India Infoline has maintained buy rating on ACC with target price of Rs 525 in its July 25, 2008 report. "ACC’s standalone PAT for 2QCY08 declined 25% YoY to Rs 2.6 bn vs our expectation of Rs 2.9 bn, as costs increased sharply. Net sales declined 3% YoY to Rs 17.9 bn vs our expectation of Rs 17.7 bn. The results are not strictly comparable to the year-ago period’s, as ACC hived off its RMC division into a separate subsidiary from 1 January 2008. On the positive side, per-tonne cement realisation increased higher than our expectation despite a difficult environment. Earlier this month, the Uttar Pradesh government restored with retrospective effect the sales-tax benefit it had withdrawn from 1 of January 2008. This will help improve ACC’s realisations in the coming quarter. Going forward, we expect ACC to report muted volume growth due to capacity constraints. With costs escalating and the company unable to pass them on, we expect earnings to come under further pressure going forward. We maintain our earnings estimates and recommend Reduce with a target price of Rs 525."  According to India Infoline report.