This Adani-backed cement firm fueled optimism on the Dalal Avenue after Motilal Oswal highlighted its bullishness on this inventory. On this article, we’ll attempt to perceive the rationale behind it.
With a market capitalisation of Rs 34,757.54 crores, the shares of ACC Ltd are at present buying and selling at Rs 1850.90 per share, down by 33 % from its 52-week excessive of Rs 2,844 per share. Within the final one 12 months, the inventory has plummeted by 24 %.
Motilal Oswal’s Rationale
It reported This fall FY25 EBITDA of Rs 800 crore with a 15% beat over estimates. Moreover, its adjusted PAT rose 4% YoY to Rs. 510 crore, beating estimates by 26%, and in addition the gross sales volumes rose 14% YoY to 11.9 million tons, exceeding expectations.
ACC has acquired land within the Western a part of India for strategic capability additions, together with grinding models and potential coal mine acquisitions. Its investments embrace Rs 750 crore in railway wagons (GCFC), Rs 500 crore in grinding models, and Waste Warmth Restoration Methods (WHRS) at Chanda and Wadi-2 line.
Including to its future, Motilal Oswal mentioned that its FY25- 27 EBITDA CAGR is estimated at 27%, and PAT CAGR at 30%. EBITDA per ton is predicted to rise from Rs 565 in FY25 to Rs 760 in FY27, and its quantity development is projected at 10% CAGR over FY25–FY27.
That’s the reason, Motilal Oswal mentioned that the inventory trades at 10x FY26E and 8x FY27E EV/EBITDA, which is taken into account cheap, and the valuation is predicated on 10x FY27E EV/EBITDA, leading to a goal value of Rs 2,400 signalling an upside of 29.66% from its present market value of Rs 1850.90.
Monetary Highlights
ACC reported a consolidated income of Rs 21,762 crores in FY25, up by 9 % from its FY24 income of Rs 19,959 crores. It elevated by 12.17 % YoY from 5,409 crores in This fall FY24 to six,067 crores in This fall FY25. Moreover, on a QoQ foundation, it rose by 2.36 % from 5,927 crores in Q3 FY25 to six,067 crores in This fall FY25.
It posted a web revenue of Rs 2,402 crores in FY25, up by 2.78 %, from its FY24 web revenue of Rs 2,337 crores. It declined by 20.37 % YoY from 943 crores in This fall FY24 to 751 crores in This fall FY25. Moreover, on a QoQ foundation, it declined by 31.23 % from 1,092 crores in Q3 FY25 to 751 crores in This fall FY25.
Written by Satyajeet Mukherjee
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