The 22 reports from 9 analysts offering long term price targets
for ACC Ltd. have an average target of 2238.89. The consensus estimate
represents a downside of -6.48%
from the last price of 2394.00.
vaccination drives & increased government spending may trigger demand to recover rapidly. However, given the current scenario with sharpened fuel costs, we remain cautious on the stock & retain our HOLD with revised target price of Rs. 2,460 based on 11.0x CY22E EV/EBITDA. Topline impact less severe as compared to Q2CY20 For Q2CY21 revenue climbed 49.3% YoY to Rs. 3,885cr (-9.5% QoQ), with cement sales volume of 6.8mt (44.0% YoY). The Ready Mix Concrete business surged 309.9% YoY to Rs. 255cr (-29.1% QoQ) with RMX sales volume of 0.58m cubic meter (293.0% YoY)....
Expansion update and outlook: ACC expects to commission 2.7/1.0mn MT clinker/cement capacity by Q2CY22 and the remaining 2.6mn MT SGUs in UP by the end of CY22. These will drive volume CY23 onwards. Factoring in the robust cost control initiatives, we upgrade our consolidated EBITDA estimates for CY22/23/24E by 11/7/7% respectively. With increased visibility on its upcoming expansion and steady cost reduction-led margin improvement, we upgrade our valuation multiple to 12x its Jun'23E consolidated EBITDA (from 11x earlier). We reiterate BUY with a revised target price of INR 2,610/share. We reiterate our BUY rating on ACC with a revised target price of INR 2,610/share. In Q2CY22, ACC not only gained from healthy realisation across all markets, but also exhibited superior cost controls, which helped beat fuel and diesel price inflation, bolstering unitary EBITDA to a 12-year high of INR 1,235/MT (+10/20% YoY/QoQ). The company continues to focus on many cost reduction programs under the project Parvat, boosting the margin outlook. Its major expansion in the central region is expected to be commissioned between Q2 and Q4CY22, which bolsters the visibility on volume.
ACC has a strong balance-sheet with debt free status. However, it remains a laggard in terms of efficiency and operating margins vs. peer companies The ongoing capex of | 3500 crore would increase its capacity to 39.3 MT by H1CY22E. The 1.1 MT GU in Sindri has already been commissioned,...
ACC's 2QCY21 result surprised positively on strong cost control. Moreover, coupled with a better pricing environment, this led to EBITDA/t of INR1,279 the highest since CY10 despite higher energy costs. ACC's Central India expansion should be commissioned in 2HCY22, potentially driving a 9% volume CAGR over CY2123E. We expect costs to remain in check, supported by a master supply agreement (MSA) with Ambuja as well as supply chain efficiencies. We raise our CY21/CY22 EPS...
Even with strong balance sheet, cash flows, government spends, cost efficiency etc., recovery is skeptical with risk of rising fuel prices. Hence, we maintain cautious view on the stock and rate it a HOLD with a revised TP of Rs. 1,974 based on 8.7x CY22E EV/EBITDA. Topline backed by strong demand and volumes Q1CY21 revenue grew 22.6% YoY to Rs. 4,292cr (+3.6% QoQ), aided by strong volume growth in Cement at 21.6% YoY to 8.0MT (+3.4% QoQ) driven by robust demand. The Ready Mix Concrete business de-grew 7.7% YoY to Rs. 313cr (+59.2% QoQ) as sales...
ACC: During 1QCY21, ACC reported strong volume growth and all-round opex reduction. ACC's consolidated revenue/EBITDA/APAT grew by 4/23/25% QoQ (+23/47/74% YoY) to INR 42.9/8.6/5.6bn respectively. Unitary EBITDA firmed up 23% QoQ to INR 1,039/MT, led by lower input and employee costs. As ACC moved to the lower tax regime in 4QCY20, APAT grew 25% QoQ (+74% YoY). We maintain our BUY rating on the stock with an unchanged TP of INR 2,185/share (11x Mar'23 consolidated EBITDA). ICICI Prudential Life: While IPRU closed FY21 on a positive note (4QFY21 APE growth 14% ahead of expectations), FY21 APE clocked a 12.5% YoY decline. We like IPRUs re-engineered business model, which is focused on a more diversified product and channel mix, industry-leading share of protection (FY21: 13%) and rising share of traditional products (FY21: 34.8%). With the share of protection in the mix expected to moderate in FY22E/23E, we expect VNB margins to contract over FY22-23E to 24.7-24.9%. We expect VNB to grow at FY21-23E CAGR of 13%. We retain our ADD rating with an unchanged DCF-derived target price of Rs 575 (Mar-22 EV + 25.5x Mar-23E VNB). The stock is currently trading at FY22/23E P/EV of 2.0/1.8x and P/VNB of 20.2/16x.
New capacities to help gain lost ground from CY22E onwards Over the past five years, ACC has lost market share to other large players with no major new capacities coming up during this period either through greenfield or M&A; route. While industry capacity grew at 7% CAGR, the company managed to increase its capacity from 30.5 MT to 33 MT i.e. at 2% CAGR. As a result, ACC's production share declined from 14% in FY14 to 11% in FY20. To address this growth concern, the company is increasing its capacity to 39.3 MT with total capex of ~| 3000 crore. This would be mainly...
ACC's 1QCY21 result surprised positively on strong cost control. EBITDA grew 47% YoY on 3% YoY decline in total cost/t driving EBITDA/t to INR1,078. ACC's Central India expansion is expected to get commissioned in 2HCY22, which we estimate would drive an 11% CAGR in volumes over CY2023E. We expect costs to remain in check, supported by a master supply agreement (MSA) with Ambuja as well as supply chain efficiencies. We raise CY21/CY22...
We initiate coverage on ACC Limited (ACC) with a BUY recommendation and a Target Price (TP) of Rs. 2100/share which implies an upside of 17% from the current levels.
Despite company's strong financial position, cash flows, increasing infrastructure projects, government spending etc., rising pet coke and oil prices will pose threat to its recovery. Hence, we maintain our HOLD...
New capacities to help gain lost ground from CY22E onwards In the past five years, ACC has lost market share to other large players with no major new capacities coming in place in this period either via greenfield or M&A; route. While industry capacity grew at CAGR of 7%, the company managed to increase its capacity from 30.5 MT to 33 MT at 2% CAGR. As a result, ACC's production share declined from 14% in FY14 to 11% in FY20. To address this growth concern, the company is adding 6.2 MT new cement capacities with capex of ~| 3000 crore. This would be mainly funded...
Oberoi Realty: ORL surprised positively as pre-sales volume recovered to 93% of 2QFY20 level. Booking value also rebounded to Rs 3.3bn during the quarter (vs 3.2bn in 2QFY20) on higher realization. We expect the momentum to continue for ORL, given the stamp duty cut, low-interest rate, strong brand recognition and market consolidation. Residential launches remain on track in Borivali, Goregaon and Thane. Besides, the company is mulling a platform to unlock value from existing commercial office space. We tweak our FY21/22/23 estimates by +2/-4/-3% and maintain BUY with a revised TP of Rs 497. ACC: During 3QCY20, ACC reported consolidated net sales/EBITDA/APAT growth of 0/21/20% YoY to Rs 35.37/6.71/3.64bn respectively (ahead of our estimates of Rs 34.52/5.71/2.98bn). Buoyancy in retail demand, lower fuel costs and continued cost controls boosted earnings rebound. The earning beat (vs our estimate) is on account of better than expected operating cost reduction. While we expect retail sales to accelerate further, non-trade should also recover going ahead, boosting volume outlook. We are also enthused by ACCs continued surprise on fixed cost controls, which is driving margin expansion. Subsequently, we upgrade estimates and maintain BUY with a higher target price of Rs 1,820/share (10x Sep22E consolidated EBITDA). L&T; Technology Services: We maintain REDUCE on L&T; Tech (LTTS), as valuations more than adequately factor in the recovery curve. 2Q print was slightly ahead of estimates, and the growth rebound (despite 3Q furlough uncertainty) is supported by a pick-up in deal activity (deal pipeline and wins higher by ~16% over the previous quarter). While LTTS...
