ACC Ltd., incorporated in the year 1936, is a Large Cap company (having a market cap of Rs 29681.65 Crore) operating in Cement sector.
For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 3467.50 Crore, up 37.58 % from last quarter Sales of Rs 2520.30 Crore and up .09 % from last year same quarter Sales of Rs 3464.43 Crore Company reported net profit after tax of Rs 363.25 Crore in latest quarter.
The brokerage believes that valuations are attractive at 8.8x/8.1x CY21E EV/EBITDA and US$95 EV/ton. ACC has traded at an average EV/EBITDA of 11.6x and EV/ton of US$122 between CY07 and CY20. It maintains Buy with a TP of Rs 1,774 (9.5x CY22E EV/EBITDA). Key downside risks include lower-than-estimated cement demand growth, which in turn, may impact prices.
Promoters held 54.5 per cent stake in the company as of Sept 30, 2020 while FIIs held 6.7 per cent, DIIs 25.5 per cent and public and others 13.3 per cent.