Despite strong second-quarter numbers, the brokerages are divided with respect to ACC Cement shares, a day after its quarterly earnings. The cement major reported a two-fold jump year-on-year to Rs 569 crore in the Q2 of the Calendar Year 2021 as against Rs 270 crore in the same period a year ago.

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The cement maker follows January-December financial year, unlike other companies. ACC’s revenue for the April-June period jumped over 49 per cent to Rs 3884 crore versus Rs 2602 crore in Q2 FY20.

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The rise in profit was aided by a lower base, increase in sales, and cost-efficiency. ACC is a member of LafargeHolcim Group and India's leading producers of cement and ready-mixed concrete.

Credit Suisse remains Neutral on ACC shares, by raising a price target to Rs 2,450 per share. It says, the company is firing on all cylinders and reflection of sector strength. The brokerage firm mentions now factor in cement EBITDA/t of Rs 1050 versus Rs 906/1044 in CY20/Q1.

Mentioning that Q2 beat on better realisations, UBS expects ACC to lose capacity market share and hence retains a SELL call on the company. Maintaining a Sell rating, the brokerage says the bulk of the cost savings-driven the impact is already through. It downgrades the price target to Rs 1530 per share.

While, CLSA upgrades ACC to Buy and raises the price target to Rs 2,600 per share. The brokerage says, the company reported its best-ever EBITDA/t of Rs 1279, while its EV/EBITDA is trading at the higher end of its historical discount to the sector. It raises the FY21-23 EBITDA estimate by 8-9 per cent.

ACC shares on Monday closed over 1 per cent higher to Rs 2150 per share on the BSE. Ahead of its results expectation, the stock hit a fresh 52-week high to Rs 2169 per share in the last few minutes of the market end yesterday.