ACC share price gains as Q1 results beat estimates; brokerages raise targets

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₹1,972.00 apiece on the BSE. The Adani group cement manufacturing company ACC Ltd posted a net profit of ₹466.14 crore for the quarter ending June 2023, registering a growth of 105% as compared to ₹227.35 crore in the corresponding period of last year. The company’s consolidated revenue in Q1FY24 increased 16.4% to ₹5,201.11 crore from ₹4,468.39 crore, YoY.

Volume rose by 23.2% to 9.4 MT from 7.60 MT, YoY, supported by increase in blended cement and improvement in efficiency parameters. Read here: ACC Q1 Results: Net profit soars 105% to ₹466.14 crore; revenue growth at 16.4% YoY Analysts maintained their bullish view on ACC with most brokerages raising their targets on the stock. Citi has a ‘Buy’ rating on ACC and raised the target price to ₹2,350 per share from ₹2,150 earlier as ACC Q1 results beat Citi’s estimates.

ACC’s EBITDA was 26% ahead of Citi estimates on stronger volumes and better costs. The brokerage believes efficiency and business initiatives were playing out for the company. UBS has a ‘Buy’ call on ACC and it raised the target price to ₹2,400 per share saying that the Q1 results were a stellar beat.

ACC’s cement volume grew 23% YoY significantly beating UBS estimates and consensus expectations of 10% growth. Realisation per tonne fell 2% QoQ, inline with peers, while EBITDA beat estimates by 22%. Also Read: Laurus Labs share price falls 3% after weak Q1 results; Should you buy, sell or hold? ACC Q1 results beat domestic brokerage house Motilal Oswal Financial Services’ estimates on all fronts.