ACC - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.6

Here’s a comprehensive analysis of ACC Ltd. based on the provided financial data and broader industry context

📊 Core Financial Health

Profitability & Returns

ROE: 13.2% and ROCE: 17.4% — solid, though not top-tier in the cement industry.

EPS: ₹129 — reasonably strong compared to the current market price.

Quarterly PAT fell from ₹644 Cr to ₹375 Cr — a notable decline, though Qtr Profit Var +4.36% suggests stabilization.

Debt & Liquidity

Debt-to-equity ratio: 0.02 — virtually debt-free, which is excellent for long-term stability.

Dividend yield: 0.41% — minimal income generation, typical for a growth-oriented play.

💸 Valuation Indicators

Metric Value Commentary

P/E Ratio 14.7 Attractive vs. industry PE of 51.1 — may be undervalued

P/B Ratio ~1.85 Fair, given Book Value ₹988

PEG Ratio 2.22 Indicates earnings growth may be overpriced

Intrinsic Value ❌ Likely lower than CMP Fundamentals justify caution

🧠 Business Model & Edge

ACC is a key player in India’s cement sector with strong distribution and brand recognition.

Low leverage and consistent earnings give it resilience during cyclical downturns.

However, declines in both FII (-0.17%) and DII (-0.79%) holdings suggest institutional caution.

📉 Technical Signals

RSI at 28.8 — deeply oversold; could be signaling rebound potential.

MACD at -14.2 — bearish momentum still in play.

Current Price ₹1,827 is below both DMA 50 & DMA 200 — signals technical weakness.

📍 Suggested Entry Zone & Holding Strategy

Entry Zone: ₹1,775–₹1,850 — near 52W low and RSI floor.

For long-term investors, this could be a good accumulation zone if recovery in PAT and sector tailwinds continue.

Monitor cost inflation and infrastructure demand closely as catalysts for future growth.

Want to explore how ACC stacks up against UltraTech or Shree Cement? I can map competitive metrics or build you a sector watchlist. 📋🏗️

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