ACC - Investment Analysis: Buy Signal or Bull Trap?

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

Investment Rating: 3.9

🧱 Long-Term Investment Analysis: ACC Ltd.

ACC Ltd., a major player in the cement industry, offers a solid foundation for long-term investment with its strong balance sheet and reasonable valuation. However, growth momentum and institutional sentiment appear muted, warranting a cautious approach.

📊 Financial & Valuation Snapshot

Metric Value Interpretation

Market Cap ₹34,913 Cr Mid-cap, stable

Current Price ₹1,860 Near 50DMA (₹1,853)

P/E Ratio 15.0 vs Industry PE 47.3 Undervalued

PEG Ratio 2.19 Overpriced relative to growth

Book Value ₹973 P/B ~1.91x → Reasonable valuation

ROE / ROCE 13.4% / 17.6% Moderate capital efficiency

Dividend Yield 0.40% Low income generation

Debt-to-Equity 0.02 Virtually debt-free

EPS (TTM) ₹130 Strong earnings base

Quarterly PAT Growth +4.99% Flat performance

📈 Technical & Trend Indicators

RSI: 55.7 → Neutral zone

MACD: Positive → Mild bullish momentum

Volume: Slightly above average → Steady interest

DMA 50/200: ₹1,853 / ₹1,963 → Price near short-term support

🧾 Institutional Sentiment

FII Holding: -0.17% → Mild caution

DII Holding: -0.79% → Weak domestic conviction

🎯 Ideal Entry Price Zone

Suggested Buy Range: ₹1,775–₹1,825

Near 52W low and below RSI 50

Offers better margin of safety and aligns with support levels

🛫 Exit Strategy & Holding Period

If You Already Hold

Holding Period: 2–3 years to capture cyclical recovery and infrastructure tailwinds

Exit Triggers

Price exceeds ₹2,400 without earnings growth

ROE drops below 10% for 2+ quarters

PEG rises above 2.5 or P/E crosses 20

Institutional selling accelerates

If You’re a New Investor

Wait for RSI < 50 and price near ₹1,800

Monitor quarterly PAT and ROE trends

Look for MACD reversal and volume breakout

🧠 Summary

ACC Ltd. is a value-oriented pick in the cement sector with a strong balance sheet and reasonable valuation. While growth metrics are modest and institutional sentiment is lukewarm, its low debt and stable earnings make it a decent long-term hold for conservative investors.

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