ICICI Securities has given Buy recommendation for ACC recommended buy rating on the stock with a target price of Rs 2710 in its research with a target price of Rs. 2710 in its research report issued on Jan 07, 2022

ICICI Securities research report on ACC

ACC has delivered 11% EBITDA/te CAGR over CY16-CY21E vs 7% for our 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, in our view. 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 EV/E seems attractive and below the long-term average of 11x. Valuation gap vs peers may also narrow with improving EBITDA/te.

Outlook

Maintain BUY with an unchanged target price of Rs2,710/share based on 11x CY23E EV/E.

More Info on Trent

At 13:30 hrs ACC was quoting at Rs 2,287.25, up Rs 60.95, or 2.74 percent.

It has touched an intraday high of Rs 2,288.75 and an intraday low of Rs 2,226.30.

It was trading with volumes of 13,869 shares, compared to its thirty day average of 12,677 shares, an increase of 9.41 percent.

In the previous trading session, the share closed down 0.65 percent or Rs 14.60 at Rs 2,226.30.

The share touched its 52-week high Rs 2,587.95 and 52-week low Rs 1,490.00 on 15 November, 2021 and 21 December, 2020, respectively.

Currently, it is trading 11.62 percent below its 52-week high and 53.51 percent above its 52-week low.

Market capitalisation stands at Rs 42,951.64 crore.

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