Mehabe score: 5 G Factor: 5 Piotski Score: 8 The stock has a rating . The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 5 and Piotski score of 8.
Description
ACC Limited is engaged in manufacturing of cement and ready mixed concrete. The Company’s segments include Cement and Ready Mix Concrete.Site:ACCMain Symbol:ACC
Stock trades at 2152.0, above its 50dma 2003.44. It also trades above its 200dma 1802.53. The stock remains bullish on techicals
The 52 week high is at 2135.00 and the 52week low is at 1289.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– has delivered good profit growth of 21.40% CAGR over last 5 years
– has been maintaining a healthy dividend payout of 18.27%
Weakness
– The company has delivered a poor sales growth of 3.32% over past five years.
– has a low return on equity of 13.38% for last 3 years.
Competition
– The industry trades at a mean P/E of 23.1x. Shree Cement trades at the industry’s max P/E of 44.2x. ACC trades at a P/E of 22.5x
– Industry’s mean G-Factor is 5.3 while the mean Piotski score is 9.0. ACC has a G-Factor of 5 and Piotski scoreof 8.
– Average 1 month return for industry is 10.0%. The max 1- month return was given by JK Lakshmi Cem.: a return of 15.71 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 3885.0 cr compared to Rs 2602.0 cr for period ended Jun 2020, a rise of 49.3%
Operating Profits reported at Rs 869.0 cr for period ended Jun 2021 vis-vis 525.0 for period ended Jun 2020 .
Operating Margins expanded 219.1 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 30.32 compared to Rs 29.96 for previous quarter ended Mar 2021 and Rs 14.43 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 15859.0 cr for period ended TTM vis-vis sales of Rs 13786.0 cr for the period ended Dec 2020, a healthy growth of 13.1%. The 3 year sales cagr stood at 2.3%.
Operating margins expanded to 19.0% for period ended TTM vis-vis 17.0% for period ended Dec 2020, expansion of 200.0 bps.
Net Profit reported at Rs 1968.0 cr for period ended TTM vis-vis sales of Rs 1430.0 cr for the period ended Dec 2020, rising 27.3%.
Company recorded a Net Profit CAGR of 9.0% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 13.0% compared to 13.0% over the last 3 Years. – The stock has given a return of 64% on a 1 Year basis vis-vis a return of 19% over the last 3 Years. – The compounded sales growth on a TTM bassis is -4% vis-vis a compounded sales growth of 1% over the last 3 Years. – The compounded profit growth on a TTM basis is 33% vis-vis a compounded profit growth of 19% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 13.67% vis-vis 12.74% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 12.33% vis-vis 12.4% for Mar 2021
Conclusion
– is almost debt free.
– has delivered good profit growth of 21.40% CAGR over last 5 years
– has been maintaining a healthy dividend payout of 18.27% – The company has delivered a poor sales growth of 3.32% over past five years.
– has a low return on equity of 13.38% for last 3 years.
