Arihant Capital's research report on ACC
ACC Limited reported weak set of numbers in Q4CY21 and were below our estimates on operating profit and bottom line front .Revenue from operations grew by 2% YoY and 12.7% QoQ to INR 4226 cr above our estimate of INR 3668 cr. The growth in topine was backed by volume and realization growth. Sales Volume grew by 13.6% QoQ despite muted cement demand during the quarter, however declined by 2.6% YoY to 7.5 million tonne in line with our estimate of 7.5 million tonne. Realization/ton grew by 6.2% YoY and declined by 0.8% QoQ to INR 5634 against our estimate of INR 5626 .Price hike taken in cement prices helped in improved realization on YOY basis.
Outlook
At CMP of INR 2233 the stock is trading at a EV/EBIDTA multiple of 10.5(x) and 8.6(x) to its CY22E & CY23E ,we value the stock at EV/EBIDTA multiple 10.0(x) to its CY23E EBIDTA of INR 3741 cr to arrive at a target price of INR 2,515 and assign Accumuate rating on the stock.
More Info
At 17:30 ACC was quoting at Rs 2,243.10, up Rs 10.05, or 0.45 percent.
It has touched an intraday high of Rs 2,265.00 and an intraday low of Rs 2,216.55.
It was trading with volumes of 5,134 shares, compared to its thirty day average of 16,641 shares, a decrease of -69.15 percent.
In the previous trading session, the share closed up 3.63 percent or Rs 78.30 at Rs 2,233.05.
The share touched its 52-week high Rs 2,587.95 and 52-week low Rs 1,686.75 on 15 November, 2021 and 23 February, 2021, respectively.
Currently, it is trading 13.84 percent below its 52-week high and 32.19 percent above its 52-week low.
Market capitalisation stands at Rs 42,122.56 crore.
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