ACC Ltd. share price target

along with ACEM supported the margin trajectory. We have revised CY20/21E EBITDA estimate up by 9%/10% (exhibit 10). We have introduced CY22E, and on an unchanged EV/EBITDA multiple of 10x, retain BUY rating with revised TP of Rs1,879 (earlier 1,687). Company has net cash of Rs47bn which provides it with cushion to increase the...

Q2CY20 revenue fell 37.3% YoY, affected majorly due to a drop in cement volumes (-33.3% YoY) as nation-wide lockdown continues. Also, ready mix concrete volumes witnessed steep declines (-82.4% YoY)...

ACC Limited Q2CY20E got impacted due to nation-wide lockdown for the first month of April. Consolidated revenue stood at Rs 2,602 Cr, a decline of 37.3% YoY/25.7% QoQ, EBITDA stood at Rs 525 Cr, decreasing by 32.9% YoY/10.4% QoQ and PAT at Rs 271 Cr, down 40.5% YoY/16.1% QoQ. The sharp decline in revenue could be attributed to the nation-wide lockdown for the month of April and then a gradual but rather slow re-opening of the economy. The total sales of cement by volume decreased to 4.8 million tonne (down 34% YoY) and RMX volume declined to 0.15 million cubic...

Witnessed strong recovery in volumes in May and June 2020. ACC posted strong set of Q2CY20 earnings with 34%/21% beat on our/consensus PAT estimates. Higher than expected realisations and lower other expenses contributed to the beat. ACC delivered strong show on containing costs given its fixed cost heavy operations and high energy and RM costs. Company reduced power and fuel...

discretionary fixed cost. Led by lower other expenses, EBITDA/t improved QoQ and YoY to Rs1093/t. We have factored this in our CY20/CY21 estimate and EBITDA is increased by 9%/12%. On an unchanged CY21 EV/EBITDA multiple of 10x, we retain BUY rating with revised TP of Rs1,687. Company with net cash of Rs47bn provides it with cushion...

performance. On the back of strong pricing tailwinds especially for the Southern exposure of ACC and optimizationoffreightandmisc.expenses,companyposted an EBITDA of Rs 5.25 bn (32.9% y/y) 19%/9% above...

ACC posted -37.3%/ -32.9%/ -40.6% YoY de-growth in revenue/ EBITDA/ APAT to Rs26 bn/ Rs5.2 bn/ Rs2.7 bn in Q2CY20 due to 33.3% YoY volume de-growth which was partially offset by 0.6% YoY realization growth (+11.5% QoQ). We expect (-0.6%)/ 7.0%/ 11.5% revenue/ EBITDA/ APAT CAGR over CY19-21E led by -14.6%/ 12.3% volume growth and 3.0%/ 2.0% cement realization growth in CY20E/ CY21E. We broadly maintain our revenue estimates for CY20E and CY21E. We...