ACC Ltd.

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

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ACC Ltd.
15 Oct 2019
1879.10
1.13%
Motilal Oswal
However, premium product volumes increased 8% YoY. However, blended EBITDA/t was up 28% YoY (-20% QoQ) to INR864 due to healthy realizations. Thus, EBITDA increased 26% YoY (-29% QoQ) to INR5.56b (in-line). RMX volume increased 11%; value-added solutions (VAS) volume too grew ACC has been working on improvement in supply chain efficiencies and product Increase in power & fuel cost was partly mitigated by fuel source mix Freight cost/t increased due to higher handling and warehouse cost Fixed cost and sales & general administration cost were lower than the previous The company achieved reduction in packing material on account of re- negotiation and PP granule price reduction. We value the stock at 10x Jun21E EV/EBITDA (30% discount to UTCEM) to arrive at a TP of INR1,900 (implied EV/tonne of USD120 on CY20). We value the stock at 10x Jun21E EV/EBITDA (30% discount to UTCEM) to arrive at a TP of INR1,900 (implied EV/tonne of USD120 on CY20).
ACC Ltd. is trading above its 100 day SMA of 1875.7
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