Buy ACC; target of Rs 2110: HDFC Securities

HDFC Securities' research report on ACC

During Q5FY23 (financial year moved to Mar vs Dec), ACC’s EBITDA margin recovered a modest INR 70 per MT QoQ to INR 550 per MT. Weak pricing in south reduced the benefits of opex moderation. The long pending Ametha integrated plant is expected in Q2FY24E. The management is yet to announce major expansions in ACC. However, it is taking up various green energy initiatives which should drive margin expansion.

Outlook

We maintain BUY on ACC, with a revised TP of INR 2,110/share (11x its Mar25E consolidated EBITDA.