ACC is India’s second-largest cement company with an installed capacity of ~33 mtpa. It also has presence in the ready-mix concrete (RMC) business.
Valuation: We expect revenue/PAT to grow at a CAGR of 11%/24% over CY17-19E. Although increasing cost pressure is likely to weigh on margin, improving mix, volumes ramp up and cost savings will drive EBITDA margin expansion of 250bps over CY17-19E. Recommend BUY rating on the stock with a revised target price of Rs. 1,655 based on valuation multiple of 12x CY19E EV/EBITDA.
Investments in equity shares, debentures, etc., are not obligations of, or guaranteed by Wealth India Financial Services Pvt. Ltd., and are subject to investment risks. Click here to read our full disclaimer.
[fbcomments]
- Discontinuation of the Systematic Investment Plan (SIP) of the Designated Schemes of MOMF
- Change in Maximum Subscription Amount of Aditya Birla Sun Life Medium Term Plan
Wealth Conversations – December 2024
Are Arbitrage Funds right for you?- Introduction Of Daily, Weekly Frequency In Sip And Changes In Default Sip Date And Minimum Investment Amount For The Groww Mutual Funds
