Volume growth lags industry: ACC’s 2QCY16 volumes fell 1.2% YoY to 6.12mt, led by muted demand in some regions. While 2Q cement realizations were up 2.3% QoQ (-3% YoY), spot prices remain higher than the 2Q average, aiding visibility of QoQ uptick. Prices improved in the north and east, but remained stable in the south. Revenues stood at INR28.7b (-3.1% YoY), comprising cement revenues of INR26.1b (-1.6% YoY) and RMC revenues of INR2.6b (-6% YoY, volume up 9% YoY).Motilal Oswal remain Neutral on the stock. ACC is the most sensitive large cap play on price recovery due to its comparatively weak cost structure. Improvement in industry pricing dynamics would be a trigger for rerating. We cut CY16E/CY17E EPS by 6%/7% and volumes by 2.3%/1.4%. We value ACC at INR1,833 (13x CY17E EBITDA, USD146/ton).Trendlyne has 17 reports on ACC updated in the last year from 7 brokers with an average target of Rs 1580.7. Brokers have a rating for ACC with 1 downgrade,3 price downgrades,2 upgrades,6 price upgrades in past 6 months and 5 price downgrades in past 1 Year.