Established in 1936, ACC, a pivotal entity within the Adani Group, is a stalwart in the cement and ready-mix concrete sector. With a widespread network of manufacturing units throughout India, ACC holds a dominant position in the domestic market.
This article delves into the comprehensive operations, strategies, and impact of ACC in the construction industry, shedding light on its manufacturing prowess and significant role in meeting the nation’s cement and concrete demands.
About ACC Ltd
ACC boasts a diverse product portfolio comprising cement, ready mix concrete (RMX), construction chemicals, and dry mix ranges tailored for retail and institutional customers. In terms of revenue distribution in 2020, cement constituted the lion’s share at 90%, followed by RMX at 7%, with clinker and other products making up the remaining 3%. The company’s business segments were predominantly retail-oriented (B2C), accounting for 79% of revenue, while wholesale (B2B) contributed 21%. With an extensive manufacturing footprint, ACC operates 17 cement plants and 79 RMX plants across India, collectively capable of producing approximately 34.5 million metric tons per annum (MMTPA).
Additionally, the company runs 8 captive power plants to fulfill the energy needs of its cement facilities. This robust infrastructure underscores ACC’s commitment to meeting the nation’s growing demand for quality cement and concrete products while catering effectively to diverse customer segments.
ACC Ltd Q3 FY24 Results Summary
- Profit Surge: Standalone net profit soared by 377.57% YoY, reaching Rs 527.48 crore compared to Rs 110.45 crore in Q3 FY23.
- Revenue Growth: Revenue from operations rose by 7.44% YoY, standing at Rs 4,918.34 crore in Q3 FY24 from Rs 4,577.66 crore in Q3 FY23.
- Stock Performance: ACC shares surged up to 5.98% post-announcement, reaching a day high of Rs 2,369.80.
- Capacity Expansion: Recent capacity additions have bolstered the Adani Group’s cement capacity to 77.4 MPTA, fostering volume and revenue growth prospects.
- Financial Improvement: Significant enhancements across all financial parameters were noted, with revenue up by 8.3%, operating EBITDA (excluding other income) soaring by 139%, and EBITDA margin expanding by 10 percentage points to 18.4%.
- Growth Outlook: ACC anticipates sustained cement demand growth in India at 7-8%, driven by infrastructure investments and large-scale residential projects, aligning with broader economic development goals. Additionally, strategic fuel cost optimization initiatives, including procuring low-cost petcoke, are expected to bolster cost efficiencies in upcoming quarters.
Below are the trading platforms that you can use to purchase ACC shares:
➤ Zerodha
➤ Upstox
➤ Groww
➤ AngelOne
➤ ICICIDirect
| When | Maximum Price | Minimum Price |
| March 2024 | 2,402.40 | 2,089.04 |
| April 2024 | 2,332.43 | 2,028.20 |
| May 2024 | 2,297.96 | 1,998.22 |
| June 2024 | 2,380.68 | 2,070.16 |
| July 2024 | 2,356.88 | 2,049.46 |
| August 2024 | 2,451.15 | 2,131.44 |
| September 2024 | 2,549.20 | 2,216.69 |
| October 2024 | 2,499.21 | 2,173.23 |
| November 2024 | 2,599.18 | 2,260.16 |
| December 2024 | 2,625.17 | 2,282.76 |
In 2024, ACC prices are expected to fluctuate month by month. March may see the maximum price projected to reach 2,402.40, while the minimum could be around 2,089.04. As April unfolds, slight variations are anticipated, with the maximum price forecasted at 2,332.43 and the minimum around 2,028.20. Moving into December, a notable increase is predicted, with the maximum price expected to rise to 2,625.17 and the minimum to reach 2,282.76, indicating potential bullishness in the ACC market by the end of the year.
| When | Maximum Price | Minimum Price |
| January 2025 | 2,627.80 | 2,021.38 |
| February 2025 | 2,633.07 | 2,025.44 |
| March 2025 | 2,688.36 | 2,067.97 |
| April 2025 | 2,635.65 | 2,027.42 |
| May 2025 | 2,558.88 | 1,968.37 |
| June 2025 | 2,674.03 | 2,056.95 |
| July 2025 | 2,621.60 | 2,016.61 |
| August 2025 | 2,702.68 | 2,078.98 |
| September 2025 | 2,735.11 | 2,103.93 |
| October 2025 | 2,806.22 | 2,158.63 |
| November 2025 | 2,876.38 | 2,212.60 |
| December 2025 | 3,005.82 | 2,312.17 |
| When | Maximum Price | Minimum Price |
| January 2026 | 3,095.99 | 2,381.53 |
| February 2026 | 3,175.38 | 2,442.60 |
| March 2026 | 3,299.22 | 2,537.86 |
| April 2026 | 3,234.52 | 2,488.10 |
| May 2026 | 3,140.32 | 2,415.63 |
| June 2026 | 3,281.63 | 2,524.33 |
| July 2026 | 3,217.28 | 2,474.83 |
| August 2026 | 3,316.79 | 2,551.38 |
| September 2026 | 3,432.88 | 2,640.67 |
| October 2026 | 3,522.13 | 2,709.33 |
| November 2026 | 3,610.18 | 2,777.06 |
| December 2026 | 3,700.44 | 2,846.49 |
| When | Maximum Price | Minimum Price |
| January 2027 | 3,774.45 | 2,903.42 |
| February 2027 | 3,871.23 | 2,977.87 |
| March 2027 | 4,022.21 | 3,094.00 |
| April 2027 | 3,943.34 | 3,033.34 |
| May 2027 | 3,828.48 | 2,944.99 |
| June 2027 | 4,000.77 | 3,077.51 |
| July 2027 | 3,922.32 | 3,017.17 |
| August 2027 | 4,043.63 | 3,110.48 |
| September 2027 | 4,185.15 | 3,219.35 |
| October 2027 | 4,293.97 | 3,303.05 |
| November 2027 | 4,401.32 | 3,385.63 |
| December 2027 | 4,511.35 | 3,470.27 |
| When | Maximum Price | Minimum Price |
| January 2028 | 4,601.58 | 3,539.68 |
| February 2028 | 4,719.57 | 3,630.44 |
| March 2028 | 4,903.63 | 3,772.02 |
| April 2028 | 4,807.48 | 3,698.06 |
| May 2028 | 4,667.46 | 3,590.35 |
| June 2028 | 4,877.49 | 3,751.92 |
| July 2028 | 4,781.86 | 3,678.35 |
| August 2028 | 4,929.75 | 3,792.11 |
| September 2028 | 5,102.29 | 3,924.84 |
| October 2028 | 5,234.95 | 4,026.88 |
| November 2028 | 5,365.82 | 4,127.56 |
| December 2028 | 5,499.97 | 4,230.74 |
| When | Maximum Price | Minimum Price |
| January 2029 | 5,609.97 | 4,315.36 |
| February 2029 | 5,753.81 | 4,426.01 |
| March 2029 | 5,978.21 | 4,598.62 |
| April 2029 | 5,860.99 | 4,508.46 |
| May 2029 | 5,690.28 | 4,377.14 |
| June 2029 | 5,946.35 | 4,574.11 |
| July 2029 | 5,829.75 | 4,484.42 |
| August 2029 | 6,010.05 | 4,623.12 |
| September 2029 | 6,220.40 | 4,784.93 |
| October 2029 | 6,382.13 | 4,909.33 |
| November 2029 | 6,541.69 | 5,032.07 |
| December 2029 | 6,705.23 | 5,157.87 |
| When | Maximum Price | Minimum Price |
| January 2030 | 6,839.33 | 5,261.03 |
| February 2030 | 7,014.70 | 5,395.93 |
| March 2030 | 7,288.28 | 5,606.37 |
| April 2030 | 7,145.37 | 5,496.44 |
| May 2030 | 6,937.25 | 5,336.35 |
| June 2030 | 7,249.43 | 5,576.48 |
| July 2030 | 7,107.28 | 5,467.14 |
| August 2030 | 7,327.09 | 5,636.23 |
| September 2030 | 7,583.54 | 5,833.49 |
| October 2030 | 7,780.71 | 5,985.17 |
| November 2030 | 7,975.23 | 6,134.79 |
| December 2030 | 8,174.61 | 6,288.16 |
Throughout 2030, ACC prices are expected to undergo fluctuations, presenting both potential opportunities and challenges for investors. January may witness ACC’s maximum price reaching $6,839.33, with the minimum around $5,261.03. As the year progresses, fluctuations are anticipated, with December potentially marking a significant increase, with the maximum price projected to soar to $8,174.61 and the minimum to reach $6,288.16. Investors should stay informed about market trends to navigate the dynamic landscape of ACC prices effectively.
ACC Ltd Financial Condition: Last 5 Years
| Financials | 2019 | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|---|
| Sales (Rs. Crores) | 15,658 | 13,786 | 16,152 | 22,210 | 19,341 |
| Expenses (Rs. Crores) | 13,245 | 11,431 | 13,154 | 20,285 | 16,648 |
| Operating Profit (Rs. Crores) | 2,413 | 2,355 | 2,998 | 1,925 | 2,693 |
| Other Income (Rs. Crores) | 332 | 50 | 164 | 196 | 440 |
| Interest (Rs. Crores) | 86 | 57 | 55 | 77 | 103 |
| Depreciation (Rs. Crores) | 606 | 639 | 601 | 841 | 825 |
| Profit Before Tax (Rs. Crores) | 2,053 | 1,709 | 2,506 | 1,203 | 2,206 |
| Tax (%) | 33% | 16% | 26% | 26% | – |
| Net Profit (Rs. Crores) | 1,378 | 1,430 | 1,863 | 885 | 1,627 |
| EPS (Rs.) | 73.35 | 76.16 | 99.21 | 47.13 | 86.65 |
| Dividend Payout (%) | 19% | 18% | 59% | 20% | – |
- Over the past five years, ACC Ltd has shown a varied financial performance:
- Sales witnessed fluctuations, with a notable surge in 2022 followed by a slight decline in 2023.
- Operating profit peaked in 2022 before experiencing a subsequent dip.
- Other income demonstrated an upward trend, contributing to improved profitability.
- Net profit fluctuated, with a significant increase in 2021 followed by a decline in 2022, yet rebounding in 2023.
- Earnings per share (EPS) also reflected this volatility.
- The company’s dividend payout ratio surged in 2021 before stabilizing.
- Compounded sales growth over the past decade stands at 7%, while the compounded profit growth varies across periods.
- Stock price compound annual growth rate (CAGR) demonstrates consistent growth, and return on equity has remained relatively stable over the years.
FAQs
What is ACC Ltd’s current market capitalization?
ACC Ltd’s current market capitalization is ₹44,954 Crores.
ACC Ltd’s projected share price target for 2025 ranges between ₹2,021.38 and ₹3,005.82 across different months.
ACC Ltd’s projected share price target for 2030 ranges between ₹5,261.03 (minimum) and ₹8,174.61 (maximum) across different months.
What is ACC Ltd’s current price-to-earnings (P/E) ratio?
ACC Ltd’s current stock P/E ratio stands at 26.8.
What is the dividend payout ratio for ACC Ltd?
ACC Ltd’s dividend payout ratio for the last reported year was 20%.
How has ACC Ltd’s sales growth trended over the past five years?
ACC Ltd’s sales have experienced fluctuations, with a notable surge in 2022 followed by a slight decline in 2023.
What has been ACC Ltd’s compounded sales growth over the past decade?
ACC Ltd’s compounded sales growth over the past decade stands at 7%.
What is the compounded profit growth trend for ACC Ltd over the past five years?
ACC Ltd’s compounded profit growth has varied across different periods, with a notable surge in the trailing twelve months (TTM).
What has been ACC Ltd’s return on equity (ROE) over the last year?
ACC Ltd’s return on equity for the last year was 7%.
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Conclusion: ACC Ltd’s Resilience and Growth Trajectory
In conclusion, ACC Ltd, a stalwart in the cement and ready-mix concrete sector, continues to demonstrate resilience and promising growth prospects. With a dominant position in the domestic market and a diverse product portfolio, including cement, RMX, and construction chemicals, ACC caters effectively to both retail and institutional customers. The company’s robust infrastructure, comprising 17 cement plants and 79 RMX plants, underscores its commitment to meeting the nation’s cement demands.
Financially, ACC has shown significant improvement, with a surge in profit and revenue in Q3 FY24 and a commendable track record of maintaining a healthy dividend payout ratio of 32.2%. Furthermore, the company’s almost debt-free status enhances its financial stability and resilience. However, challenges persist, including fluctuating sales growth over the past five years and a relatively low return on equity in recent years.
Despite these challenges, ACC remains well-positioned for sustained growth, supported by strategic initiatives, capacity expansions, and favorable market dynamics. As the company navigates through market fluctuations and continues to innovate, investors can anticipate steady growth and value creation in the long term.
What did we learn?
- 1 About ACC Ltd
- 2 ACC Ltd Q3 FY24 Results Summary
- 3 How to Purchase ACC Ltd Shares?
- 4 ACC Ltd Share Price Target 2024 – 2030
- 5 ACC Ltd Financial Condition: Last 5 Years
- 6 FAQs
- 6.1 What is ACC Ltd’s current market capitalization?
- 6.2 What is the projected share price target for ACC Ltd in 2025?
- 6.3 What is the projected share price target for ACC Ltd in 2030?
- 6.4 What is ACC Ltd’s current price-to-earnings (P/E) ratio?
- 6.5 What is the dividend payout ratio for ACC Ltd?
- 6.6 How has ACC Ltd’s sales growth trended over the past five years?
- 6.7 What has been ACC Ltd’s compounded sales growth over the past decade?
- 6.8 What is the compounded profit growth trend for ACC Ltd over the past five years?
- 6.9 What has been ACC Ltd’s return on equity (ROE) over the last year?
- 6.10 Also Read
- 7 Conclusion: ACC Ltd’s Resilience and Growth Trajectory
