ACC Ltd. posts strong Q1FY24 results, upgrade to ACCUMULATE
ACC Ltd., a leading Indian cement company, has posted strong results for the first quarter of fiscal year 2024 (Q1FY24). Revenue grew 16.4% year-on-year (YoY) to Rs. 5,201 crore, driven by the rise in sales volume. EBITDA surged 80.9% YoY to Rs. 771 crore, with EBITDA margin expanding 530 basis points (bps) to 14.8%, driven by cost reductions. PAT surged 105% YoY to Rs. 466 crore.
The company’s strong performance was driven by improved operational efficiency and higher sales volume. ACC’s cement plants operated at an average capacity utilization of 88% in Q1FY24, up from 85% in the previous quarter. The company’s ready-mix concrete (RMC) plants also performed well, with sales volume growing 12% YoY.
ACC’s management expects the positive demand trend in the cement industry to continue in the coming quarters. The company is also targeting to grow its sales volume by 8-10% in FY24. ACC is also investing in capacity expansion and synergy advantages, which will help to boost its profitability in the long term.
Given the company’s strong performance and growth prospects, we have upgraded our rating to ACCUMULATE on the stock with a revised target price of Rs. 2,325 based on 11.5x FY25E adjusted EPS.
Here are some of the key takeaways from the article:
- ACC Ltd. posted strong results for Q1FY24, with revenue, EBITDA, and PAT growing by 16.4%, 80.9%, and 105% YoY, respectively.
- The company’s strong performance was driven by improved operational efficiency and higher sales volume.
- ACC’s management expects the positive demand trend in the cement industry to continue in the coming quarters.
- The company is also targeting to grow its sales volume by 8-10% in FY24.
- ACC is also investing in capacity expansion and synergy advantages, which will help to boost its profitability in the long term.
- 22 Sep
NBCC shares trade higher on Rs 100 crore work order from SAIL
NBCC shares were trading 3 percent higher on September 22 after the company announced having bagged a work order worth Rs 100 crore from SAIL. This is the fourth order-win announced by the company in this month, the total value of the same being Rs 450 crore. NBCC is a public sector undertaking engaged in the business of construction and real estate development. The company specializes in providing project management, consultancy and engineering services for civil construction, infrastructure development, and real estate projects.
- 22 Sep
Glenmark Pharma stock falls on stake sale in Glenmark Life Sciences
Glenmark Pharma stock fell after the company announced it would sell a 75% stake in its subsidiary Glenmark Life Sciences to Nirma. Analysts expect the stake sale to benefit Glenmark Pharma, as it will transition from a net debt position to a cash surplus position. This is expected to have a positive impact on the company's return ratios over the next two to three years.
- 22 Sep
Berger Paints Shares Hit 52-Week High After Turning Ex-Bonus
Berger Paints shares surged 6% to hit a 52-week high after turning ex-bonus on the record date for the issue of bonus shares in the ratio 1:5. The company posted a net profit of Rs 326.3 crore in the April-June quarter of FY24, up 39% year-on-year, on revenue of Rs 2,739.7 crore, up 10% year-on-year. The company expects to get net cash positive by the end of this fiscal year and expects to end the year with double-digit revenue growth on strong demand outlook.
- 22 Sep
Market Update for September 22, 2023
IdeaForge Tech up 3.4% on order RVNL up 3% on highway MoU JSW Steel up 0.4% on sale ICICI Lombard down 1.6% on CEO exit ICICI Bank down 1% on healthcare investment NHPC up 1.3% on extended additional charge Kalyani Forge up 3.2% on new MD IRB Infra up 2.5% on road project closure
- 22 Sep
Lux Industries Shares Down 3% After Income Tax Raid
Lux Industries shares fell 3% on September 22 after news emerged that the Income Tax department had conducted searches at the company's premises in Kolkata and alleged a tax evasion of Rs 200 crore. The company has confirmed the searches and is extending full support.