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ICICI Securities has buy call on with a target price of Rs 2710. The current market price of ACC is Rs 2244.1.
Time period given by analyst is one year when ACC Ltd. price can reach defined target.
ACC Ltd., incorporated in the year 1936, is a Large Cap company (having a market cap of Rs 42120.68 Crore) operating in Cement sector.
ACC Ltd. key Products/Revenue Segments include Cement, Other Operating Revenue, Scrap, Other Services for the year ending 31-Dec-2020.
Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 3812.31 Crore, down -3.01 % from last quarter Total Income of Rs 3930.49 Crore and up 6.41 % from last year same quarter Total Income of Rs 3582.82 Crore. Company reported net profit after tax of Rs 448.17 Crore in latest quarter.
Investment Rationale
ACC has delivered 11% EBITDA/te CAGR over CY16-CY21E vs 7% for coverage universe led by increased cost efficiencies. ACC’s EBITDA/te inched up to Rs1,127/te during 9MCY21E resulting in narrowing of the gap vs peers. With higher cost efficiencies via project Parvat, MSA with ACEM and better market / product mix, this gap may shrink further. Ametha expansion (of 5mnte) provides volume visibility over CY22E-CY24E. Net cash may further increase up to Rs88bn by CY23E from Rs60bn in H1CY21 thereby increasing probability of higher dividend payout. Given our expectations of ~12% EBITDA CAGR over CY21-CY23E and RoCE of 15%, valuation at <9xcy23e eve seems attractive and below the long-term average of 11x. valuation gap vs peers may also narrow with improving ebitdate. maintain buy an unchanged target price rs2,710 share basedon 11x cy23e e. key risks:lower demand prices.
Promoter/FII Holdings
Promoters held 54.53 per cent stake in the company as of 31-Dec-2021, while FIIs owned 23.22 per cent, DIIs 9.79 per cent.
Time period given by analyst is one year when ACC Ltd. price can reach defined target.
ACC Ltd., incorporated in the year 1936, is a Large Cap company (having a market cap of Rs 42120.68 Crore) operating in Cement sector.
ACC Ltd. key Products/Revenue Segments include Cement, Other Operating Revenue, Scrap, Other Services for the year ending 31-Dec-2020.
Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 3812.31 Crore, down -3.01 % from last quarter Total Income of Rs 3930.49 Crore and up 6.41 % from last year same quarter Total Income of Rs 3582.82 Crore. Company reported net profit after tax of Rs 448.17 Crore in latest quarter.
Investment Rationale
ACC has delivered 11% EBITDA/te CAGR over CY16-CY21E vs 7% for coverage universe led by increased cost efficiencies. ACC’s EBITDA/te inched up to Rs1,127/te during 9MCY21E resulting in narrowing of the gap vs peers. With higher cost efficiencies via project Parvat, MSA with ACEM and better market / product mix, this gap may shrink further. Ametha expansion (of 5mnte) provides volume visibility over CY22E-CY24E. Net cash may further increase up to Rs88bn by CY23E from Rs60bn in H1CY21 thereby increasing probability of higher dividend payout. Given our expectations of ~12% EBITDA CAGR over CY21-CY23E and RoCE of 15%, valuation at <9xcy23e eve seems attractive and below the long-term average of 11x. valuation gap vs peers may also narrow with improving ebitdate. maintain buy an unchanged target price rs2,710 share basedon 11x cy23e e. key risks:lower demand prices.
Promoter/FII Holdings
Promoters held 54.53 per cent stake in the company as of 31-Dec-2021, while FIIs owned 23.22 per cent, DIIs 9.79 per cent.
(Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. Please consult your financial adviser and seek independent advice.
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