Prabhudas Lilladher has given Buy recommendation for ACC with a target price of Rs. 2370 in its research report issued on Feb 15, 2022

Prabhudas Lilladher’s research report on ACC

ACC posted weak set of Q4CY22 earnings. EBITDA came 16%/18% below our/consensus estimates at Rs5.56bn, down 21% YoY. While, fall in earnings and miss to estimates was relatively lower compared to peers due to better performance on cost. We cut our EBITDA estimates by 8%/6% for CY22e/CY23e to factor in lower realisations. ACC narrowed the gap on margins with peers over last couple of years on back of visible reduction in manufacturing costs and higher operational efficiencies under program ‘Parvat’, complemented by rationalisation of logistics costs through Master supply agreement (MSA) with Ambuja cement. Continued momentum on cost reduction and upcoming capacity addition of 5mnt in one of its most profitable region, Central region, would further strengthen its earnings quality and growth.

Outlook

Maintain BUY with TP of Rs2,370 (earlier Rs2,555), 12x EV/EBITDA of CY23e.

More Info on Trent

At 10:29 hrs ACC was quoting at Rs 2,176.15, up Rs 21.40, or 0.99 percent.

It has touched an intraday high of Rs 2,192.75 and an intraday low of Rs 2,159.60.

It was trading with volumes of 5,979 shares, compared to its thirty day average of 16,634 shares, a decrease of -64.06 percent.

In the previous trading session, the share closed down 4.21 percent or Rs 94.70 at Rs 2,154.75.

The share touched its 52-week high Rs 2,587.95 and 52-week low Rs 1,686.75 on 15 November, 2021 and 23 February, 2021, respectively.

Currently, it is trading 15.91 percent below its 52-week high and 29.01 percent above its 52-week low.

Market capitalisation stands at Rs 40,865.33 crore.

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