Motilal Oswal has given Buy recommendation for ACC recommended buy rating on the stock with a target price of Rs 2692 in its research report date with a target price of Rs. 2692 in its research report issued on Oct 19, 2021
Motilal Oswal’s research report on ACC
ACC’s 3QCY21 operating performance was marginally above our estimate, led by higher-than-estimated realization (down 2% QoQ v/s our estimate of a 3% decline). EBITDA stood at INR7.1b (est. INR6.9b). EBITDA/t stood at INR1,083 (est. INR1,021). Its expansion plans are largely on track. It is likely to commission clinker/grinding capacity of 2.7mtpa/2.6mtpa by 1HCY22E and additional grinding capacity of 2.2mtpa by 1HCY23E. This should drive 9% volume CAGR over CY20-23E. Cost saving efficiencies (Project Parvat) and master supply agreement (MSA) with ACEM are yielding results.
We maintain our CY21-23E EPS estimates and reiterate our Buy rating with a TP of INR2,692.