NSEI:ACC

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with solid track record.


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


Market Performance


7 Day Return

4.4%

ACC

3.1%

IN Basic Materials

1.6%

IN Market


1 Year Return

-3.6%

ACC

-1.3%

IN Basic Materials

0.8%

IN Market

Return vs Industry: ACC underperformed the Indian Basic Materials industry which returned -1.3% over the past year.

Return vs Market: ACC underperformed the Indian Market which returned 0.8% over the past year.


Shareholder returns

ACCIndustryMarket
7 Day4.4%3.1%1.6%
30 Day-1.9%-2.5%1.5%
90 Day-6.0%-13.3%-3.3%
1 Year-2.6%-3.6%-0.7%-1.3%2.7%0.8%
3 Year-4.4%-7.3%-3.6%-5.2%22.0%16.0%
5 Year10.2%3.6%52.2%47.4%42.3%29.3%

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?

16.14x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: ACC (₹1498.05) is trading above our estimate of fair value (₹1366.68)

Significantly Undervalued: ACC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ACC is good value based on its PE Ratio (16.1x) compared to the Basic Materials industry average (18.3x).

PE vs Market: ACC is poor value based on its PE Ratio (16.1x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

Low PEG Ratio: ACC is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: ACC is overvalued based on its PB Ratio (2.6x) compared to the IN Basic Materials industry average (1x).


Next Steps

Future Growth

How is ACC forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

6.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACC's forecast earnings growth (6.1% per year) is below the savings rate (7.6%).

Earnings vs Market: ACC's earnings (6.1% per year) are forecast to grow slower than the Indian market (18.3% per year).

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

Revenue vs Market: ACC's revenue (6.2% per year) is forecast to grow slower than the Indian market (11.4% per year).

High Growth Revenue: ACC's revenue (6.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: ACC's Return on Equity is forecast to be low in 3 years time (12.4%).


Next Steps

Past Performance

How has ACC performed over the past 5 years?

9.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ACC's earnings have grown by 9.6% per year over the past 5 years.

Accelerating Growth: ACC's earnings growth over the past year (80.4%) exceeds its 5-year average (9.6% per year).

Earnings vs Industry: ACC earnings growth over the past year (80.4%) exceeded the Basic Materials industry 19.8%.


Return on Equity

High ROE: ACC's Return on Equity (15.9%) is considered low.


Return on Assets

ROA vs Industry: ACC has a higher Return on Assets than the Basic Materials industry average last year.


Return on Capital Employed

ROCE Improving: ACC has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is ACC's financial position?


Financial Position Analysis

Short Term Liabilities: ACC's short term assets (₹71.6B) exceeds its short term liabilities (₹46.7B)

Long Term Liabilities: ACC's short term assets (71.6B) exceeds its long term liabilities (8.3B)


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

Inventory Level: ACC has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if ACC's debt is covered by short term assets.


Next Steps

Dividend

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

0.93%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%0.6%markettop25%2.5%industryaverage0.6%forecastin3Years1.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ACC's dividend (0.93%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: ACC's dividend (0.93%) is low compared to the top 25% of dividend payers in the Indian market (2.49%).

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 (15.1%), 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 (29.3% payout ratio).


Next Steps

Management

What is the CEO of ACC's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Neeraj Akhoury (51yo)

2.7yrs

Tenure

₹71,310,000

Compensation

Mr. Neeraj Akhoury has been Chief Executive Officer and Managing Director of ACC Limited since February 4, 2017. Mr. Akhoury served as the Chief Executive Officer of Lafarge Surma Cement Limited from Septe ...


CEO Compensation Analysis

Compensation vs. Market: Neeraj's total compensation ($USD1.00M) is about average for companies of similar size in the Indian market ($USD828.95K).

Compensation vs Earnings: Neeraj's compensation has increased by more than 20% in the past year.


Management Age and Tenure

1.3yrs

Average Tenure

51yo

Average Age

Experienced Management: ACC's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

4.7yrs

Average Tenure

60.5yo

Average Age

Experienced Board: ACC's board of directors are considered experienced (4.7 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Ashish Prasad (48yo)

    Chief Marketing Officer and Head of New Products & Services

    • Tenure: 1.2yrs
  • Rajani Kesari (48yo)

    Chief Financial Officer

    • Tenure: 0.2yrs
  • Rajiv Choubey (47yo)

    Head of Legal Services

    • Tenure: 1.3yrs
  • Rajesh Seth (62yo)

    Head of Central Logistics

    • Tenure: 10.2yrs
    • Compensation: ₹6.19m
  • Sudipto Bhattacharya (58yo)

    Senior Vice President

    • Tenure: 9.8yrs
    • Compensation: ₹6.36m
  • Martin Muller (68yo)

    Head of Technical Education

    • Tenure: 0yrs
    • Compensation: ₹9.30m
  • Procyon Mukherjee

    Chief Procurement Officer

    • Tenure: 1.8yrs
  • Neeraj Akhoury (51yo)

    MD, CEO & Executive Director

    • Tenure: 2.7yrs
    • Compensation: ₹71.31m
  • Sridhar Balakrishnan

    Chief Commercial Officer

    • Tenure: 1.3yrs
  • Bhogendra Mishra

    Head of Human Resources

    • Tenure: 0.8yrs

Board Members

  • Narotam Sekhsaria (70yo)

    Chairman of the Board

    • Tenure: 13.8yrs
    • Compensation: ₹5.41m
  • Vinayak Chatterjee (60yo)

    Non Executive Independent Director

    • Tenure: 0.6yrs
  • Sushil Roongta (69yo)

    Non-Executive Independent Director

    • Tenure: 8.7yrs
    • Compensation: ₹4.49m
  • Shailesh Haribhakti (63yo)

    Non-Executive Independent Director

    • Tenure: 13.7yrs
    • Compensation: ₹4.27m
  • Vijay Sharma (61yo)

    Non Independent Non Executive Director

    • Tenure: 5.7yrs
    • Compensation: ₹2.05m
  • Jan Jenisch (53yo)

    Deputy Chairman of the Board

    • Tenure: 2yrs
    • Compensation: ₹2.10m
  • Christof Hassig (61yo)

    Non Executive Non Independent Director

    • Tenure: 3.8yrs
    • Compensation: ₹2.30m
  • Falguni Nayar (56yo)

    Non Executive Independent Director

    • Tenure: 5.5yrs
    • Compensation: ₹2.31m
  • Neeraj Akhoury (51yo)

    MD, CEO & Executive Director

    • Tenure: 2.7yrs
    • Compensation: ₹71.31m
  • Martin Kriegner (58yo)

    Non Executive Non Independent Director

    • Tenure: 3.7yrs
    • Compensation: ₹430.00k

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: ₹275.925b
  • 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 Analysis2019/10/15 12:47
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.