ACC share rated buy; expert says target price Rs 2320, stop-loss Rs 1780
ACC share price closed today at Rs 1907, up Rs 12 or 0.65%. ACC share price moved from Rs 1876 to Rs 1907 in the last week. Brokerage KRChoksey said that ACC is a leading player in Indian building materials space with a pan-India operating and marketing presence. It has 17 cement plants, 80 RMC (ready mixed concrete) plants, and a wide distribution network of 56000 channel partners
ACC share price closed today at Rs 1907, up Rs 12 or 0.65%. ACC share price moved from Rs 1876 to Rs 1907 in the last week. Brokerage KRChoksey said that ACC is a leading player in Indian building materials space with a pan-India operating and marketing presence. It has 17 cement plants, 80 RMC (ready mixed concrete) plants, and a wide distribution network of 56000 channel partners.
KRChoksey, in its report, said that Infrastructure and construction activities have seen a good recovery in Q1CY21 as normalcy started returning to the economy. Pending Bharatmala awarding of around 16,219 km is likely to get completed by 2023. Also, National Infrastructure Pipeline (NIP) envisages around Rs 111 lakh cr investment over 2020-2025 period. All these augur well for ACC, to grow its revenue and profitability going forward.
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On his part, Ashis Biswas, Head of Technical Research at CapitalVia Global Research has revealed his trading strategies regarding ACC. He said, "The stock is trading close to its support zone after a corrective move. ACC had broken its all-time high recently. ACC has picked up momentum since then and seems it is likely to continue going further as well."
Ashis has recommended a buy on ACC with a Target price of Rs 2320. Investors are advised to maintain a Stop-Loss of Rs 1780, he added.
KRChoksay said that ACC Management’s focus is on increasing the share of premium brands of cement and RMC, as well as Value Added Products & Services (VAPS) business will lead to a better product mix, which coupled with improved operating efficiency, would help in expanding its EBITDA margins.
KRChoksey added that with expected capacity addition and steady capacity utilization giving good revenue visibility, they are positive on ACC’s future growth potential. Management’s focus on improving ACC’s margin profile by increasing the share of premium products in revenue mix augurs well for the company. As a result, it raised the target price for ACC to Rs 2185 (earlier Rs 2100 per share), therefore, reiterate the “BUY” rating.
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