ACC Ltd.

NSE: ACC | BSE: 500410 | ISIN: INE012A01025 | Industry: Cement & Cement Products
| Mid-range Performer

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ACC Ltd.
16 Oct 2019
1879.10
1.13%
HDFC Securities
We estimate ACC to deliver 10/16% EBITDA/PAT CAGR during CY18-21E. Given ACC's healthy cash flow and RoE, and its major expansion plans (20% capacity increase by end CY21E/early CY21E), current valuation (of 8.8/8.2x its CY20/21E EBITDA, EV/T of USD 115) looks inexpensive. We reiterate BUY with a TP of Rs 1,940 (ascribing 11x to its Jun-21E EBITDA and 0.5x to its CY20E CWIP). Key risks: Sharp roll back in cement prices, continued demand sluggishness, rebound in energy costs. We reiterate BUY on ACC with TP of Rs 1,940 (11x its Jun-21E consolidated EBITDA and 0.5x its CY20E CWIP). ACC delivered strong performance in 3QCY19, aided by both pricing and cost tailwinds despite subdued demand.
ACC Ltd. is trading above its 100 day SMA of 1875.7
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