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ACC - Technical Analysis with Chart Patterns & Indicators

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Rating: 2.9

Last Updated Time : 04 May 26, 11:56 am

Technical Rating: 2.9

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

📈 Chart Patterns & Trend: ACC is trading below both 50 DMA (₹1,468) and 200 DMA (₹1,687), reflecting weak momentum. RSI at 49.2 indicates neutral-to-weak bias, while MACD at -0.30 suggests bearish undertone. Bollinger Bands show narrowing, pointing to consolidation. Price action remains closer to support zones than highs, signaling caution.

🔑 Momentum Signals: RSI below 50 signals lack of strength. MACD negative confirms bearish bias. Volumes (1.87L) are in line with average (1.89L), showing no strong accumulation or distribution. Trendlines highlight support near ₹1,380 and resistance near ₹1,470.

🎯 Entry Zone: ₹1,370 – ₹1,400 (support levels)

💰 Exit Zone: ₹1,470 – ₹1,500 (resistance levels)

📊 Status: Consolidating with weak bias; reversal unlikely unless earnings stabilize and price breaks above DMA levels.

Positive

  • Attractive P/E (12.5) vs industry average (30.8)
  • Strong book value (₹1,087) supports valuation
  • Low debt-to-equity (0.02) ensures financial stability
  • Dividend yield at 0.53% provides income support

Limitation

  • Quarterly PAT dropped sharply (₹250 Cr vs ₹404 Cr, -60.2%)
  • Weak ROE (11.0%) and ROCE (11.4%)
  • Stock trading below both 50 DMA and 200 DMA
  • Neutral RSI and negative MACD indicate weak momentum

Company Negative News

  • FII holdings declined (-0.06%)
  • Sharp earnings contraction raises concerns

Company Positive News

  • DII holdings increased (+0.25%)
  • Valuation attractive compared to peers

Industry

  • Industry PE at 30.8 highlights sector premium vs ACC’s undervaluation
  • Cement sector showing moderate growth but margin pressures persist

Conclusion

⚠️ ACC is consolidating with weak technical momentum. Despite attractive valuations and strong book value, earnings contraction and weak ROE/ROCE weigh on sentiment. Best suited for cautious entries near ₹1,370–₹1,400 with profit-taking near ₹1,470–₹1,500. Sustained recovery requires earnings stabilization and price crossing above DMA levels.

Would you like me to layer in a peer comparison (ACC vs Ultratech, Shree Cement, Ambuja) so you can see how its undervaluation stacks against sector leaders?

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