Key cement player ACC is in focus after its earnings announcement. Key brokerages have, however, trimmed their target price on the shares, and some prefer Ambuja Cements over ACC. The stock has corrected nearly 10% in the last 5 days. Here are some key brokerage views to help you decide whether to Buy, Sell or Hold.
Nuvama sees over 20% upside in ACC
The brokerage house Nuvama Institutional Equities maintained a ‘Buy’ call on ACC, but slightly trimmed the target price by 3.3% to Rs 2,381 from Rs 2,462.
Nuvama retained its rating as the cement company’s Q4FY25 volume rose 14% year-on-year (up 11% sequentially) while realisation improved 2% quarter-on-quarter due to improved volumes and pricing industry-wide. This further resulted in EBITDA beating the broker’s estimates by 7%.
“Overall, EBITDA/t stood at Rs 673 (down ~16% YoY/up ~52% QoQ) versus Rs 442 in Q3FY25 and Rs 805 in Q4FY24. Premium product volumes rose 7% YoY (41% of trade share). Blended cement constituted 85% of the product mix,” said Nuvama.
Talking about the expansion, the commissioning of two new grinding units (GUs) at Sindri and Salai Banwa is delayed by a quarter and is likely to be commissioned by Q1FY26 or Q2FY26. The company’s management has deployed Rs 690 crore for land acquisition, closer to the Chanda plant in the Western region. This will be used for the purpose of setting up the grinding unit, limestone blocks and coal mines.
JM Financial on ACC
Improving the pricing scenario could be more than offset by higher margin dilution from rising MSA (Master Supply Agreements) volumes. “Hence, we have cut our EBITDA estimates by 3% for FY26-FY27 and revised down our March FY26 target price to Rs 2,150 (earlier Rs 2,250) based on 10x FY27E EV/E,” said the broker. JM Financial maintained its Buy call on the stock as it finds the valuation reasonable. However, within the group, it prefers Ambuja Cements over ACC, given higher growth visibility.
ACC Q4 result
The cement maker posted a decline of 20.4% YoY in its consolidated net profit for Q4FY25, standing at Rs 751.03 crore compared with Rs 943.4 crore in the same period a year ago. On a quarter-on-quarter basis, the consolidated net profit was down 31.2%. The company’s revenue from operations in Q4FY25 stood at Rs 5,991.67 crore, an increase of 12.7% from Rs 5,316.75 crore in the recorded in the corresponding period of the last financial year. Apart from ACC, you can check the list of other cement stocks.
About ACC
ACC is a subsidiary of Ambuja Cements. Adani Group acquired the stake of Holcim in ACC (along with Ambuja Cements) in 2022. Karan Adani serves as the Chairman of the cement company.