Buy ACC; target of Rs 3272: ICICI Securities

ICICI Securities is bullish on ACC has recommended buy rating on the stock with a target price of Rs 3272 in its research report dated May 18, 2024.

Broker Research

May 30, 2024 / 16:53 IST

BUY

26 Aug, 2025 12:21

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ICICI Securities's research report on ACC

In current times of cement price weakness (hikes attempted in Apr’24 have not only reversed but prices have slipped further in May’24), ACC appears a compelling bet given- a) limited risk of earnings downgrade due to demonstrated cost savings and potent volume benefit from fellow subsidiary Sanghi Industries (under MSA); b) imminent ordering of 4mtpa clinker line in South India, in the near term, offering growth visibility. Further, in the backdrop of - c) it being a beneficiary of the INR 530/t cost saving guidance given by parent Ambuja Cement (ACEM, by FY28); d) strong balance sheet (net cash being ~10% of market cap) and healthy RoEs (13-15%); e) odds of eventual consolidation with parent ACEM (over the long term,

Outlook

in our view) and f) undemanding current valuation of <10x FY26E EV/EBITDA – ACC appears evenly keeled to tide the choppy sector outlook. Maintain BUY with TP of INR 3,272.

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