Arihant Capital's research report on ACC
ACC Limited reported robust set of numbers for Q2CY21 on YoY basis .Revenue from operations showed a healthy growth YoY basis and grew by 49.3%, however on QoQ basis revenue from operations declined by 10% to INR 3884 cr although it was above our estimate of INR 3795 cr. The YoY growth in topine was backed by healthy volume and realization growth. Sales Volume grew by 42% YoY however declined by 15% Q0Q to 6.8 million tonne against our estimate of 6.5 million tonne. Realization/ton grew by 7.6% YoY and 6.5% QoQ to INR 5712 against our estimate of INR 5838.
Outlook
At CMP of INR 2150 the stock is trading at a EV/EBIDTA multiple of 10(x) and 8.9(x) to its CY21E & CY22E ,we value the stock at EV/EBIDTA multiple 10.5(x) to its CY22E EBIDTA of INR 3608 cr to arrive at a target price of INR 2,460 and maintain Accumulate rating on the stock.
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