Buy ACC; target of Rs 1610: HDFC Securities

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26 Aug, 2025 12:21

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HDFC Securities' research report on ACC

ACC delivered earnings beat as sharp reduction in fixed opex moderated the impact of COVID-led revenue loss. Consolidated revenue/EBITDA/APAT fell 37/33/41% YoY to Rs 26.02/5.25/2.71bn respectively in 2QCY20. While cement sales fell 34% YoY, NSR remained flattish YoY (+11% QoQ). A weak 2Q, pulled down 1HCY20 consolidated revenue/EBITDA/APAT by 24/15/16% YoY to Rs 61.04/11.12/5.94bn respectively. We expect the volume decline to slow down in 2HCY20, leading to 15% volume decline in CY20. Healthy pricing, benign fuel prices, and strong cost controls should aid 4% EBITDA CAGR during CY19-22E (despite fall in CY20E).

Outlook

We maintain BUY with a revised target price of Rs 1,610/sh.

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