Buy ACC; target of Rs 2485: Motilal Oswal

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Motilal Oswal's research report on ACC

ACC’s 1QCY22 result was weak as anticipated as energy costs continue to remain at elevated levels. Variable cost/t rose 29% YoY, but fell 2.6% QoQ. Higher cost led to a 26% YoY decline in EBITDA and a 5.7pp YoY drop in OPM. Profit fell 30% YoY.  The better performance of the RMC segment (EBIT margin of 7% v/s 4.6% in 4QCY21), along with higher other operating income, helped ACC to marginally beat our EBITDA estimate by 3%. Profit at INR3.9b was 8% above our estimate.  We have left unchanged our CY22E/CY23E earnings estimates. Despite nearterm challenges due to higher coal/petcoke prices, we maintain our positive stance on the sector given the robust demand outlook. ACC’s capex plans are progressing as per schedule. We maintain our Buy rating on attractive valuations (CY23E EV/EBITDA of 9.1x and EV/t of USD112).

Outlook

ACC trades at 12.2x/9.1x CY22E/CY23E EV/EBITDA and USD118/USD112 CY22E/CY23E EV/t. We value ACC at 11.5x CY23E EV/EBITDA (v/s its 10-year average EV/EBITDA of 12x) to arrive at our TP of INR2,485. We maintain our Buy rating on the stock. In the near-term, news flows regarding Holcim’s possible exit from India will keep the stock in focus.

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

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Read More