ACC Ltd.

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

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ACC Ltd.
31 Jan 2020
1879.10
1.13%
Motilal Oswal
31 January 2020 20.4 19.2 17.4 2.4 2.2 2.0 During CY06-16, ACC lost ~450bp in all-India volume market share from 12.6% in CY06 to 8.2% in CY16. While industry delivered volumes at 6.5% CAGR during this period, ACCs volumes witnessed meager 2.0% CAGR. The market share loss was due to (a) change in management, as Holcim acquired majority ownership in CY05, (b) lower capacity addition at 5% CAGR in CY06-15 (v/s 10% for the industry), and (c) rise of aggressive players like Shree, UltraTech and Dalmia Bharat. The sustained loss in market share led to underutilization of capacities, which impacted RoE of the company, resulting in significant valuation de- rating. Utilization declined to 72% in CY16 from 96% in CY06, while RoEs declined to 8% in CY16 from 40% in CY06.
ACC Ltd. is trading below its 150 day SMA of 1892.4
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