ACC’s shares traded muted on July 30, following the company’s quarterly results for the April to June 2024 period. In the first quarter of FY25, ACC reported a 23% year-on-year decline in net profit, which also fell short of street estimates.
Brokerages on ACC Cement
Morgan Stanley on ACC
Morgan Stanley has issued an equal-weight call on ACC Cement with a target price of Rs 2,930. Key takeaways from Q1 include a 9% year-over-year increase in volumes (cement and clinker), which was significantly higher than the estimated 4% growth.
However, realizations were weaker, moderating by 3.1% quarter-over-quarter compared to the forecasted 1.5% sequential moderation. Fuel costs were better than expected, but the benefits were broadly offset by higher raw materials and ‘other’ costs.
Jefferies on ACC
Jefferies has issued a buy call on ACC Cement with a target price of Rs 3,045. The report notes that Q1 earnings data showed EBITDA in line with expectations, and volumes grew 9% year-over-year, beating forecasts. However, realizations were down 3% quarter-over-quarter, compared to the estimated 2-2.5% decline.
Profit after tax (PAT) stood at Rs 360 crore, lower than the estimated Rs 380 crore and down 22% year-over-year due to higher depreciation. The company’s cash position declined due to opportunistic purchases of input materials (raw materials and fuel) and capital expenditures.
Nomura on ACC
Nomura has issued a reduce rating on ACC Cement with a target price of Rs 2,200. The report highlights that Q1 showed strong volume growth, delivering a marginal beat on EBITDA. Volumes grew 9% year-over-year to 10.2 million tons, surpassing estimates by 5%.
This growth is attributed to a higher share of volumes under Master Supply Agreements (MSAs). The blended EBITDA per ton stood at Rs 664, which was in line with expectations.
CLSA on ACC
CLSA has maintained a hold rating on ACC Cement with a target price of Rs 2,730. The report notes that Q1 EBITDA of Rs 6.8 billion, down 12% year-over-year, was largely in line with expectations as higher volumes offset weak profitability.
Volumes grew 9% year-over-year to 10.2 million tons, while realizations fell 3% quarter-over-quarter, matching estimates.
ACC Cement share performance in last one year
The shares of Tata Motors have demonstrated mixed returns across various time intervals. In the last month, the stock delivered a negative return of 5.79%. Over the past six months, it exhibited strong momentum with returns of 2.94%, indicating a robust performance.
Year-to-date figures further emphasized the stock’s bullish trend, recording an impressive growth of 15.27%. Looking at the broader horizon, the shares have shown consistent strength, given returns of over 28.15% in the last year.
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