Motilal Oswal: ACC Fighting Back With Aggressive Cost Reduction  
Laborers unload cement bags from freight trains at the Shakur Basti station in New Delhi, India (Photographer Prashanth Vishwanathan/Bloomberg)

Motilal Oswal: ACC Fighting Back With Aggressive Cost Reduction  

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.

Click on the attachment to read the full report:

Motilal Oswal ACC Result Update.pdf


This report is authored by an external party. BloombergQuint 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 brokerage and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.