Hold ACC; target of Rs 1640: Reliance Securities

Reliance Securities' is bullish on ACC has recommended Hold rating on the stock with a target price of Rs 1640 in its research report dated July 18, 2017.

July 19, 2017 / 15:05 IST

26 Aug, 2025 12:21

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Reliance Securities' research report on ACC

However, realizations may witness some pressure owing to GST roll-out and Government’s possible intervention in the medium term. We cut our EBITDA estimate by 7% and 1% for CY17E and CY18E, respectively mainly to factor in likely pressure on realizations (as channel check suggests) in the medium term. We maintain our HOLD recommendation on the stock with a revised Target Price of Rs1,640.

Outlook

We continue to maintain our positive view on ACC due to its deep penetration in rural markets and strong brand equity. Though we cut our EBITDA estimates, we increase our target EV/EBITDA multiple from 11x to 12x on the back of a) likely merger with Ambuja Cement that may drive its valuations, b) revival in rural demand which will aid ACC due to extensive rural base and c) visible improvement in operating synergies. Hence, we maintain our HOLD recommendation on the stock with a revised Target Price of Rs1,640.

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