ACC LTD

ACC Limited (incorporated in 1936), a member of the Adani Group, is principally engaged in the business of manufacturing and selling of Cement and Ready Mix Concrete. The Company has manufacturing facilities across India and caters mainly to the domestic market.

Revenue Breakup

Cement– 94%

Ready Mix Concrete-6%

Shareholding Pattern

-PUBLIC GROUP

-PROMOTER GROUP

Financial Summary

Synopsis of Financials

• Revenue of Rs. 8,129 crores driven by micro market management strategy and expansion of dealer network
• Operational cost decline of 10% due to better fuel management and footprint optimization
• EBITDA growth of 70% at Rs. 1,732 crores and EBITDA per tonne at Rs. 1,225, a jump of 65%
• Revenue for the quarter was INR 7,424 crores, a YoY increase of 4.1%.
• Operational costs for the quarter decreased by 11.8% YoY, mainly due to lower energy costs and optimization of expenses.
• EBITDA excluding other income for the quarter was INR 1,302 crores, a YoY increase of 298%.

Final Outlook

• Company is virtually debt free.
• Company has a healthy Interest coverage ratio of 17.38.
• Company’s PEG ratio is 0.10.
• The company has an efficient Cash Conversion Cycle of -68.90 days.
• The company has a good cash flow management; CFO/PAT stands at 1.19
• The company has a high promoter holding of 56.69%.
• Company witnessed QoQ revenue growth of 37.79%, which is highest in the last 3 years.
• Acc is trading 0.38% upper at Rs 1,937.70 as compared to its last closing price. Acc has been trading in the price range of 1,954.00 & 1,923.00. Acc has given -5.93% in this year & 2.72% in the last 5 days. Acc has TTM P/E ratio 14.85 as compared to the sector P/E of 25.52.
• The company posted a net profit of 1,091.73 Crores in its last quarter.Listed peers of Acc include Shree Cement (1.13%), J.k. Cement (-0.34%), Acc (0.38%).

I would give Buy Recommendation for this stock.