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ACC - Fundamental Analysis: Financial Health & Valuation

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Rating: 3.2

Last Updated Time : 19 Mar 26, 07:09 pm

Fundamental Rating: 3.2

Stock Code ACC Market Cap 26,381 Cr. Current Price 1,404 ₹ High / Low 2,123 ₹
Stock P/E 10.4 Book Value 1,046 ₹ Dividend Yield 0.53 % ROCE 17.6 %
ROE 13.4 % Face Value 10.0 ₹ DMA 50 1,597 ₹ DMA 200 1,778 ₹
Chg in FII Hold 0.95 % Chg in DII Hold -1.18 % PAT Qtr 404 Cr. PAT Prev Qtr 1,112 Cr.
RSI 26.2 MACD -71.8 Volume 2,11,123 Avg Vol 1Wk 3,00,223
Low price 1,360 ₹ High price 2,123 ₹ PEG Ratio 1.53 Debt to equity 0.02
52w Index 5.78 % Qtr Profit Var -62.9 % EPS 148 ₹ Industry PE 27.6

📊 Core Financials

  • Profitability: PAT dropped from ₹1,112 Cr. to ₹404 Cr. (Qtr Profit Var: -62.9%)
  • Margins: ROCE at 17.6% and ROE at 13.4% show moderate efficiency
  • Debt: Very low debt-to-equity ratio (0.02) indicates strong balance sheet
  • Cash Flow: Positive EPS (₹148) supports long-term sustainability

💰 Valuation Indicators

  • P/E Ratio: 10.4 vs Industry PE of 27.6 → undervalued
  • P/B Ratio: Current Price ₹1,404 vs Book Value ₹1,046 → ~1.34x book
  • PEG Ratio: 1.53 → fairly priced growth
  • Intrinsic Value: Appears undervalued relative to industry peers

🏢 Business Model & Health

  • Market Cap: ₹26,381 Cr. reflects strong presence in cement sector
  • Dividend Yield: 0.53% provides modest shareholder return
  • Competitive Advantage: Established brand with wide distribution network
  • Overall Health: Solid fundamentals but recent profit decline raises caution

🎯 Entry Zone & Long-Term Guidance

  • Entry Zone: Attractive near ₹1,350–1,450 given undervaluation
  • Long-Term Holding: Suitable for long-term investors if earnings stabilize

✅ Positive

  • Low P/E ratio (10.4) compared to industry
  • Strong balance sheet with minimal debt (0.02)
  • Established brand and market presence

⚠️ Limitation

  • Quarterly profit dropped significantly (-62.9%)
  • ROE and ROCE moderate compared to peers
  • Stock trading below DMA levels (50DMA ₹1,597, 200DMA ₹1,778)

📉 Company Negative News

  • Quarterly PAT fell sharply to ₹404 Cr.
  • DII holding decreased (-1.18%)

📈 Company Positive News

  • FII holding increased (+0.95%)
  • Valuation metrics suggest undervaluation compared to industry

🏭 Industry

  • Industry PE: 27.6, much higher than ACC’s PE
  • Cement sector benefits from infrastructure and housing demand

🔎 Conclusion

ACC shows undervaluation compared to industry peers, supported by a strong balance sheet and established brand.

However, the sharp decline in quarterly profits raises caution.

For long-term investors, this stock offers potential if earnings stabilize, with entry around current levels being attractive.

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