ACC Ltd
Stock Snapshot
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
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 |
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.