ACC Ltd., incorporated in the year 1936, is a Large Cap company (having a market cap of Rs 29948.31 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 increases revenue/ EBITDA/ PAT estimates by 3.8%/ 8.6%/ 7.4% for CY20E. It broadly maintain CY21E estimates and introduce CY22E. Considering ACC’s healthy cash flow & RoE, net cash position, and 5.9mtpa (17.7% increase) capacity expansion, current valuation of 10.3x/ 8.7x/ 7.3x CY20E/ CY21E/ CY22E EV/EBITDA provides comfort which is 23%/ 35%/ 38% discount to 1yr Fwd EV/EBITDA of 3/ 5/ 10 years. Thus, it maintains BUY with an upward revised TP of Rs1,966 (10x Sept’22E EV/EBITDA).
Promoters held 54.5 per cent stake in the company as of Sept 30, 2020, while FIIs held 6.6 per cent, DIIs 25.6 per cent and public and others 13.3 per cent