanding loans of Rs 5,000 crore.

The ARC had acquired IDFC’s portfolio for 44 paise on the rupee, according to media reports. The deal with IDFC was based on a 15:85 structure wherein 15 percent of the transaction value was paid in cash and for the remaining 85% the ARC issued security receipts which would be redeemed based on the recoveries made by the ARC.

Which sector is doing well now in AP?

Andhra Pradesh ranks #1 in fish and shrimp production as well as in area and production of fruits and spices. Around 60% of the state’s population is employed in agriculture and related activities, which makes Food Processing one of the major thrust areas for the state.

Which cement company is debt free?

Synopsis Ambuja Cements and ACC are debt-free companies, while UltraTech Cement, Shree Cement and Dalmia Bharat have taken debts to fund capex. – An increase in spending on housing and infrastructure development is emboldening the Indian cement industry to go down a path it hasn’t in 10 years.

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Why Andhra Cement prices are rising?

Andhra Cement share price rises as creditors plan to restart debt resolution process – Lenders led by Edelweiss Asset Reconstruction Company Ltd received bids from NCL Industries Ltd and Sagar Cements Ltd to acquire the assets of Andhra Cements. Both were rejected because they fell below lenders’ expectations. Jun 18, 2021 02:53 PM IST

Is Andhra Petrochemicals a multibagger?

Wealth creators of D-Street! These 5 stocks turned into multibaggers in 2021; do you own any? As Peter Lynch rightly said, “You get recessions, you have stock market declines. If you don’t understand that’s going to happen, then you’re not ready, you won’t do well in the markets.” In its worst ever crash, the BSE Sensex plummetted 3,934.72 points or 13.15 per cent to 25,981.24 on March 23 after several Indian states announced lockdown following a spurt in the number of cornavirus cases.

We have seen an unprecedented upside in Indian equity markets since the slide of March 2020. Sensex has leapt from 54k to 56k in just one month. The target for Sensex is 60,000 by December 2021, according to YES Securities. The market rally was boosted by a recovery in macroeconomic numbers, consistent buying by retail investors, good earnings and an increased pace of vaccination.

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Recently, the Monthly Economic Review released by the Department of Economic Affairs stated that despite the impact of the second wave, India reasserted its V-shaped recovery. Even as the FY22 Q1 output was impacted by the severe second wave, it was large enough to post year-on-year growth of 20.1 per cent, recovering more than 90 per cent of the pre-pandemic Q1 output of FY20.

India is poised for an even faster recovery and stronger growth, both in the short and long term on the back of stronger macroeconomic fundamentals supported by structural reforms that enable enhanced efficiency and productivity. In addition, the government’s CAPEX push to crowd-in private investment and financial sector clean-up will further support growth,” stated the report.

Amid the ongoing market rally, a large number of small-caps, midcap and large-caps stocks have turned into multibaggers in 2021. GNA Axles, Andhra Petrochem, KPR Mill, HG Infra and Alkyl Amines have been among the best performers of Dalal Street. Let us take a look at some of the top performers of 2021 so far!

  • Alkyl Amines
  • GNA Axles
  • Andhra Petrochemicals Limited

The multibagger stock has surged from Rs 1,553 to Rs 4,136.85 mark so far in 2021 – yielding around 166% return in this period. The stock has jumped 3,201 per cent in the last five years and surged 23,647 per cent in the last ten years. According to a recent report by Motilal Oswal on the Indian speciality chemicals sector, the euphoria is due to a) consolidation of polluting Chemical companies in China, b) COVID-related supply chain disruptions, and c) supportive margins have led to multiples expansion for the Indian speciality chemical companies.

The brokerage house noted that the capacity expansion would facilitate the current high valuations – as even the company’s RoEs would be the best among peers at 32-33% in FY24E. It added that ongoing expansions would boost the aliphatic amines capacity by 30%. According to MarketsMojo, the company has a strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.65 times.

It has strong long-term fundamental strength with an average Return on Equity (ROE) of 27.49% and has declared positive results for the last 9 consecutive quarters. However, it noted that the valuation is very expensive right now. Along with generating a 227% return in the last 1 year, the stock has outperformed BSE 500 in each of the last 3 annual periods.

The company reported a net profit of Rs 78.54 crore for the quarter ended June 2021 compared to a profit of Rs 52.78 in the year-ago period. Revenue from operations grew 60 per cent to Rs 391.81 crore in the June-ended quarter against Rs 245.15 crore a year ago. Experts believe that amine makers are expected to do well because of the rapid scale-up in vaccine manufacturing.

Shares of GNA Axles have delivered a 190% return in 2021 so far. The stock has been gaining for the last 3 days and has risen 9.11% in the same period. According to MarketsMojo, the company has a strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.18 times.

It has high management efficiency with a high ROCE of 16.13% and has declared positive results for the last 3 consecutive quarters. The technical trend has improved from Mildly Bullish on June 2, 2021, and has generated 77.2% returns since then. Multiple factors for the stock are Bullish like MACD, Bollinger Band, KST and DOW.

The stock is trading at a discount compared to its average historical valuations and with a ROCE of 15, it has a Fair valuation with a 2.7 Enterprise value to Capital Employed. “We believe domestic tractor demand is resilient and good distribution of monsoon across country will further add strength to the rural economy and fuel the growth of Farm Equipment.

  1. North American class 8 Truck market is also expected to show double digit growth in next 18 months.
  2. Further rapid recovery in Indian MHCV Truck segment will be tailwind for GNA Axle,” said IDBI Capital.
  3. The brokerage firm noted that the government’s strong Infra push will create a sustainable demand for tippers and trucks for construction activity.

Shares of Andhra Petrochemicals Limited have delivered 395 per cent return to its shareholders in the last 12 months and have risen 194 per cent since the beginning of this year. The company reported a net profit of Rs 62.74 crore for the quarter ended June 2021 compared to a profit of Rs 1.93 in the year-ago period.

Revenue from operations grew 318 per cent to Rs 244.07 crore in the June-ended quarter against Rs 58.39 crore a year ago. According to MarketsMojo, the company has a low Debt to Equity ratio (avg) at 0.21 times and has high management efficiency with a high ROCE of 20.36%. The stock is technically in a Mildly Bullish range now and it is trading at a fair value compared to its average historical valuations.

With a ROE of 46.5, it has a Fair valuation with a 4.2 Price to Book Value.H.G. Infra Engineering This multibagger stock has delivered a 180% return since the beginning of this year and has surged 210% in the last 12 months. “We expect revenue/ Adj. PAT CAGR of 23.8%/ 22.7% over FY21-23E.

Though the stock has increased 95% since the Q4FY21 result on 14 May’21, it still looks reasonably attractive at 14.0x/ 11.7x FY22E/ FY23E EPS, hence we maintain BUY with SOTP of Rs 695 (12x FY23E EPS) and 1xFY23E P/B for HAM equity investments,” said Dolat Capital. Commenting on future outlook, H.G.

Infra said it is confident of over-achieving its revenue growth guidance of 25-30% for FY22E. It further added that the company will not compromise on margins as well. According to MarketsMojo, the company has a strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.63 times.

It has high management efficiency with a high ROCE of 26.22% and has declared positive results for the last 2 consecutive quarters. The technical trend has improved from Mildly Bullish on July 2, 2021, and has generated 46.93% returns since then. The stock is in the Bullish range and multiple factors for the stock are Bullish like MACD, Bollinger Band, KST and DOW.

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Also, the stock is trading at a discount compared to its average historical valuations and with a ROCE of 26.3, it has an attractive valuation with a 2.9 Enterprise value to Capital Employed.

  1. KPR Mill Limited
  2. Along with generating a 300% return in the last 1 year, the stock has outperformed BSE 500 in the last 3 years, 1 year and 3 months.

The mid-cap stock has risen 160% since the beginning of this year and has delivered more than 300% return in the last 12 months. Shares of KPR Mill Limited rose 17 per cent to hit an all-time high of Rs 2,349.60 on BSE on Thursday after the Union Cabinet approved production linked incentive (PLI) scheme for the textile sector for manmade fibre (MMF) apparel and fabrics and 10 segments of technical textiles to make the Indian textile sector globally competitive.

  • The scheme will help in increasing India’s share in the manmade textiles and technical textiles sector, Textiles Minister Piyush Goyal said.
  • ICICI Direct said KPR has two major CAPEX projects in the pipeline worth Rs 750 crore towards garmenting facility (Rs 250 crore) and ethanol facility (Rs 500 crore).

It noted that robust opportunities in the US market will give strong visibility for sustained growth in exports. “We model revenue, earnings CAGR of 18%, 21%, respectively, in FY21-23E with higher RoCE of 26%. We like KPR as a structural long-term story to play the apparel export space,” the brokerage house added.

  • It has a ‘Buy’ rating on the stock with a target price of Rs 2310 per share.
  • According to MarketsMojo, the company has a strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.93 times.
  • The technical trend has improved from Mildly Bullish on September 7, 2021, and has generated 14.54% returns since then.

The stock is technically in a Bullish range now and multiple factors for the stock are Bullish like MACD, Bollinger Band, KST and DOW. Published on: Sep 11, 2021, 11:05 AM IST Posted by: Tanya Aneja, Sep 11, 2021, 10:54 AM IST : Wealth creators of D-Street! These 5 stocks turned into multibaggers in 2021; do you own any?

Why is UltraTech cement going down?

UltraTech Cement Ltd’s shares have fallen by as much as 26% so far this calendar year. Investor concerns are understandable. Cost inflation has been a pressing worry and margins are expected to be under pressure during the first half of financial year 2023 (H1FY23). What Happened To Andhra Cement Share View Full Image Under Pressure Many cement companies are expanding capacity, including UltraTech, which has recently announced a 22.6 million tonnes per annum (mtpa) increase in its capacity by FY25. The completion of this round of expansion will take its grey cement capacity to 159.25mtpa. As such, given the huge capacity additions planned by many companies, there are worries on the utilization levels in the sector and the resultant impact on pricing. Ambit Capital reckons UltraTech is growing capacity at 10% compound annual growth rate (CAGR) through FY25, above industry growth, but this expansion would limit industry clinker utilization to <70% through FY25. "That doesn't bode well for pricing power," according to Ambit. That is not all. Competition worries have heightened with the Adani group entering the sector after the latter decided to purchase Holcim's cement business in India. UltraTech has gained market share over the past decade, but may well find it challenging to reap further market share gains following Adani's entry. Against this backdrop, UltraTech's shares have declined and valuations are lower now. However, that is not exciting enough. "The steep correction in the UltraTech stock has made valuations favourable and it is trading below its 10-year and five-year average EV/Ebitda as well as EV per tonne multiples. Based on FY23 estimates, the UltraTech stock trades at EV/Ebitda and EV per tonne of 14.6 times and $164.1, respectively," said Mangesh Bhadang, analyst at Nirmal Bang Equities. "Even so, given the lack of positive news flow in the near term, a further time correction cannot be ruled out," Bhadang said. As such, a meaningful drop in input costs would be a trigger to watch out for. Know your inner investor Do you have the nerves of steel or do you get insomniac over your investments? Let's define your investment approach. Take the test Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates. More Less

Why is UltraTech cement down?

Reasons for UltraTech stock pressure – While UltraTech announcement of its Capex plan of about Rs 12,886 crore to catch up with the increase in competition in the industry is a positive for the company in the long run, the timing of the announcement is the key.

  1. The cement industry is reeling under weak demand, low pricing power, stiff competition, and high input and fuel costs.
  2. Considering the challenging market conditions, the cement stocks including UltraTech could face near-term headwinds in terms of margin erosion and slowdown in revenue.
  3. This is one of the key factors for the correction in cement stocks.

However, a few key brokerage firms including Goldman Sachs, CLSA, Citi and Jefferies have given a ‘buy’ call on the cement major, UltraTech Cement. The Capex plan of the company is aimed to rise capacity by 22.6 million tonnes per annum. And it is expected to be through brownfield and greenfield projects.

  • In a few reports, it was mentioned that the commercial operation from these units would go live in a phased manner by FY25.
  • With this, the company would set up integrated or grinding units and bulk terminals across the country.
  • Accordingly, many analysts the Capex expansion bodes well for the company in the long-term and could help cement its market leadership position in the market.

Considering UltraTech Cement’s strong balance sheet and growth visibility, many analysts expect the company is better placed to withstand any short-term challenges such as low pricing power.

Which is the most profitable cement company in India?

Adani Group to become most profitable cement manufacturer.