A day after the release of ACC quarter first results, the brokerage firms have given the stock either a buy or outperform recommendation. Once a Nifty50 company, ACC’s profit grew by over 70 per cent to Rs 563 crore in the Q4 of the financial year 2020-21

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Macquarie has an Outperform call on ACC, as the cement company raises its calendar year 2021 and 2020 earnings by four and five per cent respectively. The brokerage firm says, the growth and cost efficiency programme on track of the company. It sets a target of Rs 2191 per share

Whereas, Citibank maintains a Buy rating on ACC with the company being the top pick in the cement sector. It mentions, the EBITDA is ahead of estimates and the cost focus continues, moreover, it expects industry utilisation to trend up and price hikes to offset cost inflation. It sets a target of Rs 2600 apiece.

Another brokerage firm, Jefferies to maintains Buy option while raising the target for ACC to Rs 2,300 per share and EPS estimate by eight to nine per cent. The brokerage firm points out a miss on cement realisation offset by cost savings and higher volumes.

On the contrary, CLSA has an Underperform call on ACC Cement after earnings. It mentions, the company reported first-quarter EBITDA of Rs 860 crore, which 26 per cent higher above estimates. The volumes are up by 21 per cent year-on-year and ASP declines by a per cent quarter-on-quarter, which was in-line brokerage firm’s estimates.  

ACC Cement profit jumped by 74 per cent to Rs 562 crore for the quarter ended 31 March 2021, which is up from Rs 323 cr during the corresponding quarter in FY20. The total revenues from operation at Rs 4291 as compared to Rs 3557 crore in Q1FY20. The cement company takes its financial year between January and December.

ACC opened over five per cent higher on Tuesday. It already touched day’s high at Rs 1982 per share as compared to Rs 1876 per share on Monday’s close.