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
| ACC | Industry | Market | |
|---|---|---|---|
| 7 Day | -6.9% | -4.4% | -4.3% |
| 30 Day | -4.8% | -5.2% | -4.3% |
| 90 Day | 3.5% | 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 Year | 3.3%-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
6 days ago | Simply Wall St
ACC's (NSE:ACC) Shareholders Are Down 15% On Their Shares3 weeks ago | Simply Wall St
ACC Limited's (NSE:ACC) Popularity With Investors Under Threat1 month ago | Simply Wall St
Key Things To Watch Out For If You Are After ACC Limited's (NSE:ACC) 1.0% DividendValuation
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Legal Officer | 1yr | ₹3.80m | no data | |
| MD, CEO & Executive Director | 0.58yr | no data | no data | |
| Chief Financial Officer | no data | no data | no data | |
| Chief Marketing Officer and Head of New Products & Services | 2.08yrs | no data | no data | |
| Head of Human Resources | 1.67yrs | no data | no data | |
| Head of Central Logistics | 11.08yrs | ₹6.19m | no data | |
| Senior Vice President | 10.67yrs | ₹6.36m | no data | |
| Head of Technical Education | no data | ₹9.30m | no data | |
| Chief Manufacturing Officer | 1.25yrs | no data | no data | |
| Chief Supply Chain Officer | 1.67yrs | no data | no data | |
| Chief Commercial Officer | 0.33yr | no data | no data | |
| Chief Logistics Officer | 0.33yr | no data | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Executive Director | 0.58yr | no data | no data | |
| Non-Executive Chairman of the Board | 14.67yrs | ₹5.37m | no data | |
| Non-Executive Independent Director | 1.5yrs | ₹3.28m | no data | |
| Non-Executive Independent Director | 9.58yrs | ₹4.50m | no data | |
| Non-Executive Independent Director | 14.58yrs | ₹4.25m | no data | |
| Non-Independent Non-Executive Director | 6.58yrs | ₹2.31m | no data | |
| Non-Executive Deputy Chairman of the Board | 2.92yrs | ₹2.10m | no data | |
| Non-Executive Independent Director | 1.5yrs | ₹3.20m | no data | |
| Non-Executive Independent Director | 1.5yrs | ₹4.03m | no data | |
| Non-Executive Independent Director | 6.42yrs | ₹2.26m | no data | |
| Non-Executive Non-Independent Director | 3.75yrs | ₹88.98m | no data | |
| Non-Executive Non-Independent Director | 4.58yrs | ₹430.00k | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 500410 | BSE (Mumbai Stock Exchange) | Yes | Equity Shares | IN | INR | Jan 1992 |
| ACC | NSEI (National Stock Exchange of India) | Yes | Equity Shares | IN | INR | Jan 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/09/26 19:25 |
| End of Day Share Price | 2020/09/25 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.