Should I buy Andhra Petrochemicals stock in 2025?

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At HelloSafe, our expert has been tracking the performance of Andhra Petrochemicals for over three years. Every month, over a million users in India trust us to decipher market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, paid by Andhra Petrochemicals.

Andhra Petrochemicals

The Andhra Petrochemicals stock price

The price of Andhra Petrochemicals stock is rising this week. The current share price stands at ₹57.56, with a 24-hour increase of 5.89% and a weekly gain of 4.37%. Andhra Petrochemicals shows a market capitalization near ₹490 crores and an average trading volume of about 366,800 shares over the past three months. The P/E ratio is currently not applicable due to negative earnings, while the dividend yield is 3.47%. The stock’s beta is 1.19, reflecting higher-than-average market volatility—something investors may consider when evaluating future potential.

Our Full Analysis of the Andhra Petrochemicals Stock

We have conducted a rigorous review of Andhra Petrochemicals’s latest financial results and share price performance over the last three years, cross-examining the company’s evolution with sector trends and peer benchmarks. By integrating extensive quantitative indicators, technical patterns, and our independent fundamental scoring systems, this analysis aims to provide an informed perspective on the stock’s position in the Indian chemical and petrochemical industry. So, why might Andhra Petrochemicals stock once again become a strategic entry point into the specialty chemical sector in 2025?

Recent performance and market context

Andhra Petrochemicals has experienced a visible resurgence in momentum over the past week, with the stock price climbing by 4.37% and a standout 24-hour performance of +5.89%. Despite a prolonged correction over the past year, which saw the stock decline by approximately 50%, recent sessions suggest growing market confidence. This turnaround is underpinned by positive operational signals: annual production of Oxo alcohols reached a historical high at 70,209 MT, while sales volumes crossed 72,730 MT, indicating robust demand on both the domestic and export fronts. On the macroeconomic side, the Indian chemicals sector is poised for expansion, supported by an uptick in public and private infrastructure investment and “Make in India” policy incentives, which position Andhra Petrochemicals favorably among specialty chemical peers. Recent corporate events, including AGM scheduling and stable promoter holding above 45%, further reinforce the narrative of commitment to long-term value creation.

Technical analysis

From the technical perspective, Andhra Petrochemicals is now showing clear signs of stabilization after a sharp retracement. The current Relative Strength Index (RSI) of 63.4 suggests a slight move towards an overbought zone, but remains consistent with the bullish tone of short-term momentum. The MACD, while marginally negative (-0.1), is close to a bullish cross, hinting at an imminent reversal. Importantly, the price has reclaimed all key short- and medium-term moving averages (20-day, 50-day, 100-day), while trading just below the 200-day moving average. This structure points to a developing recovery. Strong technical support is visible at ₹56.09, with near-term resistance at ₹59.82. A sustained move above this level would confirm a bullish reversal and could trigger a breakout toward the ₹74.83 price target (+30%). The action above 6 out of 8 major moving averages highlights a shift in trend and could alert active traders to accumulating positions, making the current zone a compelling entry point for medium-term investors.

Fundamental analysis

On the fundamental side, Andhra Petrochemicals continues to demonstrate resilience, underpinned by enviable operational efficiency and its unique position in the Indian Oxo alcohols market. While the most recent quarter (Q4 FY25) saw a dip in revenues to ₹143.45 crores and net losses due to transient headwinds in input costs and softer demand, the company’s strategic expansion is intact. Year-on-year production growth (+18%) points to strong capacity utilization, supporting future revenue normalization as pricing improves. The dividend yield of 3.47%, well above sector average, signals ongoing commitment to shareholder value even during cyclical downturns. Importantly, the stable public float (53.97%) and low institutional exposure (below 1%) mean that incremental positive news can have an outsized impact on valuation. While the P/E ratio remains non-applicable due to short-term losses, the company’s asset base and consistent capital allocation strategy continue to justify renewed investor interest. Its position as a preferred domestic supplier for Indian infrastructure and consumption-led sectors further fortifies long-term demand visibility, while the company’s solid brand equity, manufacturing expertise, and access to scalable markets provide ample room for future upside.

Volume and liquidity

Trading volume for Andhra Petrochemicals has averaged a healthy 366,800 shares per day over the last 90 days, with a delivery volume ratio of more than 58%. Such numbers reflect robust market liquidity and indicate increasing confidence from both institutional and retail participants. The company’s market capitalization (₹489–490 crores) keeps it squarely in the small-cap growth category, making it an active participant in the high-beta segment. The sizable and stable public float is a positive for future price discovery, opening doors for re-rating as more analysts and funds turn their attention to domestic chemical leaders driven by India’s transformation story.

Catalysts and positive outlook

Several forward-looking catalysts could propel Andhra Petrochemicals into a new phase of growth. The company is favorably positioned to benefit from rising demand in the plasticizer and specialty chemical space, with key clients in the packaging, automotive, and construction sectors driving off-take. Industry tailwinds such as governmental support for import substitution, higher capital expenditure on domestic infrastructure, and possible expansion of product lines will enable Andhra Petrochemicals to capture additional market share. Optimisation of input costs and technology-driven yield improvement initiatives should sustain and enhance margins over FY26–FY27. Capacity expansion initiatives underway could significantly bolster both top-line and bottom-line numbers, especially as macro headwinds fade and the sector returns to a secular growth trajectory. Strategic focus on cost efficiency and value-added products, alongside a possible increase in exports, are expected to catalyze future profitability. Furthermore, ESG-driven investors may look favorably on the company’s environmental compliance, giving Andhra Petrochemicals potential access to premium valuations over time.

Investment strategies

• Short-term: Active traders can seek entry at current support levels, capitalizing on increased momentum and technical recovery emerging above ₹56.09, with a near-term target at resistance (₹59.82) and a bullish trigger on breakout to ₹74.83.
• Medium-term: Investors focused on the next 6–12 months may consider staggered purchases, leveraging sectoral strength and operational normalization. The expected stabilisation in input costs and persistent demand from downstream industries strengthen the recovery thesis.
• Long-term: Buy-and-hold investors may utilize current valuations to accumulate positions, banking on Andhra Petrochemicals’s expanding market share in the Oxo alcohols segment and enduring tailwinds from India’s chemicals capex cycle. With a track record of dividend payouts and prudent financial management, Andhra Petrochemicals appears well-placed to outperform as the sector matures.

A disciplined entry ahead of key catalysts—such as the Q1 FY26 earnings release, visible improvement in sector sentiment, or concrete announcements on capacity expansion—may prove highly advantageous.

Is it the right time to buy Andhra Petrochemicals?

A holistic review reveals Andhra Petrochemicals is at an inflection point. The firm’s robust manufacturing infrastructure, dominant share in a fast-growing chemical segment, and compelling dividend profile provide it with a strong base for accelerated growth when sector tailwinds resume. Stable trading volumes, attractive yield, and growing technical momentum further reinforce the stock’s appeal. While near-term volatility remains, the convergence of positive technical signals, favorable policy landscape, and clear strategic positioning suggest the fundamentals justify renewed interest. For investors seeking exposure to the Indian specialty chemical space, Andhra Petrochemicals seems to represent an excellent opportunity—and the stock may be entering a new bullish phase. The months ahead could well see Andhra Petrochemicals reclaim leadership among small-cap chemical names, with technical and operational drivers aligning to support expansion and value creation for patient, disciplined investors.

How to buy Andhra Petrochemicals stock

Buying Andhra Petrochemicals stock online is straightforward and secure when you use a regulated broker in India. You can choose between buying the actual shares (spot or cash purchase) and trading using Contracts for Difference (CFDs), each offering different benefits. Cash buying means holding the real shares, while CFDs allow you to trade with leverage. Both approaches are accessible on user-friendly platforms, and your investment is protected by local regulations. For a side-by-side broker comparison, see further down the page.

Spot buying

A spot (cash) purchase of Andhra Petrochemicals stock means you become the actual owner of the shares on the NSE or BSE. With cash buying, you typically pay a fixed commission per transaction—often around ₹20 to ₹50 per order in the Indian market.

Gain Scenario Example: Andhra Petrochemicals

If the Andhra Petrochemicals share price is ₹57.56, you can buy around 17 shares with a $1,000 stake (assuming ₹83/$1), including a brokerage fee of around $5. ✔️ Gain scenario: If the share price rises by 10%, your shares are now worth $1,100. Result: +$100 gross gain, i.e. +10% on your investment.

Trading via CFD

CFD (Contract for Difference) trading on Andhra Petrochemicals allows you to speculate on the share price movement without owning the underlying shares. This method typically involves paying a spread (the difference between the buy and sell price) and overnight financing fees if you hold positions open beyond one day. CFDs let you use leverage—amplifying both potential gains and risks.

Gain scenario

You open a CFD position on Andhra Petrochemicals shares, with 5x leverage.

This gives you a market exposure of $5,000.

If the stock rises by 8%, your position gains 8% × 5 = 40%.

Result: +$400 gain, on a bet of $1,000 (excluding fees).

Final advice

It is essential to compare brokers’ fees and platform features to find the one best suited to your needs. Your choice between cash equity and CFD trading should always reflect your investment goals, risk appetite, and preferred trading style. For more details on costs and options, refer to the broker comparison further down this page.

Our 7 tips for buying Andhra Petrochemicals stock

The latest news about Andhra Petrochemicals

Andhra Petrochemicals stock posted a significant intraday gain of 5.89% over the past 24 hours. This strong price movement saw the stock close at ₹57.56, marking one of the best single-day performances this month and reflecting renewed interest from Indian retail and institutional investors.

Technical indicators show Andhra Petrochemicals trading above key short-term moving averages. The security is currently above its 20-, 50-, and 100-day moving averages, while remaining slightly below its 200-day average, resulting in a mostly neutral-to-positive technical trend and strengthening its appeal to momentum traders on NSE and BSE.

Consensus among market participants highlights robust volume delivery, with 58.13% of traded shares taken into delivery this week. This indicates continued long-term investor commitment and may signal confidence in the company’s strategic positioning within the Indian chemicals sector.

The company has maintained a steady 3.47% dividend yield following its latest declaration of ₹2 per share. The attractive payout could be a positive factor for domestic investors seeking stable dividend income from locally listed chemical sector companies.

Andhra Petrochemicals is benefiting from ongoing optimism about a recovery in India’s plasticizer industry demand. Recent market reports point to improving capacity utilization and perspectives for cost optimization that could, over the medium term, support both financial results and shareholder value despite last quarter’s operational losses.

FAQ

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.