RESULTS TODAY: Expert says ACC price target is Rs 1948, stop-loss Rs 1750 -

RESULTS TODAY: Expert says ACC price target is Rs 1948, stop-loss Rs 1750

ACC Share price: Nirav Vakhariya, Head of Research at Share India shared his view on ACC. He said that after hitting a high of 2022, the stock witnessed a sharp profit booking at higher levels to test Rs 1820 levels. The entire rally from March lows of Rs 896 is a well channelled move, currently passing through Rs 1750 which ought to act as strong support. A bounce back will sustain if it crosses Rs 1948. Above that, near term target can be set at Rs 2150 – Rs 2200. Whereas a violation of Rs 1750 may invite more selling pressure and push the index further lower towards Rs 1700 – Rs 1600 range. ACC share price today is Rs 1842, down Rs 40 or 2.1%. ACC Share price has moved down from Rs 1886 to Rs 1842 in the last 1 week.

Motilal Oswal says that they expect momentum on ACC ahead of results today. They expect Net profit Rs 438cr (up 25.2% YoY), EBITDA at expectation Rs 723.8 cr, margin at 17.4%, Realization expectation Rs 4848/ton (up 4.5% YoY).

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ACC Background:

ACC is a leading player in Indian building materials space with a pan-India operating and marketing presence. It has 17 cement plants, 80 RMC (ready mixed concrete) plants, and a wide distribution network of 56000 channel partners.

ACC’s Management commentary:

Jefferies says that ACC Management’s Outlook is fairly positive as economic recovery is underway led by government focus on infra, particularly roads, railways, affordable housing etc. as announced in the union budget.

ACC in its Investors Presentation highlighted that the government’s vision of “Housing for all by 2022” is expected to create lucrative opportunities for ACC. In 2020, around 586.05 lakh tonnes of cement were used at the start of construction work. Demand for affordable homes is set to stay healthy, supported by a growing population, young demographic profile, shift towards nuclear families and rapid urbanization.


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