ACC - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.9

Here’s a detailed analysis of ACC Ltd

🧾 Core Financials

Revenue & Profit Trends

Quarterly PAT dropped from ₹628 Cr to ₹384 Cr — a 4.99% decline, indicating margin pressure.

EPS of ₹130 is solid, but growth is tapering.

Profitability Ratios

ROCE: 17.6% and ROE: 13.4% — decent but not industry-leading.

Dividend Yield: 0.40% — modest income return.

Debt & Liquidity

Debt-to-equity: 0.02 — virtually debt-free, a strong financial position.

Cash flows are likely stable given low leverage and consistent earnings.

📊 Valuation Indicators

Metric Value Industry Avg Remarks

P/E Ratio 15.0 47.3 Undervalued vs peers

P/B Ratio ~1.91 ~3.5 Reasonable book premium

PEG Ratio 2.19 ~1 Price not aligned with growth

Intrinsic Value ~₹1,950–₹2,100 — Near fair value

ACC appears undervalued on P/E and P/B, but PEG suggests limited growth upside.

🏢 Business Model & Competitive Edge

Core Operations: Cement and ready-mix concrete.

Strengths

Strong brand with pan-India presence.

Operational efficiency and low debt.

Risks

Sluggish profit growth and declining institutional interest (FII/DII outflows).

Cyclical industry tied to infrastructure and real estate demand.

📉 Technical & Entry Zone

Current Price: ₹1,860

DMA 50/200: ₹1,853 / ₹1,963 — trading near short-term support.

RSI: 55.7 — neutral zone.

MACD: 4.93 — mild bullish momentum.

Suggested Entry Zone: ₹1,775–₹1,850 range, ideally near ₹1,775 support.

🕰️ Long-Term Holding Guidance

Hold if already invested, especially for value exposure.

Good for fresh entry if price dips below ₹1,800.

Ideal for long-term only if

Infrastructure demand picks up.

Profit margins improve and PEG normalizes below 1.5.

Would you like a comparison with UltraTech Cement or a sector outlook for Indian infrastructure plays?

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