Buy ACC; target of Rs 2400: YES Securities

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26 Aug, 2025 12:21

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YES Securities' research report on ACC

ACC Ltd (ACC) reported resilient result sequentially with volume growth of +3% and NSR up by +1% translates in revenue growth of 5%. As total cost remained flat sequentially, EBITDA margin improved to 14.3% (+117 bps) v/s YSEC 13.3% in Q1CY22. ACC’s higher capacity utilization rate (+90%) due to slower capacity addition than industry resulted in stagnant volumes and market/capacity share loss. Recently, ACC lined up capacity addition that would provide production headroom to grow its volume from CY22E onwards. Therefore, we expect a volume growth of 8% in both CY22/23E. Due to the elevated fuel & diesel price, we have lowered our EBITDA/PAT estimate by 19/26% for CY22E while kept unchanged for CY23E envisaging cost normalization. Additionally, ACC also eyeing to improve its operating efficiency by scaling up WHRS capacity to 75 MW.

Outlook

At CMP, stock is trading at 11/8x of EV/EBITDA on CY22/23E. Due to recent steep correction and TP of Rs2,400 at 10x EV/EBITDA on the CY23E estimate, we recommend ‘BUY’ (earlier ADD).

More Info

At 12:53 hrs ACC was quoting at Rs 2,205.80, up Rs 147.90, or 7.19 percent.

It has touched an intraday high of Rs 2,210.80 and an intraday low of Rs 2,063.00.

It was trading with volumes of 71,107 shares, compared to its thirty day average of 18,172 shares, an increase of 291.30 percent.

In the previous trading session, the share closed down 4.44 percent or Rs 95.65 at Rs 2,057.90.

The share touched its 52-week high Rs 2,587.95 and 52-week low Rs 1,784.15 on 15 November, 2021 and 22 April, 2021, respectively.

Currently, it is trading 14.77 percent below its 52-week high and 23.63 percent above its 52-week low.

Market capitalisation stands at Rs 41,422.11 crore.For all recommendations report, click here

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