Buy ACC, target price Rs 2566: Centrum Broking

Centrum Broking has buy call on ACC with a target price of Rs 2566. The current market price of ACC Ltd. is Rs 2398.5. Time period given by analyst is one year when ACC Ltd. price can reach defined target.

ACC Ltd., incorporated in the year 1936, is a Large Cap company (having a market cap of Rs 45041.71 Crore) operating in Cement sector.

ACC Ltd. 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 30-06-2022, the company reported a Consolidated Total Income of Rs 4522.28 Crore, up .83 % from last quarter Total Income of Rs 4485.01 Crore and up 15.06 % from last year same quarter Total Income of Rs 3930.49 Crore. Company reported net profit after tax of Rs 223.00 Crore in latest quarter.

Investment Rationale
The brokerage expects continued capacity expansion in next 5 years with Adani group coming in. With possibility of merging with ACEM, operating efficiencies can be achieved. It recommends BUY, with a target price of Rs2,566, based on 13x CY23E EV/EBITDA. It trades at EV/t of USD143.

Promoter/FII Holdings
Promoters held 54.53 per cent stake in the company as of 30-Jun-2022, while FIIs owned 22.63 per cent, DIIs 10.15 per cent.