ACC - Investment Analysis

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

Investment Rating: 4.3

📊 Fundamental & Valuation Analysis

ACC Ltd, part of the Adani Group, is a leading cement manufacturer with a strong legacy and improving operational metrics. Here's how it stacks up

🔍 Key Metrics

Metric Value Interpretation

ROE 13.2% Decent, room for improvement

ROCE 17.4% Efficient capital use

PEG Ratio 1.18

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Fairly valued for growth

Dividend Yield 0.41% Low but consistent

Debt-to-Equity 0.02 Virtually debt-free

P/E Ratio ~14

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Attractive vs industry PE of ~51

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Price-to-Book ~1.83

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Reasonable valuation

📈 Growth & Profitability

EPS: ₹128

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— strong earnings base

PAT Growth: ₹375 Cr vs ₹644 Cr — recent dip, but YoY growth is solid

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Revenue: ₹21,762 Cr

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— consistent growth trajectory

Margins: Operating margin ~9.4%, profit margin ~10.7%

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📉 Technical & Trend Analysis

Current Price: ₹1,794

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RSI: 28.03

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— oversold zone, potential reversal

MACD: -14.2 — bearish momentum

DMA 50/200: ₹1,910 / ₹2,011

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— trading below both

Volume: Below average — weak buying interest

📌 Ideal Entry Price Zone

Support Levels: ₹1,775 and ₹1,740

Fair Entry Range: ₹1,750–₹1,820

Below ₹1,800 offers better margin of safety

Avoid entry above ₹2,000 unless trend reversal confirmed

🧭 Exit Strategy & Holding Period

If you already hold the stock

✅ Long-Term Holding Justified If

You seek stable returns with low debt exposure

You believe in India’s infrastructure boom and cement demand

You’re comfortable with moderate ROE and cyclical earnings

🚪 Exit Strategy

Short-Term Exit: If price rallies near ₹2,400–₹2,600 without earnings support

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Hold Period: 3–5 years to benefit from capacity expansion and margin recovery

Re-evaluate: If ROE drops below 10% or PAT growth stagnates for 2+ quarters

🧠 Final Verdict

ACC is a solid long-term candidate with improving fundamentals, attractive valuation, and strong backing from the Adani Group. While short-term sentiment is weak, the stock is trading near its 52-week low, offering a compelling entry point for patient investors.

Would you like a comparison with peers like Ultratech Cement or Dalmia Bharat to see how ACC stacks up in the cement sector?

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stockanalysis.com

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www.valueresearchonline.com

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stockanalysis.com

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bing.com

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futureshareprice.com

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