ACC Q4 Results Review - Performance Inline; Volume Surprised Positively: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.ACC Ltd.’s Q4 FY24 Ebitda grew ~80% YoY to Rs 8.4 billion (+3% versus our estimate). Its Ebitda/tonne grew 45% YoY to Rs 802 (-6% versus estimate), due to lower-than estimated realisation. Realisation was down ~9%/7% YoY/QoQ to Rs 5,171 (-4% versus estimate). Operating profit margin was up 5.8% YoY to 15.5% (estimate ~16%). Adjusted profit after tax stood at Rs 4.9 billion (+72% YoY; 4% above our estimates). The management remains positive on industry outlook as higher budgetary allocation to infrastructure, government’s push for affordable housing, and pick up in construction activities are expected to drive cement demand. It targets to increase green energy share to 60% by FY28 from ~9% in FY24. We largely maintained our Ebitda estimates for FY25/FY26. ACC trades at 11.5 times/10 times FY25E/FY26E. We value ACC at 10 times FY26E enterprise value/Ebitda to arrive at our target price of Rs 2,600. We reiterate our Neutral rating on the stock..Click on the attachment to read the full report:.ACC Q4 Results: Net Profit At Lifetime High.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

ACC Q4 Results Review - Performance Inline; Volume Surprised Positively: Motilal Oswal

Cement sales volume grew 23.5% YoY in Q4

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