ACC Ltd has shown a consistent positive trend in YoY Net Profit Growth (%) in the last 1 years from 2023-2024 to 2023-2024.
ACC Ltd Growth
Compounded Sales Growth
10 Years:
6%
5 Years:
6%
3 Years:
13%
TTM:
-10%
Compounded Profit Growth
10 Years:
7%
5 Years:
7%
3 Years:
12%
TTM:
131%
Stock Price CAGR
10 Years:
7%
5 Years:
12%
3 Years:
11%
1 Year:
51%
Return on Equity
10 Years:
12%
5 Years:
12%
3 Years:
12%
Last Year:
14%
Last Updated: June 30, 2024, 5:19 pm
ACC Ltd Balance Sheet
Month
Dec 2011
Dec 2012
Dec 2013
Dec 2014
Dec 2015
Dec 2016
Dec 2017
Dec 2018
Dec 2019
Dec 2020
Dec 2021
Mar 2023
Sep 2023
Equity Capital
188
188
188
188
188
188
188
188
188
188
188
188
188
Reserves
6,791
7,184
7,625
8,030
8,233
8,625
9,168
10,344
11,356
12,511
14,121
13,950
14,631
Borrowings
511
163
35
0
0
0
0
0
0
102
126
153
407
Other Liabilities
4,431
4,393
4,253
4,464
4,379
4,581
5,490
5,524
5,592
5,399
6,604
6,252
6,912
Total Liabilities
11,921
11,928
12,101
12,682
12,800
13,394
14,846
16,056
17,136
18,200
21,039
20,544
22,137
Fixed Assets
6,406
5,931
5,570
5,666
5,331
7,568
7,280
7,088
7,027
6,694
6,750
7,512
8,821
CWIP
370
315
832
1,956
2,396
261
269
398
446
548
1,216
1,684
1,116
Investments
1,293
2,479
2,126
1,385
1,314
117
95
104
116
129
150
163
165
Other Assets
3,851
3,203
3,573
3,675
3,759
5,448
7,202
8,466
9,547
10,828
12,923
11,185
12,036
Total Assets
11,921
11,928
12,101
12,682
12,800
13,394
14,846
16,056
17,136
18,200
21,039
20,544
22,137
ACC Ltd Reserves and Borrowings Chart
ACC Ltd Cash Flow
Month
Dec 2011
Dec 2012
Dec 2013
Dec 2014
Dec 2015
Dec 2016
Dec 2017
Dec 2018
Dec 2019
Dec 2020
Dec 2021
Mar 2023
Cash from Operating Activity
1,576
1,577
1,063
1,352
1,457
1,390
1,554
1,118
2,255
2,219
2,835
-1,235
Cash from Investing Activity
-258
-308
-862
-1,457
-904
-533
-379
-364
-321
-535
-988
-4,637
Cash from Financing Activity
-768
-1,066
-834
-837
-716
-430
-426
-380
-374
-327
-331
-1,238
Net Cash Flow
549
203
-633
-942
-164
426
750
374
1,559
1,357
1,517
-7,110
ACC Ltd Free Cash Flow
Month
Dec 2012
Dec 2013
Dec 2014
Dec 2015
Dec 2016
Dec 2017
Dec 2018
Dec 2019
Dec 2020
Dec 2021
Mar 2023
Mar 2024
Free Cash Flow
-161.00
-34.00
1.00
1.00
1.00
1.00
2.00
2.00
-100.00
-124.00
-152.00
-352.00
Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)
Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.
Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.
Undervalued: 7.65% compared to the current price 2670
Intrinsic Value: 3,194.54
Calculation basis:
Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.
This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.
Undervalued: 19.65% compared to the current price ₹2670
Last 5 Year EPS CAGR: 11.15%
*Investments are subject to market risks
Strength and Weakness of ACC Ltd Stock
Strength
Weakness
The stock has a high average ROCE of 15.92%, which is a positive sign.
The stock has a low average Working Capital Days of -40.08, which is a positive sign.
The company has higher reserves (10,607.42 cr) compared to borrowings (77.83 cr), indicating strong financial stability.
The company has shown consistent growth in sales (13.83 cr) and profit (138.67 cr) over the years.
The stock has a high average Cash Conversion Cycle of 16.75, which may not be favorable.
Should I Buy ACC Ltd Share Now?
Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in ACC Ltd:
Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
ROE%: 14.30% (Industry Average ROE: %)
ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
✗ Stock P/E: 23.2 (Industry average Stock P/E: )
Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
✗ Total Debt / Equity: N/A
Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions. Stock Rating:★★★★☆
About the Company - ACC Ltd
ACC Ltd. is a Public Limited Listed company incorporated on 01/08/1936 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L26940MH1936PLC002515 and registration number is 002515. Currently Company is involved in the business activities of Manufacture of portland cement, aluminous cement, slag cement and similar hydraulic cement. Company’s Total Operating Revenue is Rs. 16151.35 Cr. and Equity Capital is Rs. 187.99 Cr. for the Year ended 31/12/2021.
INDUSTRY
ADDRESS
CONTACT
Cement
Adani Corporate House, Shantigram, Near Vaishnodevi Circle, Ahmedabad Maharashtra 382421
Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.
Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in ACC Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE
