Buy ACC; target of Rs 2923: KR Choksey

KR Choksey is bullish on ACC has recommended buy rating on the stock with a target price of Rs 2923 in its research report dated May 06, 2024.

Broker Research

May 08, 2024 / 12:33 IST

Buy

26 Aug, 2025 12:21

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KR Choksey's research report on ACC

ACC reported better-than-expected numbers, beating estimates across the board. Revenue increased by 12.9% YoY to INR 54,087 Mn (+5.8% vs. our estimate), primarily due to a jump in cement and clinker volumes (+23.5% YoY). EBITDA jumped by 78.6% YoY to INR 8,368 Mn, beating our estimates by 4.9%. The strong operating leverage and lower-than-expected inventory, power & fuel, and employee costs led to EBITDA margins expanding 569 bps YoY. PAT attributable to shareholders increased by 301.0% YoY to INR 9,448 Mn on better-than-expected operational performance, one-time exceptional items, and tax benefits.

Outlook

We maintain our multiple of 13.0x to FY26E EBITDA, reflecting the anticipated benefits of synergies from the parent company. These are expected to enhance margins and profitability for the Company, prompting us to raise our Target Price (TP) to INR 2,923 per share and upgrade our rating to BUY.

For all recommendations report, click here