NDTV Profit'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 NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
Our earnings forecast for ACC Ltd. appears largely immune to the current weakness (and uncertain outlook) on cement prices. Sustained cost efficiency (across fixed/variable cost), expected benefit from imminent rise in share of green power (both waste heat recovery system and solar power) and scope for a further rise in volume benefits (under master-supply-agreement with parent Ambuja Cement Ltd., as well as sister concern Sanghi Industries Ltd.) is at the heart of this conviction.
Factoring these in, we broadly retain Ebitda for FY25E, but we raise our FY26E Ebitda by ~9%. A strong balance sheet (current cash/share of ~ Rs 250 seen surging to ~ Rs 490 in FY26E) and healthy return on equity of ~14–15% are compelling investment arguments.
We continue to value ACC at 13 times FY26E enterprise value/Ebitda. Retain 'Buy'; target price revised to Rs 3,272 (from Rs 2,931).
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit 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 NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
