Andhra Sugars Ltd
(BSE Code: 590062) (CMP: Rs.370) (FV: Rs.10)
Andhra Sugars Ltd operates through 3 segments: chemicals, sugar and pharmaceuticals. It derives majority of its revenue from the chemicals segment. It holds majority stake in Andhra Petrochemicals Ltd and Jocil Ltd. During Q1FY19, it reported sales of Rs.246.84 crore with PAT of Rs.42.93 crore and an EPS of Rs.15.84. It paid 100% dividend for FY18. The management’s efforts towards de-risking the company from the cyclical nature of its commodity business are reflected in its P&L statement. The stock trades cheap at a P/E of just 8.33x and has the potential to deliver up to 50% returns in the long-term.