ACC Ltd
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
ACC Ltd. is currently navigating a challenging landscape characterized by margin compression and stagnating volume growth, as highlighted by management's cautious outlook. The company faces significant input cost pressures, particularly from global fuel and freight volatility, which are impacting profitability. Despite these headwinds, ACC is pursuing strategic capacity expansions and operational efficiencies through its 'One Cement Platform.' The anticipated merger with Ambuja Cements is expected to enhance long-term value, although execution risks remain in the near term. Vista's financial outlook reflects expectations of revenue contraction and continued margin pressure, with a target price of INR 2,090.69 for the next 12 months. The cement industry is experiencing a recovery in demand driven by infrastructure investments, but competitive pricing pressures and rising costs pose challenges. Over the next 12-24 months, key opportunities include successful capacity ramp-up and operational efficiencies, while watchpoints include persistent demand weakness and volatile input costs
Why We Like This Stock
- Strategic capacity expansions and operational efficiencies are being prioritized to mitigate cost pressures
- The merger with Ambuja Cements is expected to unlock long-term synergies and enhance market positioning
- The cement industry is poised for growth driven by ongoing infrastructure investments
Things To Watch Out For
- Margin compression and volume growth stagnation are significant near-term challenges
- Input cost pressures from global fuel and freight volatility are impacting profitability
- Execution risks related to the merger with Ambuja Cements and demand weakness could hinder performance
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 19,959 | 21,762 | 25,962 | 23,418 | 25,452 |
| Profit Before Tax (Cr.) | 2,521 | 3,004 | 2,129 | 1,153 | 1,650 |
| PBT Margin | 12.6% | 13.8% | 820.0% | 4.9% | 6.5% |
| Net Profit (Cr.) | 2,026 | 2,337 | 1,521 | 825 | 1,180 |
| Earnings Per Share | 107.8 | 124.3 | 80.9 | 43.9 | 62.8 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| BOB Capital Markets | ► Hold | 1,595 | 05-May-2026 |
| CLSA | ▲ Buy | 1,600 | 27-Jul-2026 |
| Choice Equity | ▲ Buy | 1,810 | 05-May-2026 |
| Citigroup | ► Neutral | 1,525 | 27-Jul-2026 |
| Deven Choksey | ▼ Reduce | 1,341 | 28-Jul-2026 |
| Elara Capital | ► Accumulate | 1,619 | 30-Jul-2026 |
| Emkay Global | ▼ Reduce | 1,200 | 21-Apr-2026 |
| Goldman Sachs | ▼ Reduce | 1,340 | 25-Jun-2026 |
| Motilal Oswal | ► Neutral | 1,270 | 27-Jul-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.