ACC Ltd., incorporated in the year 1936, is a Large Cap company (having a market cap of Rs 42115.99 Crore) operating in Cement sector.
ACC Ltd. key Products/Revenue Segments include Cement, Other Operating Revenue, Scrap, Other Services for the year ending 31-Dec-2020.
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 3930.49 Crore, down -9.35 % from last quarter Total Income of Rs 4335.94 Crore and up 48.12 % from last year same quarter Total Income of Rs 2653.52 Crore. Company reported net profit after tax of Rs 566.18 Crore in latest quarter.
Investment Rationale
ACC’s Q3CY21 EBITDA at Rs7.1bn (up 6% YoY) was broadly in line with consensus estimates. Total cost/te increased 4.6% QoQ (6.8% YoY) primarily led by higher fuel cost, and packing materials and maintenance costs. Blended EBITDA/te (including RMC) grew 7% YoY and declined 15% QoQ to Rs1,060/te (I- Sec: Rs977/te). While investor concern around sharp cost increases seem valid, industry has demonstrated strong pricing resilience in the past. The brokerage believes ACC with its large pan-India diversified market presence, premium brand positioning and increased focus on cost efficiencies is better placed to sustain / improve margins in the medium term. It maintains BUY with revised target price of Rs2,710/share (earlier: Rs2,610) based on 11x Sep’23E EV/E on quarterly rollover. Key risks: Lower demand/prices.
Promoter/FII Holdings
Promoters held 54.53 per cent stake in the company as of 30-Sep-2021, while FIIs owned 23.69 per cent, DIIs 9.29 per cent.
(Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. Please consult your financial adviser and seek independent advice.
