ACC share price gains 7% post Q2 numbers; CLSA, Jefferies raise target

Cement maker ACC share price made a concrete gain of 7 percent intraday on July 21 after the company posted June quarter numbers.

The company on July 20 reported a 40.53 percent decline in consolidated net profit to Rs 270.95 crore for the quarter ending June.

The company, which follows January-December financial year, had posted a profit of Rs 455.68 crore in the same quarter a year ago.

Its total revenue from operations was down 37.29 percent to Rs 2,602.24 crore during the quarter under review as against Rs 4,149.82 crore in the year-ago period.

Here's what brokerages are saying about the stock and the company:

CLSA | Rating: Buy | Target: Raised to Rs 1,675 from Rs 1,575

The company has reported strong results with EBITDA of Rs 520 crore, which was down 10 percent QoQ.

The higher volume decline was offset by lower costs & higher realization. Its blended EBITDA/ton was up 22 percent QoQ & is the best in a decade. CLSA raised EBITDA estimates by 3-6 percent, reported CNBC-TV18.

Citi | Rating: Buy | Target: Rs 2,100

The stock trades at 10x 1-yr forward EV/EBITDA on consensus. Company should continue to focus on margins & profitability and Citi remain constructive on the stock, reported CNBC-TV18.

Nomura | Rating: Neutral |Target: Rs 1,250

The earnings was a beat on higher realisations/lower costs. However, the volume was marginally lower, while cement realisations were significantly higher.

The higher volume growth, cement prices & fall in operating costs are key upside risks, reported CNBC-TV18.

Jefferies | Rating: Buy | Target: Raised to Rs 1,700 from Rs 1,500

The Q2 earnings address key investor concerns on its ability to optimise the costs. The sector would see volatile trends due to tough macro, while ACC & Ambuja are the best plays. Broking house raised EPS estimates by 11-24 percent to factor in lower than expected costs, reported CNBC-TV18.