DINESH

ACC Ltd

Latest CMP 1,321
Today's Change ▼ -0.25%
52-Week High / Low 1,903 | 1,247
Price Date: 14-Aug-2026
Recommendation Sell
Target Price 1,236
Expected Upside -3.3%
Forecast Horizon 2 Years
Historical CAGR 4.8%
1,000 Invested 17-Aug-2006
Today's Value 2,563
Investment Period 20 Years

Stock Snapshot

Post Results Return
-0.5%
Neutral Market Reaction
1-Year Target Price
990
2-Year Target Price
1,236
52-Week High / Low
1,903 / 1,247
20-Day Return
-4.3%
Market Cap (Cr.)
24,842
Current PE
16.8
P/BV Ratio
1.2
Dividend Yield
0.4%
Industry PE
41.2

Price Performance

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

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

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
Consensus Recommendation ► Hold
Consensus Target 1,463
Coverage 9 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.