ACC Ltd. share price target

We have revised our estimates for FY26E/FY27E EBITDA by -2.3%/-6.1%, respectively, as we factor in more gradual normalization of the elevated cost structure.

ACC reduced its kiln fuel costs by 10% by optimising its fuel mix, using cheaper imported petcoke, and improving the coal supply chain and partnerships with other companies in the group. As a result, fuel cost per unit of energy decreased from...

We maintain our BUY rating on the stock.

ACC’s 1QFY26 EBITDA missed our estimate due to lower blended realization/t and higher opex/t. EBITDA increased ~14% YoY to INR7.7b (10% miss).

ACC reported weak operating performance in Q1FY26 despite strong volume growth and higher realizations. Volumes grew 12.7% YoY on higher trade volume aided by MSA and strong growth in premium products. Average cement NSR grew 4% QoQ led by price recovery in Southern and Eastern markets since Mar'25. EBITDA/t grew just 2% YoY affected by higher RM costs (purchase of finished goods up 79% YoY). Improved fuel mix, lower fuel prices, greater adoption of green energy (26%), and increased volumes led to a 24% YoY reduction in power and fuel costs; while shorter lead distances and a rise in...

Q4FY25 revenue grew 11% YoY as a strong volume of 14% was offset by 3% fall in realisation, on weak pricing in key operating regions

ACC reported robust operating performance in 4QFY25 aided by strong volume growth and improved NSR. Volumes grew 14% YoY to 11.9mt aided by higher trade volume and better growth in premium products (7% YoY). Average MSA and traded volumes, all other costs have been constrained. Optimization of the fuel basket, lower fuel costs, increased use of Green share, and higher volumes led to a 22% YoY decline in P&F costs. Reduction in lead distance and higher direct dispatch resulted in a 9% YoY decline in freight costs. Strong operating leverage contributed to an 18% YoY decline in Other Expenses. These...

We maintain our BUY rating on the stock.

We change our rating from HOLD to BUY on the recent correction in stock price.

We maintain our HOLD recommendation on the stock

Q1FY25 revenue stayed flat YoY as 8.5% uptick in volume was offset by realisation drop of 8.3%

We downgrade our recommendation on the stock from BUY to HOLD.

In current times of cement price weakness (hikes attempted in Apr’24 have not only reversed but prices have slipped further in May’24)

Q4 revenue growth of 13% YoY boosted by 22% uptick in volumes (unadjusted to MSA) while realisations moderated ~7%