'Buy' ACC Shares Maintains Systematix Post Q1 Results, Revises Target Price — Here's Why 

ACC’s top line for the quarter was above our expectations while Ebitda/PAT missed estimates on account of higher-than-expected operating costs. Standalone Revenue was up 17.7% YoY (+0.2% QoQ) to Rs 60.7 billion above our estimate of Rs 56 billion, backed by robust volume growth as well as stronger realization.

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Systematix Report

ACC Ltd.’s strengthened presence in the Southern market, supported by the acquisition of Penna Cement, is expected to drive volume growth. With a sharp recovery in prices in the region during Q1, this strong foothold in the South is likely to help the company sustain realizations.

Additionally, ACC’s continued focus on cost excellence remains value accretive.

The stock is trading at one-year forward EV/Ebitda of 9.6/7.9x on FY26E/FY27E. We have revised our target price to Rs 2,200.

We believe that a meaningful improvement in operating efficiency, supported by leveraging group synergies, will aid margin expansion going forward. We value ACC at 10x FY27E EV/Ebitda and maintain our Buy rating on the stock.

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