NSEI:ACC

Stock Analysis Report

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Executive Summary

ACC Limited manufactures and sells cement and ready mix concrete in India. More Details


Snowflake Analysis

Flawless balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

How has ACC's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ACC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.9%

ACC

-4.4%

IN Basic Materials

-4.3%

IN Market


1 Year Return

-18.4%

ACC

-6.7%

IN Basic Materials

-1.6%

IN Market

Return vs Industry: ACC underperformed the Indian Basic Materials industry which returned -6.7% over the past year.

Return vs Market: ACC underperformed the Indian Market which returned -1.6% over the past year.


Shareholder returns

ACCIndustryMarket
7 Day-6.9%-4.4%-4.3%
30 Day-4.8%-5.2%-4.3%
90 Day3.5%0.7%6.6%
1 Year-17.4%-18.4%-6.1%-6.7%0.2%-1.6%
3 Year-16.9%-19.5%-12.0%-13.6%1.9%-3.0%
5 Year3.3%-2.2%29.6%25.8%38.6%28.4%

Price Volatility Vs. Market

How volatile is ACC's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is ACC undervalued compared to its fair value and its price relative to the market?

21.41x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ACC (₹1333.35) is trading above our estimate of fair value (₹259.17)

Significantly Below Fair Value: ACC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ACC is poor value based on its PE Ratio (21.4x) compared to the IN Basic Materials industry average (18.1x).

PE vs Market: ACC is poor value based on its PE Ratio (21.4x) compared to the Indian market (15.9x).


Price to Earnings Growth Ratio

PEG Ratio: ACC is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: ACC is overvalued based on its PB Ratio (2.1x) compared to the IN Basic Materials industry average (0.9x).


Next Steps

Future Growth

How is ACC forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

16.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACC's forecast earnings growth (16.7% per year) is above the savings rate (7.2%).

Earnings vs Market: ACC's earnings (16.7% per year) are forecast to grow slower than the Indian market (26.4% per year).

High Growth Earnings: ACC's earnings are forecast to grow, but not significantly.

Revenue vs Market: ACC's revenue (12.7% per year) is forecast to grow faster than the Indian market (11.9% per year).

High Growth Revenue: ACC's revenue (12.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ACC's Return on Equity is forecast to be low in 3 years time (11.2%).


Next Steps

Past Performance

How has ACC performed over the past 5 years?

20.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ACC has high quality earnings.

Growing Profit Margin: ACC's current net profit margins (8.5%) are lower than last year (11.3%).


Past Earnings Growth Analysis

Earnings Trend: ACC's earnings have grown significantly by 20.2% per year over the past 5 years.

Accelerating Growth: ACC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ACC had negative earnings growth (-32.9%) over the past year, making it difficult to compare to the Basic Materials industry average (-4.6%).


Return on Equity

High ROE: ACC's Return on Equity (9.9%) is considered low.


Next Steps

Financial Health

How is ACC's financial position?


Financial Position Analysis

Short Term Liabilities: ACC's short term assets (₹78.2B) exceed its short term liabilities (₹45.7B).

Long Term Liabilities: ACC's short term assets (₹78.2B) exceed its long term liabilities (₹9.7B).


Debt to Equity History and Analysis

Debt Level: ACC is debt free.

Reducing Debt: ACC had no debt 5 years ago.

Debt Coverage: ACC has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ACC has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is ACC current dividend yield, its reliability and sustainability?

1.05%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ACC's dividend (1.05%) is higher than the bottom 25% of dividend payers in the Indian market (0.58%).

High Dividend: ACC's dividend (1.05%) is low compared to the top 25% of dividend payers in the Indian market (2.32%).


Stability and Growth of Payments

Stable Dividend: ACC's dividend payments have been volatile in the past 10 years.

Growing Dividend: ACC's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.5%), ACC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ACC's dividends in 3 years are forecast to be well covered by earnings (25.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.5yrs

Average management tenure


CEO

Sridhar Balakrishnan (50 yo)

0.58

Tenure

Mr. Sridhar Balakrishnan has been Managing Director, Chief Executive Officer and Executive Director of ACC Limited since February 21, 2020 and had been its Chief Commercial Officer since July 2018 until Fe ...


Leadership Team

NamePositionTenureCompensationOwnership
Rajiv Choubey
Chief Legal Officer1yr₹3.80mno data
Sridhar Balakrishnan
MD, CEO & Executive Director0.58yrno datano data
Yatin Malhotra
Chief Financial Officerno datano datano data
Ashish Prasad
Chief Marketing Officer and Head of New Products & Services2.08yrsno datano data
Bhogendra Mishra
Head of Human Resources1.67yrsno datano data
Rajesh Seth
Head of Central Logistics11.08yrs₹6.19mno data
Sudipto Bhattacharya
Senior Vice President10.67yrs₹6.36mno data
Martin Muller
Head of Technical Educationno data₹9.30mno data
Kiran Patil
Chief Manufacturing Officer1.25yrsno datano data
Suresh Rathi
Chief Supply Chain Officer1.67yrsno datano data
Deepak Mehra
Chief Commercial Officer0.33yrno datano data
Rajeev Mehta
Chief Logistics Officer0.33yrno datano data

1.5yrs

Average Tenure

56yo

Average Age

Experienced Management: ACC's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Sridhar Balakrishnan
MD, CEO & Executive Director0.58yrno datano data
Narotam Sekhsaria
Non-Executive Chairman of the Board14.67yrs₹5.37mno data
Vinayak Chatterjee
Non-Executive Independent Director1.5yrs₹3.28mno data
Sushil Roongta
Non-Executive Independent Director9.58yrs₹4.50mno data
Shailesh Haribhakti
Non-Executive Independent Director14.58yrs₹4.25mno data
Vijay Sharma
Non-Independent Non-Executive Director6.58yrs₹2.31mno data
Jan Jenisch
Non-Executive Deputy Chairman of the Board2.92yrs₹2.10mno data
Sunil Mehta
Non-Executive Independent Director1.5yrs₹3.20mno data
Damodarannair Sundaram
Non-Executive Independent Director1.5yrs₹4.03mno data
Falguni Nayar
Non-Executive Independent Director6.42yrs₹2.26mno data
Neeraj Akhoury
Non-Executive Non-Independent Director3.75yrs₹88.98mno data
Martin Kriegner
Non-Executive Non-Independent Director4.58yrs₹430.00kno data

4.2yrs

Average Tenure

61.5yo

Average Age

Experienced Board: ACC's board of directors are considered experienced (4.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

ACC Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ACC Limited
  • Ticker: ACC
  • Exchange: NSEI
  • Founded: 1936
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: ₹250.386b
  • Shares outstanding: 187.79m
  • Website: https://www.acclimited.com

Number of Employees


Location

  • ACC Limited
  • Cement House
  • 121 Maharshi Karve Road
  • Mumbai
  • Maharashtra
  • 400020
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500410BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 1992
ACCNSEI (National Stock Exchange of India)YesEquity SharesININRJan 1992

Biography

ACC Limited manufactures and sells cement and ready mix concrete in India. The company offers ordinary Portland cement; blended cement, including fly-ash based Portland Pozzolana cement and Portland slag c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/26 19:25
End of Day Share Price2020/09/25 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.