ACC Limited
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.
Key Business segments
1. Cement (94% in FY24 vs 91% in CY19)
2. Ready Mix Concrete-RMC (6% in FY24 vs 9% in CY19)
Sector Wise Revenue Mix FY24
- Retail: 72%
- Wholesale: 28%
Shareholding Pattern
-PUBLIC GROUP
-PROMOTER GROUP
Financial Summary
| Particulars | Mar-23 | Mar-24 | Mar-25 |
| Sales | 22,210 | 19,959 | 21,762 |
| Sales Growth % | -10.14% | 9.04% | |
| Expenses | 20,285 | 16,897 | 18,701 |
| Operating Profit | 1,925 | 3,062 | 3,061 |
| OPM % | 9% | 15% | 14% |
| Net Profit | 885 | 2,335 | 2,402 |
| EPS in Rs | 47.13 | 124.34 | 127.92 |
Synopsis of Financials
Q4FY25 and FY25 Financials
- Q4FY25: Revenue of ₹9,889 crore (+11% YoY), EBITDA ₹1,868 crore (margin ~19%, ₹1,001/ton), operational cost ₹4,104/ton (down from ₹4,250+), cash & equivalents at ₹10,125 crore.
- FY25: Revenue ₹35,045 crore (highest ever), EBITDA ₹5,971 crore, EBITDA/ton ₹915. Net worth at ~₹64,000 crore (up from ₹50,000 crore YoY), debt-free, highest credit rating in the sector.
Cost Leadership Initiatives
- Targeting operational cost of ₹3,650/ton by FY28 (from ~₹4,250/ton in Sep’22). Already achieved ₹150–175/ton reduction; balance ₹300–325/ton expected over FY26–28.
Final Outlook
ACC is the most efficient and profitable company among its major competitors.
Its operational performance is industry-leading, with the best ROCE and inventory management.
While there’s a slight increase in cash conversion and working capital days, these are not concerning compared to peers.
The rising costs, margin pressure, and sectoral overcapacity are weighing on profits.
The company’s stock has underperformed and is likely to remain range-bound in the near term.
Competitive and operational challenges, including high costs and weaker branding, limit near-term upside.There are no major red flags for a sell, but the current risk/reward does not support a fresh buy either.
If you already own ACC, HOLD your position for now. The company’s fundamentals are strong, and it remains well-placed for long-term growth. Consider accumulating more only on significant price dips or if you have a long-term investment horizon.
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