Hold ACC; target of Rs 1495: Arihant Capital

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26 Aug, 2025 12:21

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Arihant Capital's report on ACCACC Ltd. posted a negative 40% PAT YoY for its third quarter ended September, 2015 led by poor cement volumes. PAT was at Rs. 115 cr. compared to Rs.190 cr. in the corresponding quarter in financial year 2014. Total sales turnover during the quarter was Rs. 2740 cr as compared to Rs. 2741 cr in the corresponding quarter of 2014. Operating EBITDA declined to Rs.313 cr vs Rs. 379 cr YoY.Valuations:We expect demand for cement to pick up over the coming quarters, with the government increasing focus on infrastructure development as well as on the promising new projects, smart cities and Housing for All. Interest rates have softened, which should translate to increased construction activity and participation by retail home buyers. We have valued stock on EV/EBITDA of 14(x) its FY17 estimates and have arrived at a fair value of Rs 1,495 per share. At CMP of Rs 1,402 the stock is available at FY17E P/E(x) and EV/EBITDA(x) of 16.7x and 13x, respectively at which valuations looks reasonable. We have Hold rating on the stock, says Arihant research report.For all recommendations, click hereDisclaimer: 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.

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