Hold ACC; target of Rs 1528: Arihant Capital

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26 Aug, 2025 12:21

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Arihant Capital's research report on ACC ACC Ltd. posted a negative growth in net profit YoY for its first quarter ended March, 2016. However, net profit has more than doubled over the previous quarter. Net profit for the quarter came in at Rs. 223 cr compared to Rs. 232 cr in the corresponding quarter of previous year (de-growth of 3.7%) and Rs 100 cr sequentially. Total sales turnover during the quarter was Rs. 2,991 cr as compared to Rs. 3,080 cr in the corresponding quarter of 2015. EBITDA for the company stood at Rs. 434 cr vs. Rs. 609 cr YoY. Cement volumes were at 6.4 MT higher by 10.3% compared to the corresponding quarter of previous year & higher by 6.7% sequentially. Cement demand showed improvement & premium products volume increased by 53% YoY and 44% QoQ. Realizations were weak dropping by more than 3% QoQ & 8% YoY. Capacity utilization stood at 85% above the industry level of 74%. RMX volume for the quarter grew by 13% compared to the corresponding quarter of previous year as well sequentially. We have valued stock on EV/EBITDA of 15 (x) its FY17 estimates and have arrived at a fair value of Rs 1,528 per share. At CMP of Rs 1,443 the stock is available at FY17E P/E(x) and EV/EBITDA(x) of 26.7 (x) and 13.8 (x) respectively. We have “Neutral” rating on the stock.

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