IIFL picks 13 lucky must-have stocks in 2013

ACC

Current Market Price (CMP): Rs 1,432

18-month Target: Rs 1,755

Upside: 22.6%

Rationale: Despite a strong balance sheet, ACC trades at a 20% discount compared to its peers like Ultratech on EV/ton basis. Return ratios, which were on a declining mode, are expected to improve in CY13 and CY14. Debt/equity continues to remain low as most of the recent expansion has been funded through internal accruals.

Key risks
=>Fall in cement prices,
=>Government interference in the form of price caps, hike in duties etc and
=>Drought like situation leading to subdued demand.