BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
ACC Ltd’s positive Q2 CY20 result was a welcome surprise, attributed to sharp cost reduction on account of significant curtailment in discretionary costs. The company trades at a 35–60% valuation discount to peers Shree, UltraTech, and Ramco. Volumes declined 27% QoQ due to Covid-19 led lockdown and Ebitda just 10% QoQ.
We raise our CY20 Ebitda and Profit After Tax estimates by 12% and 15%, respectively, as we factor lower discretionary costs for the year. We expect Ebitda and PAT to turn positive YoY from the current quarter. We have, however, kept our CY21 estimates largely unchanged as discretionary costs should normalize next year.
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