Accumulate ACC; target of Rs 1457: Arihant Capital

Arihant Capital recommended accumulate rating on ACC with a target price of Rs 1457 in its research report dated July 21, 2020.

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July 21, 2020 / 18:06 IST

26 Aug, 2025 12:21

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Arihant Capital 's research report on ACC

ACC Limited Q2CY20E got impacted due to nation-wide lockdown for the first month of April. Consolidated revenue stood at Rs 2,602 Cr, a decline of 37.3% YoY/25.7% QoQ, EBITDA stood at Rs 525 Cr, decreasing by 32.9% YoY/10.4% QoQ and PAT at Rs 271 Cr, down 40.5% YoY/16.1% QoQ. The sharp decline in revenue could be attributed to the nation-wide lockdown for the month of April and then a gradual but rather slow re-opening of the economy. The total sales of cement by volume decreased to 4.8 million tonne (down 34% YoY) and RMX volume declined to 0.15 million cubic metre (down 83% YoY) while realization per tonne improved by a percentage point to Rs 5,048 per tonne over Q2CY19. However, with zero debt of the company and superior management over the years, the company steered through the quarter pretty well against its peers.

Outlook

Due to the current scenario of intermittent lockdowns in certain covid hotspots and a stronger than normal monsoon this year, the impact of coronavirus is expected to linger for another quarter and get better by the last quarter of 2020. Hence, we remain positive with the business outlook on the company and maintain our HOLD rating.

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