⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
ACC - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.4
| Stock Code | ACC | Market Cap | 31,365 Cr. | Current Price | 1,670 ₹ | High / Low | 2,123 ₹ |
| Stock P/E | 12.4 | Book Value | 1,046 ₹ | Dividend Yield | 0.45 % | ROCE | 17.6 % |
| ROE | 13.4 % | Face Value | 10.0 ₹ | DMA 50 | 1,740 ₹ | DMA 200 | 1,854 ₹ |
| Chg in FII Hold | 0.95 % | Chg in DII Hold | -1.18 % | PAT Qtr | 404 Cr. | PAT Prev Qtr | 1,112 Cr. |
| RSI | 42.6 | MACD | -30.0 | Volume | 2,50,911 | Avg Vol 1Wk | 2,49,285 |
| Low price | 1,593 ₹ | High price | 2,123 ₹ | PEG Ratio | 1.82 | Debt to equity | 0.02 |
| 52w Index | 14.5 % | Qtr Profit Var | -62.9 % | EPS | 148 ₹ | Industry PE | 30.6 |
📊 Core Financials
- Revenue & Profitability: PAT fell sharply from 1,112 Cr. to 404 Cr. (–62.9% variance), showing earnings volatility.
- Margins: ROE at 13.4% and ROCE at 17.6% are moderate, below industry leaders.
- Debt: Debt-to-equity ratio of 0.02 indicates negligible leverage, a strong balance sheet.
- Cash Flow: Profitability supports cash generation, but recent decline raises concerns.
💹 Valuation Indicators
- P/E Ratio: 12.4 vs. industry average of 30.6 — undervalued compared to peers.
- P/B Ratio: Current price (₹1,670) vs. book value (₹1,046) → ~1.6x, reasonable valuation.
- PEG Ratio: 1.82, suggesting growth is priced fairly.
- Intrinsic Value: Current valuation appears attractive given industry multiples.
🏢 Business Model & Competitive Advantage
- ACC is a leading cement manufacturer with strong brand recognition and distribution network.
- Competitive advantage lies in scale, established market presence, and operational efficiency.
📈 Technicals & Entry Zone
- DMA 50 (₹1,740) and DMA 200 (₹1,854) are above current price, indicating weakness.
- RSI at 42.6 suggests neutral-to-oversold momentum; MACD negative indicates bearish trend.
- Entry Zone: Attractive near ₹1,600–1,650 for long-term investors.
- Long-Term Holding: Suitable for patient investors; recovery depends on earnings stabilization.
✅ Positive
- Low debt-to-equity ratio (0.02).
- Undervalued compared to industry P/E (12.4 vs. 30.6).
- Strong brand and established market presence in cement industry.
⚠️ Limitation
- Quarterly profit decline (–62.9%) raises concerns.
- ROE and ROCE are moderate compared to peers.
- Dividend yield of 0.45% is low despite profitability.
📉 Company Negative News
- DII holdings decreased (–1.18%), showing reduced domestic institutional confidence.
- Weak technical indicators (MACD –30, RSI 42.6) suggest bearish sentiment.
📈 Company Positive News
- FII holdings increased (+0.95%), showing foreign investor confidence.
- Stock trading near 52-week low (₹1,593), offering potential value entry.
🏭 Industry
- Cement industry benefits from infrastructure growth and housing demand in India.
- Industry average P/E (30.6) highlights ACC’s undervaluation.
🔎 Conclusion
- ACC is financially stable with low debt and undervaluation compared to peers.
- Profit decline is a concern, but long-term industry demand supports recovery potential.
- Recommendation: Accumulate near ₹1,600–1,650 for long-term holding. Suitable for investors seeking value in the cement sector.