The cement industry, epitomized by leaders like ACC, stands pivotal in fortifying global infrastructure. Beyond providing robust construction materials, ACC fuels economies, offering diverse employment opportunities across mining, manufacturing, and logistics. Embracing sustainability, the industry innovates, curbing carbon footprints, aligning with eco-friendly construction demands, and forging a promising, resilient future.
So, let’s analyze a Company’s growth and decline and unveil the Trends from Revenue surge to profitability challenges in 2024 and understand factors impacting a shift in Business Performance
About ACC
ACC Limited, a member of the Adani Group, has a rich history dating back to 1936. It’s a prominent player in the cement and ready-mix concrete industry in India. ACC’s products include cement, ready-mix concrete, construction chemicals, and dry mix solutions for various customer segments. In 2020, most of its revenue, about 90%, came from cement, while ready-mix concrete contributed 7%.
The company operates 17 modern cement plants and 79 ready-mix concrete plants across India, giving it a significant production capacity of around 34.5 million metric tonnes annually. It also has eight captive power plants to ensure a reliable energy supply.
ACC is committed to efficiency and sustainability. It launched ‘Blue Yonder,’ an AI-powered supply chain management platform, to improve predictability and manage disruptions. It’s also focused on sustainability, introducing innovative products like ACC Thermofillcrete and ACC Suraksha NX.
As part of the Adani Group, ACC plays a crucial role in the construction and infrastructure development of India. Its dedication to quality, innovation, and customer satisfaction has made it a respected brand in the cement industry.
ACC Share Price Target 2024 To 2030
ACC Share Price Target 2024
Month | Maximum Price (₹) | Minimum Price (₹) |
---|---|---|
March 2024 | ₹2,450.80 | ₹2,131.13 |
April 2024 | ₹2,379.42 | ₹2,069.06 |
May 2024 | ₹2,344.25 | ₹2,038.48 |
June 2024 | ₹2,428.65 | ₹2,111.87 |
July 2024 | ₹2,404.36 | ₹2,090.75 |
August 2024 | ₹2,500.53 | ₹2,174.38 |
September 2024 | ₹2,600.56 | ₹2,261.35 |
October 2024 | ₹2,549.56 | ₹2,217.01 |
November 2024 | ₹2,651.55 | ₹2,305.69 |
December 2024 | ₹2,678.06 | ₹2,328.75 |
In 2024, ACC’s share prices are expected to fluctuate month by month. March might see a maximum price of around ₹2,450.80 and a minimum of approximately ₹2,131.13. As the year progresses, maximum and minimum prices are projected to vary, with December potentially marking the highest maximum price of about ₹2,678.06 and a minimum around ₹2,328.75.
ACC Share Price Target 2025
ACC Share Price Target 2026 To 2030
Year | Maximum Price (₹) | Minimum Price (₹) |
---|---|---|
2026 | ₹3,197.19 | ₹2,238.03 |
2027 | ₹3,516.91 | ₹2,461.83 |
2028 | ₹4,923.67 | ₹2,461.83 |
2029 | ₹4,262.92 | ₹2,131.46 |
2030 | ₹5,541.79 | ₹3,879.25 |
Looking into the future for ACC, the year 2026 is expected to bring a potential upward market movement with a projected highest price of ₹3,197.19, while the lowest price of ₹2,238.03 hints at possible volatility.
In 2027, ACC is anticipated to experience positive sentiment and investment potential as it climbs to its highest price of ₹3,516.91, and the projected lowest price rises to ₹2,461.83, indicating a comparatively higher floor price.
Moving forward to 2028, ACC is projected to witness substantial growth with the highest expected price soaring to ₹4,923.67. However, concerns about market volatility arise as the identical lowest price projection persists at ₹2,461.83.
As ACC progresses into 2029, stability is foreseen with a highest price of ₹4,262.92 and a relatively higher floor at ₹2,131.46.
Looking even further ahead to 2030, ACC is anticipated to showcase robust growth with the highest projection standing at ₹5,541.79, while the lowest anticipated price at ₹3,879.25 advises caution due to potential market fluctuations. These future projections underscore the importance of strategic planning and careful risk assessment for ACC investors.
ACC Financial Condition Last 5 Years
Dec 2018 | Dec 2019 | Dec 2020 | Mar 2021 | Mar 2023 | ||
---|---|---|---|---|---|---|
Sales + (Crore) | 14,802 | 15,658 | 13,786 | 16,152 | 22,210 | 18,516 |
Expenses + (Crore) | 12,754 | 13,245 | 11,431 | 13,154 | 20,285 | 16,881 |
Operating Profit+ (Crore) | 2,048 | 2,413 | 2,355 | 2,998 | 1,925 | 1,635 |
OPM % | 14% | 15% | 17% | 19% | 9% | 9% |
Other Income + (Crore) | 153 | 332 | 50 | 164 | 196 | 156 |
Interest+ (Crore) | 88 | 86 | 57 | 55 | 77 | 77 |
Depreciation+ (Crore) | 603 | 606 | 639 | 601 | 841 | 723 |
Profit before tax+ (Crore) | 1,510 | 2,053 | 1,709 | 2,506 | 1,203 | 991 |
Tax % | -1% | 33% | 16% | 26% | 26% | |
Net Profit + (Crore) | 1,521 | 1,378 | 1,430 | 1,863 | 885 | 728 |
EPS in Rs+ (Crore) | 80.97 | 73.35 | 76.16 | 99.21 | 47.13 | 38.75 |
Dividend Payout % | 17% | 19% | 18% | 59% | 20% |
The company’s revenue exhibited consistent growth from December 2018 to March 2021, rising from ₹14,802 crores to ₹16,152 crores. However, there was a remarkable spike in March 2023, reaching ₹22,210 crores, possibly attributed to increased demand or revised business strategies.
Operating expenses followed a steady upward trajectory, increasing from ₹12,754 crores in December 2018 to ₹13,154 crores in March 2021. Yet, in March 2023, expenses surged to ₹20,285 crores, surpassing the revenue growth, indicating potential concerns about cost management.
The Operating Profit Margin (OPM) fluctuated but showed improvement over time, climbing from 14% in December 2018 to 19% in March 2021. However, the abrupt drop to 9% in March 2023 suggests a decline in profitability or challenges in maintaining cost efficiency.
Other income remained relatively stable, indicating consistent supplementary earnings. Interest and depreciation expenses demonstrated stability, which generally indicates financial steadiness.
Both Profit Before Tax and Net Profit increased steadily until March 2021 but experienced a significant decline by March 2023. This decline was mirrored in the downward trend of Earnings Per Share (EPS).
The Dividend Payout remained mostly below 20% but saw a spike to 59% in March 2021, indicating potential shifts in dividend policies or financial strategies during that period.
Overall, the company witnessed growth in revenue and profitability until March 2021, followed by a decline in March 2023. It might be essential to analyze the driving factors behind these shifts and reassess business strategies to navigate the current challenges. What do you make of these fluctuations in the company’s financial performance?
FAQS
What Is The Current Share Price Of ACC?
As of latest data available, the current share price of ACC is ₹2,443.
What Is The Price Target For ACC For 2025?
In December 2025, ACC’s expected maximum price is ₹3,066.37, and the expected minimum price is ₹2,358.75.
What Is The Price Target For ACC For 2030?
Looking ahead, ACC’s stock price is expected to grow gradually, reaching an expected ₹3,197.19 in 2026 and ₹5,541.79 in 2030, with varying expected minimum prices over the years.
What Has Been ACC’s Net Profit In The Last 5 Years?
Should One Invest in ACC?
Investing in ACC Limited, a member of the Adani Group primarily engaged in cement and ready-mix concrete manufacturing, demands a comprehensive evaluation. On the positive side, ACC enjoys a robust financial position, characterized by its almost debt-free status. This financial stability suggests that the company has the resilience to weather economic downturns and undertake growth initiatives without the burden of excessive debt.
Furthermore, ACC has a commendable track record of maintaining a healthy dividend payout of 32.2%, which may attract income-focused investors. However, there are notable concerns. The company has struggled with sales growth, achieving only a modest 10.8% increase over the past five years. This raises questions about ACC’s ability to expand its market share and compete effectively in the cement industry.
Additionally, the return on equity (ROE) has been relatively low, standing at 7.06% over the last three years. This suggests that ACC might not be efficiently utilizing shareholders’ equity to generate profits.
In a competitive landscape with peers like UltraTech Cement, Shree Cement, Ambuja Cements, and others, ACC’s price-to-earnings (P/E) ratio of 44.14 and dividend yield of 0.46% are reasonable. However, potential investors should thoroughly research ACC’s growth strategies, industry dynamics, and market positioning before making investment decisions. It’s essential to consider individual investment goals, risk tolerance, and the company’s prospects within the cement sector before committing to ACC Limited.
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