ACC - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.4
| Stock Code | ACC | Market Cap | 26,705 Cr. | Current Price | 1,422 ₹ | High / Low | 2,029 ₹ |
| Stock P/E | 12.5 | Book Value | 1,087 ₹ | Dividend Yield | 0.53 % | ROCE | 11.4 % |
| ROE | 11.0 % | Face Value | 10.0 ₹ | DMA 50 | 1,468 ₹ | DMA 200 | 1,687 ₹ |
| Chg in FII Hold | -0.06 % | Chg in DII Hold | 0.25 % | PAT Qtr | 250 Cr. | PAT Prev Qtr | 404 Cr. |
| RSI | 49.2 | MACD | -0.30 | Volume | 1,87,324 | Avg Vol 1Wk | 1,89,052 |
| Low price | 1,250 ₹ | High price | 2,029 ₹ | PEG Ratio | 0.39 | Debt to equity | 0.02 |
| 52w Index | 22.1 % | Qtr Profit Var | -60.2 % | EPS | 122 ₹ | Industry PE | 30.8 |
📈 Positive
- Market capitalization of ₹26,705 Cr. provides scale in the cement sector.
- Attractive P/E ratio of 12.5 compared to industry average of 30.8, indicating undervaluation.
- Strong book value of ₹1,087 supports intrinsic worth.
- Low debt-to-equity ratio (0.02) reflects financial stability.
- Dividend yield of 0.53% offers modest income.
- EPS of ₹122 shows solid long-term earnings potential.
⚠️ Limitation
- ROE (11.0%) and ROCE (11.4%) are modest, reflecting average efficiency.
- Quarterly PAT dropped to ₹250 Cr. from ₹404 Cr., showing earnings pressure.
- Quarterly profit variation of -60.2% highlights volatility.
- RSI at 49.2 and MACD negative (-0.30) suggest weak momentum.
- Price trading below DMA 50 (₹1,468) and DMA 200 (₹1,687) indicates bearish trend.
- FII holdings slightly reduced (-0.06%), showing cautious foreign sentiment.
🚨 Company Negative News
- Sharp decline in quarterly profits raises concerns about demand and cost pressures.
- Weak momentum indicators suggest limited short-term upside.
🌟 Company Positive News
- DII holdings increased (+0.25%), reflecting domestic institutional confidence.
- Valuation remains attractive compared to industry peers.
- Strong balance sheet with minimal debt supports resilience.
🏭 Industry
- Industry P/E at 30.8 is significantly higher than ACC’s 12.5, highlighting undervaluation.
- Cement sector growth tied to infrastructure and housing demand, offering long-term potential.
- Competitive advantage lies in ACC’s established brand and distribution network.
📝 Conclusion
ACC is fundamentally undervalued with strong book value and low debt, but faces near-term earnings pressure and weak momentum.
🔑 **Entry Zone:** Attractive near ₹1,350–1,400 for accumulation.
📌 **Long-term Holding Guidance:** Suitable for medium-to-long-term investors (2–4 years). Consider partial profit booking near ₹1,800–2,000 if earnings recovery is slow.
This balances ACC’s undervaluation with its earnings volatility. Would you like me to also prepare a swing trade overlay with entry/exit levels and stop-loss guidance based on momentum indicators?