Arihant Capital recommended accumulate rating on ACC Ltd with a target price of Rs 1778 in its research report dated April 19, 2018.
Arihant Capital's research report on ACC Ltd
ACC Ltd. reported a strong set of numbers in its first quarter of CY2018. Net profit for the quarter came in at Rs. 250cr as compared to Rs. 211 cr in the corresponding quarter of previous year registering a growth of 19% YoY. Total income for the quarter came in at Rs. 3,625 cr as compared to Rs. 3,174 cr in the corresponding quarter of CY 17, up 14% YoY and increased 4% sequentially.
OutlookWe have valued the stock at 11(x) its EV/EBITDA of CY19 estimate and have arrived at a fair value of Rs 1,778 per share. This is an upside of 13%. At CMP of Rs 1573 the stock is available at CY19E P/E(x) of 22.4 (x) and CY17 EV/EBITDA(x) of 14.1 (x) respectively. We have “ACCUMULATE” rating on the stock.
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