Prabhudas Lilladher has maintained its underperformer rating on ACC in its April 16, 2008 research report. "At current market price, the stock trades at P/E of 10.8x and 11.9x CY08E and CY09E respectively, while on EV/EBITDA it trades at 5.9x and 6.8x CY08E and CY09E respectively. The industry’s pricing power is expected to dilute sharply with the commissioning of massive capacity addition lined-up across regions. We expect addition of 84 million tonnes in the next two years on conservative basis, against incremental demand of 60 million tonnes, leading to a huge supply surplus situation. In addition to this, domestic coal prices, which used to be administered prices in the past, are now moving towards market-determined mechanism. We maintain Underperformer rating on the stock," says Lilladher's research report.

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