Buy ACC, target price Rs 2580: Emkay Global

Emkay Global has buy call on with a target price of Rs 2580. The current market price of ACC is Rs 2244.05. Time period given by analyst is one year when ACC price can reach defined target.

ACC Ltd., incorporated in the year 1936, is a Large Cap company (having a market cap of Rs 40409.94 Crore) operating in Cement sector.

For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 3930.49 Crore, down -9.35 % from last quarter Total Income of Rs 4335.94 Crore and up 48.12 % from last year same quarter Total Income of Rs 2653.52 Crore. Company reported net profit after tax of Rs 566.18 Crore in latest quarter.

Investment Rationale
The brokerage revised Sep’22E TP (roll-over from Jun’22) of Rs 2,580 is backed by DCF analysis (11.25% WACC, 7.0% FCFF growth post FY26), and is 27% higher than Rs2,040 previously. Its TP implies 1-year forward EV/E of 11x vs 10.1x currently.

Promoter/FII Holdings
Promoters held 54.5 per cent stake in the company as of June 30, 2021, while FIIs held 13.7 per cent, DIIs 19.3 per cent and public & others 12.5 per cent.

(Disclaimer: Views and recommendations given in this section are the analysts’ own and do not represent those of Please consult your financial adviser before taking any position in the stock/s mentioned.

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