DINESH

ACC Ltd

Latest CMP 1,204
Today's Change ▲ 0.12%
52-Week High / Low 1,903 | 1,203
Price Date: 30-Sep-2026
Recommendation Sell
Target Price 1,334
Expected Upside 5.3%
Forecast Horizon 2 Years
Historical CAGR 4.3%
1,000 Invested 01-Oct-2006
Today's Value 2,321
Investment Period 20 Years

Stock Snapshot

Post Results Return
-5.0%
Mild Negative Re-rating
1-Year Target Price
1,239
2-Year Target Price
1,334
52-Week High / Low
1,903 / 1,203
20-Day Return
-5.3%
Market Cap (Cr.)
22,637
Current PE
15.6
P/BV Ratio
1.1
Dividend Yield
0.4%
Industry PE
38.5

Price Performance

Vista Outlook

Basis of our Recommendation

ACC Ltd. is navigating a challenging landscape characterized by margin compression and stagnant volume growth, as highlighted by management's cautious outlook during recent earnings calls. The company's disciplined 'value-over-volume' strategy aims to enhance EBITDA per ton while integrating acquired assets and ramping up renewable energy capacity. Despite short-term headwinds from geopolitical fuel cost inflation and a weak pricing environment, management remains optimistic about long-term growth driven by India's infrastructure investments and the strategic merger with Ambuja Cements, which is expected to unlock operational efficiencies. Vista's forecast reflects anticipated revenue contraction and ongoing margin pressures, supported by the company's focus on cost mitigation and capacity expansion. The cement industry is experiencing a recovery phase, but rising input costs and competitive pricing pressures pose significant challenges. Over the next 12-24 months, key opportunities include the successful execution of the Ambuja merger and the potential for volume recovery post-monsoon, while watchpoints include persistent demand weakness and volatile fuel prices that could impact margins

👍 Why We Like This Stock

  • Management's focus on a disciplined 'value-over-volume' strategy aims to enhance profitability despite current challenges
  • The strategic merger with Ambuja Cements is expected to drive operational efficiencies and long-term value creation
  • Anticipated volume recovery post-monsoon could provide a boost to revenue in the latter half of the fiscal year

⚠ Things To Watch Out For

  • Ongoing margin pressures due to rising input costs and a weak pricing environment are expected to persist
  • Short-term revenue contraction is anticipated, reflecting a challenging demand landscape
  • Execution risks related to the integration of acquired assets and capacity expansions may hinder performance

Key Parameters

Balance Sheet Strength
Conservatively Financed
Market Share
Stable
Industry Outlook
Weakening
Analyst View
Hold
Dividend History
Consistent
FII Holdings
Stable

Financial Snapshot

View Technicals Analysis →
Actuals Forecast
FY24 FY25 FY26 FY27 FY28
Revenue (Cr.) 19,959 21,762 25,962 23,490 24,552
Profit Before Tax (Cr.) 2,521 3,004 2,129 1,783 1,912
PBT Margin 12.6% 13.8% 8.2% 7.6% 7.8%
Net Profit (Cr.) 2,026 2,337 1,521 1,275 1,368
Earnings Per Share 107.8 124.3 80.9 67.8 72.8

Analyst Recommendations

Broker Recommendation Target Price Date
Elara Capital ► Accumulate 1,619 30-Jul-2026
Nomura ▼ Reduce 1,150 30-Jul-2026
Deven Choksey ▼ Reduce 1,341 28-Jul-2026
CLSA ▲ Buy 1,600 27-Jul-2026
Citigroup ► Neutral 1,525 27-Jul-2026
Motilal Oswal ► Neutral 1,270 27-Jul-2026
Goldman Sachs ▼ Reduce 1,340 25-Jun-2026
BOB Capital Markets ► Hold 1,595 05-May-2026
Choice Equity ▲ Buy 1,810 05-May-2026
Emkay Global ▼ Reduce 1,200 21-Apr-2026
Consensus Recommendation ► Hold
Consensus Target 1,412
Coverage 10 Analysts
Analysts' Viewpoint
ACC Ltd is navigating near-term challenges of margin compression and stagnant volume growth due to elevated fuel costs and weak demand. The company's strategic initiatives, including capacity expansions at Salai Banwa and Kalamboli, and a focus on premium products, are designed to enhance operational efficiencies. The merger with Ambuja Cements is expected to drive long-term synergies, although execution risks and geopolitical uncertainties remain. Analysts highlight the potential for demand recovery post-monsoon and the benefits of increased green energy adoption.

Company Overview

Show Company Profile

ACC Limited engages in the manufacture and sale of cement and ready-mix concrete in India. It operates in Cement and ancilliary services and Ready Mix Concrete segments. The company provides range of cement; ready mixed concrete value-added products; and bulk cement. It also offers construction chemicals, such as ACC LeakBlock, an integral waterproofing compound used in concrete and plaster while constructing houses; ACC LeakBlock WaterProof Plaster - LB 101, a ready-to-use cementitious waterproof mortar for internal and external plaster applications; and tile adhesives under the ACC Xtra Strong brand used for wet-on-wet fixing of medium sized tiles for internal walls and floors, and external floor applications, as well as an adhesive paste for fixing tiles on floor and wall. In addition, the company provides ready-to-use and waterproof plasters, thin bed joining mortars, grey cement-based tile adhesives, and shrinkage compensated and flowable precision cementitious grout under ACC Suraksha brand; and EcoMaxx, a green concrete with lower embodied carbon footprint for various structural components, such as foundations, columns, beams, external or internal walls, driveways, walkways, etc. It distributes its products through a network of dealers, retailers, individual home builder, contractors, big housing contractors, infrastructure companies, and government department. The company was formerly known as The Associated Cement Companies Limited and changed its name to ACC Limited in September 2006. ACC Limited was incorporated in 1936 and is headquartered in Ahmedabad, India. ACC Limited operates as a subsidiary of Ambuja Cements Limited.