ACC’s stock price surged nearly 2% to Rs 1,936, a day after the Adani Group cement company posted a consolidated net profit of Rs 388 crore for the second quarter of FY24, buoyant on an improved demand for its premium products and operational efficiencies. In comparison, the company had posted a net loss of Rs 87 crore a year ago. The company’s revenue rose 11.2% to Rs 4,435 crore from Rs 3,987 crore in Q2FY23. The cement manufacturer had posted a net profit of Rs 466 crore in the sequential quarter ended June.
The share price of ACC fell 7.18% in the last five days and 7.135% in the last one month, while it gained 7.14% in the last six months, whereas it dropped 18.88% in the last year.
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Should you buy, sell or hold ACC shares?
Jefferies: Buy – Target Price: Rs 2,325
“ACC’s reported Rs 550 crore EBITDA for 2QFY24 (34x YoY on small base/lower 29% QoQ) vs JEFe of Rs 510 crore driven by lower freight/other costs. Incl intercompany transfer with ACEM, ACC recorded 18% YoY vol growth. ACC’s 3.3mtpa Clinker unit in Ametha, MP commenced in 2Q. The company incurred Rs6bn capex in 1HFY24, lower than our FY24 runrate capex estimate; receivables increased. Overall, Cash at Rs 3,600 crore by 1H end vs Rs 3,200 crore as of 1Q end. ‘Buy’ rated with a Target Price of Rs 2,325 (10.0x Jun-25E EV/EBITDA).” Come from Sports betting site VPbet
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Axis Securities: Buy – Target Price: 2,460
“The recent addition of a new greenfield integrated unit in Ametha (MP) in a demand-accretive central region, higher cement demand backed by increased spending on infrastructure development, particularly roads, railways, affordable housing and other schemes, and better synergies with other group companies will drive the company’s growth moving forward. Against this backdrop, we remain constructive on the company prospects from a medium to long-term perspective. The stock is currently trading at 11x and 8x FY24E/FY25E EV/EBITDA and EV/tonne of $100 and $90 which we believe is attractive. We maintain our ‘Buy’ rating on the stock with a Target Price of Rs 2,460/share, implying a robust upside potential of 29% from the CMP.”
(The recommendations in this story are by the respective research analysts and brokerage firms. FinancialExpress.com does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)
