IIFL Securities's Stock Idea: Buy Acc with Target Rs 2665

On May 23, IIFL Securities recommended buying ACC shares at the current market price of Rs 2605.95. The brokerage firm has set a target price of Rs 2665 for the stock, indicating an upside potential of approximately 2.3%. The company's strong financial performance, including a 14.5% increase in net sales and a 44.2% surge in net profit in Q4 FY22, is cited as a key reason for the bullish outlook. IIFL Securities believes that ACC's focus on cost optimization and its low debt-to-equity ratio will drive further growth in the coming quarters.

About Acc:

ACC Limited (ACC), formerly known as Associated Cement Companies Limited, is a leading Indian cement manufacturer. It is a part of the Adani Group and was formerly a part of the Tata Group. The company has a strong presence in all regions of India and exports to over 30 countries. ACC's cement plants are spread across 17 states and have a total capacity of over 34 million tonnes per annum. The company offers a wide range of cement products, including Ordinary Portland Cement (OPC), Portland Slag Cement (PSC), Portland Pozzolana Cement (PPC), and white cement. ACC also produces ready-mix concrete, concrete blocks, and other building materials.

52 Week Price Trend:

ACC's current market price (CMP) of Rs. 2605.95 is within the range of its 52-week high and low prices. The stock has witnessed a 52-week high of Rs. 2759.95 and a low of Rs. 1592.35. This indicates that the stock has been trading within a relatively stable range over the past year. However, it is important to note that past performance does not guarantee future results, and investors should conduct thorough research before making any investment decisions.

Stratzy's MOST Analysis:

ACC's BB- rating from Stratzy's MOST framework indicates a medium fundamental risk. ACC's management, outlook, safety, and trend have been evaluated and deemed to have some weaknesses or concerns. This implies that investors should exercise caution when considering investing in ACC, as there may be potential for future challenges or underperformance.

Company's Fundamentals:

ACC (NSE:ACC) is a prominent cement producer listed on the National Stock Exchange (NSE) of India. The company's stock performance can be analyzed using various financial ratios. Its trailing twelve months (TTM) stock PE ratio of 30 indicates that investors are willing to pay 30 times its annual earnings per share for its stock. The PB ratio of 3.39 suggests that the company's market value is 3.39 times its book value, indicating a premium valuation. ACC's dividend yield of 0.35% implies that investors can expect a dividend of 0.35% of the current market price if the company maintains its current dividend policy. These ratios provide insights into the company's valuation, earnings quality, and dividend-paying capacity.

Fundamental and Technical information provided in this blog were last updated on 23 May, 2024

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