Buy ACC, target price Rs 2900: ICICI Direct

ICICI Direct has buy call on ACC with a target price of Rs 2900. The current market price of ACC is Rs 2385.4. Time period given by analyst is one year when its price can reach defined target.

ACC, incorporated in the year 1936, is a large cap company (having a market cap of Rs 44806.04 crore) operating in cement sector.

Its key products/revenue segments include cement, ready mix concrete, other operating revenue, scrap for the year ended December 31, 2021.


Financials
For the quarter ended June 30, 2022, the company has reported a consolidated total income of Rs 4522.28 crore, up 0.83 per cent from last quarter total income of Rs 4485.01 crore and up 15.06 per cent from last year same quarter total income of Rs 3930.49 crore. Company has reported net profit after tax of Rs 223 crore in latest quarter.

The company’s top management includes Mr.N S Sekhsaria, Mr.D Sundaram, Mr.Vinayak Chatterjee, Mr.Sunil Mehta, Mr.Shailesh Haribhakti, Ms.Falguni Nayar, Mr.M R Kumar, Mr.Neeraj Akhoury, Mr.Jan Jenisch, Mr.Martin Kriegner, Mr.Sridhar Balakrishnan, Mr.S K Roongta. Company has Deloitte Haskins & Sells LLP as its auditors. As on 30-06-2022, the company has a total of 19 Crore shares outstanding.

Investment rationale
Given the healthy outlook, new aggressive management & comfortable valuations post correction, the brokerage retains BUY rating. It values ACC at Rs 2,900 i.e.11.5x CY23E EV/EBITDA.

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.