Neutral ACC; target of Rs 2000: Motilal Oswal

Motilal Oswal's research report on ACC

The key highlights of ACC’s FY23 annual report: 1) Ametha greenfield expansion has been delayed by six to nine months and is now likely to be commissioned in 2QFY24; 2) Environmental clearance was granted for the Salai Banwa split grinding unit in Nov’22 with capacity of 3mtpa; however, there was no comment on the status of the expansion and the commissioning date; 3) It aims to realize cost savings of about INR500/t by increasing green power share, higher usage of alternative fuel and process optimization.

Outlook

We value ACC at 11x FY25E EV/EBITDA to arrive at a revised TP of INR2,000 and maintain our Neutral rating on the stock.