ACC an underperformer: Prabhudas Lilladher

RELATED NEWS Buy Pennar Industries, target of Rs 41: Karvy Buy Hindustan Zinc, target of Rs 830: Karvy Buy HEG, target of Rs 444: Networth Buy Rolta India, target of Rs 350: Khandwala Sell Infotech Enterprises, target of Rs 245: IndiaInfoline ACC BSE | NSE 10/02/12 Are Mutual Funds betting on ACC?

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.

 

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

 

For further details click on attachment.......