Buy ACC, target price Rs 2110: HDFC Securities

HDFC Securities has buy call on ACC with a target price of Rs 2110. The current market price of ACC is Rs 1750.1.

ACC, incorporated in the year 1936, is a Large Cap company (having a market cap of Rs 33125.67 Crore) operating in Cement sector.

ACC key Products/Revenue Segments include Cement, Ready Mix Concrete, Other Operating Revenue, Scrap for the year ending 31-Dec-2021.


Financials
For the quarter ended 31-03-2023, the company has reported a Consolidated Total Income of Rs 4910.06 Crore, up 7.26 % from last quarter Total Income of Rs 4577.64 Crore and up 9.48 % from last year same quarter Total Income of Rs 4485.01 Crore. Company has reported net profit after tax of Rs 233.57 Crore in latest quarter.

The company’s top management includes Mr.Sridhar Balakrishnan. Company has Deloitte Haskins & Sells LLP as its auditors. As on 31-03-2023, the company has a total of 19 Crore shares outstanding.

Investment Rationale
Weak pricing in south reduced the benefits of opex moderation. The long pending Ametha integrated plant is expected in Q2FY24E. The management is yet to announce major expansions in ACC. However, it is taking up various green energy initiatives which should drive margin expansion.

Promoter/FII Holdings
Promoters held 56.69 per cent stake in the company as of 31-Mar-2023, while FIIs owned 10.05 per cent, DIIs 19.42 per cent.