Time period given by analyst is one year when ACC Ltd. price can reach defined target.
ACC Ltd., incorporated in the year 1936, is a Large Cap company (having a market cap of Rs 41971.39 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 30-09-2021, the company reported a Consolidated Total Income of Rs 3812.31 Crore, down -3.01 % from last quarter Total Income of Rs 3930.49 Crore and up 6.41 % from last year same quarter Total Income of Rs 3582.82 Crore. Company reported net profit after tax of Rs 448.17 Crore in latest quarter.
Investment Rationale
Factoring in higher opex/ton, the brokerage marginally cuts CY22-23 EBITDA estimates. However, the brokerage raises TP by 2% to Rs2,620 as we roll over to Dec’22 from Sep’22. The revised TP is backed by a DCF analysis (11.25% WACC, 7.0% FCFF growth post FY26) and implies a 1-year forward EV/EBITDA of 11x (vs 10.4x currently).
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.
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