Should I buy Andhra Petrochemicals stock in 2025?

What is Andhra Petrochemicals?

How much is Andhra Petrochemicals stock?

The price of Andhra Petrochemicals stock is rising this week. As of now, the current share price stands at ₹61.28, showing a slight 24-hour gain of ₹0.06 (+0.10%) and a strong 10.65% increase over the past week.

Given the recent uptick and above-average volatility, this stock offers both potential rewards and risks for active investors in India.

Our full analysis on Andhra Petrochemicals stock

After a comprehensive review of Andhra Petrochemicals Ltd.’s latest financials and a rigorous analysis of its three-year stock performance, our proprietary model—which synthesises financial ratios, technical factors, sectoral data, and peer benchmarking—has identified promising signals. The convergence of improving momentum, underlying balance sheet strength, and imminent catalysts prompts a pivotal question for Indian investors: Could Andhra Petrochemicals once again emerge as a strategic entry point into the country’s resilient chemicals sector in 2025?

Recent Performance and Market Context

Andhra Petrochemicals’ share price currently stands at ₹61.28, reflecting a robust weekly gain of 10.65% that distinctly contrasts with a challenging six-month trend (-23.19%) and a 31.91% decline over the past year. This sharp recent recovery signals a shift in market sentiment, underpinned by optimism going into a critical results cycle. The upturn comes ahead of the anticipated board meeting on May 24, 2025, where the company is set to announce its full-year audited financials—a potential inflection point for investors.

The broader sector backdrop is supportive. India's chemicals and petrochemicals industry continues to benefit from strong demand in end-user segments like agriculture, manufacturing, pharma, and FMCG, aided by favorable government policies and global realignment of supply chains. With commodity chemical players seeking to recover pricing power, Andhra Petrochemicals is well-positioned as a leading domestic oxo-alcohols producer.

• ICRA reaffirmation of long-term ‘A-’ and short-term ‘A2+’ ratings (Sept 2024), underscoring Andhra Petrochemicals’ stable financial footing even through cyclical headwinds.
• Contractual stability via long-term raw material arrangements with Hindustan Petroleum Corporation Ltd. (HPCL).
• Dividend continuity (3.26% yield), reinforcing the company’s commitment to shareholder returns despite temporary operational headwinds.

Technical Analysis

Technically, Andhra Petrochemicals exhibits a reassertion of bullish momentum:

• Relative Strength Index (RSI): At 66.07, the RSI sits in the upper neutral-to-bullish band, indicating renewed buying interest but not yet in extreme overbought territory—thus leaving room for further upside.
• MACD: The MACD positive crossover (1.28) reinforces short-term bullish signals and a reversal from the year’s downtrend.
• Moving Averages:
• The stock trades comfortably above its 20-day (₹57.11) and 50-day (₹54.09) moving averages, a classic sign of positive short-term momentum.
• The 100-day moving average (₹60.50) now acts as strong dynamic support, further reinforcing the foundation for higher price action.
• The only notable technical resistance is the 200-day MA (₹75.23), underscoring medium-term breakout potential.
• Support/Resistance: Multiple support levels between ₹58.72–₹60.35 offer a cushion for new entries, with near-term resistances at ₹61.98, ₹62.68, and ₹63.61 being within striking distance should the current momentum persist.
• ADX (17.26): While still indicative of a non-trending market, the sharp weekly move suggests an incipient trend formation—an ideal environment for investors looking to position ahead of a technical acceleration.

In summary, the technical structure supports the thesis that Andhra Petrochemicals could be in the early stages of a new bullish phase, particularly as volumes return and sentiment improves.

Fundamental Analysis

Despite recent operational setbacks reflected in the Q3 FY25 results (revenue of ₹124.53 crore, net loss of ₹15.16 crore), Andhra Petrochemicals’ fundamental appeal remains intact:

• Valuation:
• The P/E ratio stands at a moderate 12.68, notably attractive when indexed to its sector and well below peak-cycle multiples.
• The price-to-book (P/B) ratio is 0.95, indicating the stock trades at a slight discount to its book value (₹64.83/share)—a classic hallmark of undervaluation often preceding reratings.
• Projected annual revenue growth of 15.48% suggests that the recent earnings softness may be cyclical and likely to reverse as macros turn.
• Balance Sheet Quality:
• Virtually debt-free, with a debt-to-equity ratio of 0.00—this is a rare strength in the sector, enabling Andhra Petrochemicals to weather volatility, invest counter-cyclically, and maintain operational flexibility.
• Robust liquidity, with a current ratio of 10.44, underpins both working capital adequacy and dividend-paying capacity.
• Return to Shareholders:
• With a 3.26% dividend yield and a payout ratio of 27%, Andhra Petrochemicals stands out among Indian mid-cap chemical names for consistent and attractive distributions.
• Strategic Positioning:
• Market leader in oxo-alcohols (73,000 MTPA capacity), serving diversified industries (pesticides, dyes, textile, food, fertilizer, healthcare).
• Stable long-term contracts (notably with HPCL) ensure raw material security and revenue visibility.
• Brand and Governance:
• Promoter shareholding remains stable at 45.04%, reflecting management alignment with shareholders’ long-term interests.

In aggregate, these fundamental levers both justify and reinforce renewed interest in Andhra Petrochemicals, especially at current valuations and ahead of potential sector tailwinds.

Volume and Liquidity

Over the past twenty days, Andhra Petrochemicals has averaged 154,326 shares in daily trading volume, with the latest session registering a healthy 50,547 shares. The resurgence in volume—particularly during upswings—signals renewed institutional and retail interest, historically a precursor to further price expansion.

The float remains favorable, balancing liquidity for active traders and daily price discovery, while permitting robust valuation adjustment as positive catalysts unfold. The relatively low free float compared to market cap supports dynamic repricing when market sentiment turns decisively bullish.

Catalysts and Positive Outlook

Several factors combine to create a notably constructive outlook for Andhra Petrochemicals over the coming quarters:

• Imminent Earnings Announcement: The scheduled board meeting and results declaration on May 24, 2025, may provide a near-term catalyst in the form of operational turnaround signals or updated strategic guidance.
• Sector Recovery: As demand for oxo-alcohols rebounds and commodity price volatility moderates, the company should benefit from improved sales, higher capacity utilization, and margin recovery.
• Structural Growth: Ongoing government push for domestic manufacturing, 'Atmanirbhar Bharat' initiatives, and increasing demand from downstream industries all serve to underpin robust medium- to long-term growth prospects.
• ESG and Sustainability: While Andhra Petrochemicals is yet to formally announce new sustainability initiatives, the sector trend towards eco-friendly chemical processes and products holds latent potential for future re-rating.
• Dividend Continuity and Income Focus: Investors seeking dependable income streams will continue to value Andhra’s strong dividend track record.

Investment Strategies

Given the current setup, Andhra Petrochemicals seems to represent an excellent opportunity across multiple timeframes:

• Short-Term: For nimble traders, the stock’s close proximity to support (₹60.35–₹58.72), current momentum, and likely pre-results positioning can offer handsome swing opportunities. Monitoring reaction around resistance levels (₹61.98–₹63.61) may optimize entry/exit.
• Medium-Term: Medium-term investors could look to build positions ahead of the earnings catalyst, with the expectation that operational improvement will support a re-rating towards the computed 30% price target of ₹79.66.
• Long-Term: Value-oriented and dividend-focused investors will appreciate the strong balance sheet, sector moats, management credibility, and resilient payout profile, making Andhra Petrochemicals an attractive long-term holding during cyclical troughs.

Strategically, position-sizing around technical support with staggered accumulation remains prudent, especially with a view to capitalize on sectoral or company-specific catalysts that may unfold in the months ahead.

Is It the Right Time to Buy Andhra Petrochemicals?

Synthesizing the data, Andhra Petrochemicals currently offers a unique combination of value, income, and leverage to sector recovery—attributes that justify serious consideration from investors seeking to balance risk and upside. The stock’s technical structure, attractive valuation (P/E 12.68, P/B 0.95), debt-free profile, robust liquidity, and continuity in dividends all indicate that Andhra Petrochemicals may be entering a new bullish phase.

With an imminent financial reporting catalyst, supportive sector trends, and strong balance sheet, the upside potential appears compelling. For those seeking exposure to a credible domestic chemicals leader with limited balance sheet risk and solid institutional support, Andhra Petrochemicals seems positioned at a technical and strategic inflection point in 2025.

In summary, while prudent risk assessment remains essential given the stock’s historical volatility and recent operational challenges, Andhra Petrochemicals’ current setup appears to represent an excellent opportunity for investors to revisit or initiate exposure in alignment with India’s evolving chemicals megatrend. The convergence of technical, fundamental, and macro tailwinds suggests that those who position ahead of the coming results may find themselves advantageously placed as the company navigates its next growth cycle.

How to buy Andhra Petrochemicals stock in India?

Buying Andhra Petrochemicals stock online is both simple and secure when you use a regulated broker in India. Retail investors can choose between two main methods: direct purchase of shares (for long-term holding and dividends) or trading Contracts for Difference (CFDs), which allows you to speculate on the share price movements without owning the shares. Both approaches can be accessed conveniently via broker platforms and offer different benefits. Below, we break down each method in detail—with a handy broker comparison further down the page, so you can make an informed choice.

Cash Buying

A cash purchase means buying Andhra Petrochemicals shares directly on the BSE or NSE through a registered broker. You become a shareholder, benefit from potential price appreciation, and may receive dividends. Indian brokers usually charge a fixed commission per order—often between ₹20 and ₹50—or a percentage-based brokerage fee. For example, with Andhra Petrochemicals trading at ₹61.28 per share, investing ₹1,000 lets you buy approximately 16 shares, after accounting for an average brokerage fee of ₹40.

Gain scenario example

Gain scenario: If the share price rises by 10%, your holdings are now worth about ₹1,100.
Result: That’s a ₹100 gross gain, or +10% on your investment (excluding taxes and charges).

Trading via CFD

CFD trading allows you to speculate on Andhra Petrochemicals share price—up or down—without actually owning the shares. You trade with leverage, so your capital goes further, but this also raises your risk. With CFDs, you pay a spread (the difference between buy and sell prices set by the broker) and overnight financing costs if you hold positions beyond a day. For example, with a ₹1,000 stake and 5x leverage, you control ₹5,000 worth of Andhra Petrochemicals stock.

CFD profit example

Gain scenario: If the stock rises by 8%, your CFD position’s return is 8% × 5 = 40%.
Result: You’d earn ₹400 (excluding spreads and financing), turning your ₹1,000 investment into ₹1,400.

Final Advice

Before you buy or trade Andhra Petrochemicals shares, it’s wise to compare broker fees, platforms, and terms—costs and conditions can vary widely. Your best option depends on your goals: traditional share purchase suits long-term investors seeking dividends and gradual appreciation, while CFDs are more suited to active traders comfortable with higher risk and leverage. For a comprehensive broker comparison in India, please refer to the table further down the page.

Our 7 tips for buying Andhra Petrochemicals stock

The latest news about Andhra Petrochemicals

The Andhra Petrochemicals stock surged 10.65% this week, overcoming recent year-long weakness. After a steep 31.91% decline over the past year, the stock demonstrated robust short-term recovery, trading at ₹61.28 as of May 19, 2025, up 0.10% intraday and making gains above support levels. This positive price action was supported by increased trading volumes and signals of revived investor interest, especially as the stock moved consistently above its 20-day and 50-day moving averages, reinforcing the short-term bullish momentum in the Indian market context.

Technical indicators point to persistent short-term bullishness, with RSI nearing overbought territory, and trends remaining favorable for Indian investors. The stock’s Relative Strength Index stands at 66.07, just shy of classical “overbought” levels, and the bullish MACD coupled with a current market price above crucial support points (₹60.35, ₹59.42) suggest sustained upward momentum. The technical setup, with the price outperforming short-term moving averages and an ADX of 17.26 reflecting a non-trending yet positive market, provides an encouraging narrative for active Indian market participants seeking short-term tactical opportunities.

Andhra Petrochemicals retains strong fundamental strengths, with near-zero debt, attractive dividend yield, and a stable liquidity position. The company’s fundamentals are particularly appealing in the domestic context: a debt-to-equity ratio of zero, a strong current ratio of 10.44, and a healthy dividend yield of 3.26%, which is compelling for income-focused Indian investors. Promoter holding remains high at 45.04%, lending confidence in management stability, while the company’s strategic supply partnership with Hindustan Petroleum and tax-advantaged dividend structure continue to appeal under Indian regulatory frameworks.

A Board meeting scheduled for May 24, 2025, to approve FY 2024-25 results could provide fresh catalysts or guidance. This anticipated event is closely watched by market participants, as the release of audited annual results is expected to clarify the ongoing operational recovery and inform future guidance. The engagement illustrates proactive governance and is a key milestone for investors looking to gauge the company’s progress in overcoming recent margin pressures and revenue declines, particularly relevant given the Indian market’s focus on transparency and periodic disclosure.

The company’s projected annual revenue growth rate of 15.48% reflects optimism amid a stabilizing Indian petrochemicals sector. Despite recent quarterly earnings setbacks, the forecasted growth rate and the affirmed ICRA ratings (‘A-’ long-term, ‘A2+’ short-term) underpin confidence that Andhra Petrochemicals is equipped to capitalize on India’s increasing demand for oxo-alcohols across multiple industrial segments including agriculture, healthcare, and manufacturing, enhancing prospects for both income and growth-oriented investors in the region.

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P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.