ACC Q2 Results Review - Profitability To Improve; Attractive Valuation: Dolat Capital

"BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.ACC Ltd. Q2 FY24 reported volume, revenue in line, however realisation, Ebitda, Ebitda/tonne were below estimates, whereas adjusted profit after tax above estimates. ACC posted +11.2% YoY revenue to Rs 44.3 billion (-14.7% QoQ) led by +17.3% YoY/ -13.9% QoQ in volume to 8.1 million tonne which was partially offset by -3.3% YoY/ -1% QoQ in realisation to Rs 5,096. ACC's Ebitda +3,253.4% YoY/ -28.7% QoQ to Rs 5.5 billion. Adjusted profit after tax sharply increased YoY to Rs 3.9 billion versus net loss of Rs 711 million YoY led by better operating performance coupled with higher other income. We expect -0.1%/ +23.1%/ +26.3% revenue/ Ebitda/adjusted profit after tax compound annual growth rate over FY23- FY26E led by -7.4% (+16.2% on like-to-like basis)/ +6.0%/ +5.0% volume growth and -2.3%/ 0.0%/ 0.0% cement realisation growth in FY24E/ FY25E/ FY26E. We maintain Ebitda estimates for FY24E/ FY25E and introduce FY26E. As we roll over to FY26 coupled with improvement in profitability, we upgrade from 'Accumulate' to 'Buy' with a revised target profit of Rs 2,457 based on 11 times (~35% discount to 5/ 10 year average) consolidated FY26E enterprise value/Ebitda..Click on the attachment to read the full report:.ACC Q2 Results: Profit Beats Estimates.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

ACC Q2 Results Review - Profitability To Improve; Attractive Valuation: Dolat Capital

Ametha integrated unit has been commissioned in Q2 FY24 increasing ACC’s cement/ clinker capacity by 1mtpa/ 3.3 mtpa.

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP

ACC Q2 Results Review - Profitability To Improve; Attractive Valuation: Dolat Capital

Ametha integrated unit has been commissioned in Q2 FY24 increasing ACC’s cement/ clinker capacity by 1mtpa/ 3.3 mtpa.

Choose a plan

Follow Us

DOWNLOAD THE APP