Emkay Global Financial has given Buy recommendation for ACC with a target price of Rs. 2425 in its research report issued on Apr 19, 2022

Emkay Global Financial’s report on ACC

Q1CY22 EBITDA declined 26% YoY/increased 14% QoQ to Rs6.3bn, marginally ahead of our estimates, led by better-than-expected realization. Blended EBITDA/ton fell 25% YoY/rose 12% QoQ to Rs812 (Emkay est.: Rs780). Ongoing expansion projects (2.7mt clinker and 3.2mt cement grinding) are delayed by a quarter. The expansion will increase ACC’s grinding capacity to 39mt (from ~36mt currently) by mid-CY23. Besides, management targets to meet ~25% of power requirements through WHRS by CY25E.

Outlook

We maintain our estimates with an unchanged TP of Rs2,425 (Mar’23). Our DCF-based TP implies a 1-year forward EV/EBITDA of 10.5x. Maintain Buy.

More Info

At 12:53 hrs ACC was quoting at Rs 2,205.80, up Rs 147.90, or 7.19 percent.

It has touched an intraday high of Rs 2,210.80 and an intraday low of Rs 2,063.00.

It was trading with volumes of 71,107 shares, compared to its thirty day average of 18,172 shares, an increase of 291.30 percent.

In the previous trading session, the share closed down 4.44 percent or Rs 95.65 at Rs 2,057.90.

The share touched its 52-week high Rs 2,587.95 and 52-week low Rs 1,784.15 on 15 November, 2021 and 22 April, 2021, respectively.

Currently, it is trading 14.77 percent below its 52-week high and 23.63 percent above its 52-week low.

Market capitalisation stands at Rs 41,422.11 crore.

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