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Last Updated on: 24 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 500410 | NSE: ACC

ACC Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 11:41 pm

Market Cap 39,240 Cr.
Current Price 2,090
High / Low2,844/1,813
Stock P/E21.2
Book Value 890
Dividend Yield0.36 %
ROCE17.3 %
ROE14.2 %
Face Value 10.0
PEG Ratio2.28

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for ACC Ltd

Competitors of ACC Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Bheema Cements Ltd 77.1 Cr. 23.635.3/21.0 13.20.00 %11.8 %56.4 % 10.0
UltraTech Cement Ltd 3,28,376 Cr. 11,37512,138/8,54450.0 2,1260.62 %15.1 %12.2 % 10.0
The Ramco Cements Ltd 22,341 Cr. 9451,058/70081.0 3020.26 %8.17 %5.63 % 1.00
The India Cements Ltd 11,039 Cr. 356386/173 1700.00 %0.78 %4.81 % 10.0
Star Cement Ltd 7,260 Cr. 180256/16236.7 67.90.00 %16.5 %11.5 % 1.00
Industry Average32,919.68 Cr1,789.9635.16530.040.62%11.13%16.10%7.13

All Competitor Stocks of ACC Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales3,8853,7494,2264,4274,4683,9874,5374,7915,2014,4354,9145,4095,155
Expenses3,0163,0373,6703,7924,0423,9714,1584,3224,4303,8854,0104,5724,476
Operating Profit86971255663542616379469771549905837679
OPM %22%19%13%14%10%0%8%10%15%12%18%15%13%
Other Income49651625856-3555802129435073
Interest13171311151819152529346733
Depreciation146151160154165173173177200213235235232
Profit before tax758610384532305-118152331626519729885486
Tax %25%26%27%26%25%-26%26%29%25%25%26%-7%26%
Net Profit569450281396227-87113236466388538945361
EPS in Rs30.3223.9714.9521.1012.11-4.656.0312.5524.8220.6528.6350.3119.24

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Mar 2023Mar 2024TTM
Sales11,27511,06211,64611,70610,99013,28514,80215,65813,78616,15222,21019,95919,913
Expenses9,0789,41610,11610,1239,53211,37012,75413,24511,43113,15420,28516,89716,943
Operating Profit2,1971,6461,5291,5831,4581,9152,0482,4132,3552,9981,9253,0622,970
OPM %19%15%13%14%13%14%14%15%17%19%9%15%15%
Other Income-72265241-9011513715333250164196735728
Interest115114836579998886575577155163
Depreciation569584568663609644603606639601841883915
Profit before tax1,4411,2141,1207668851,3101,5102,0531,7092,5061,2032,7592,620
Tax %27%11%-3%25%26%29%-1%33%16%26%26%15%
Net Profit1,0591,0951,1625876589251,5211,3781,4301,8638852,3372,232
EPS in Rs56.4258.3161.8831.3035.0649.2380.9773.3576.1699.2147.13124.42118.83
Dividend Payout %53%52%55%54%49%53%17%19%18%59%20%6%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2023-2024
YoY Net Profit Growth (%)164.07%
Change in YoY Net Profit Growth (%)0.00%

ACC Ltd has shown a consistent positive trend in YoY Net Profit Growth (%) in the last 1 years from 2023-2024 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:6%
5 Years:6%
3 Years:13%
TTM:6%
Compounded Profit Growth
10 Years:7%
5 Years:7%
3 Years:12%
TTM:41%
Stock Price CAGR
10 Years:4%
5 Years:7%
3 Years:-4%
1 Year:15%
Return on Equity
10 Years:12%
5 Years:12%
3 Years:12%
Last Year:14%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:47 am

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Mar 2023Mar 2024Sep 2024
Equity Capital188188188188188188188188188188188188188
Reserves7,1847,6258,0308,2338,6259,16810,34411,35612,51114,12113,95016,14216,533
Borrowings16335000000102126153355457
Other Liabilities4,3934,2534,4644,3794,5815,4905,5245,5925,3996,6046,2526,7016,541
Total Liabilities11,92812,10112,68212,80013,39414,84616,05617,13618,20021,03920,54423,38623,719
Fixed Assets5,9315,5705,6665,3317,5687,2807,0887,0276,6946,7507,51210,02510,572
CWIP3158321,9562,3962612693984465481,2161,6849861,268
Investments2,4792,1261,3851,31411795104116129150163811821
Other Assets3,2033,5733,6753,7595,4487,2028,4669,54710,82812,92311,18511,56411,058
Total Assets11,92812,10112,68212,80013,39414,84616,05617,13618,20021,03920,54423,38623,719

Reserves and Borrowings Chart

Cash Flow

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Mar 2023Mar 2024
Cash from Operating Activity +1,5771,0631,3521,4571,3901,5541,1182,2552,2192,835-1,2352,995
Cash from Investing Activity +-308-862-1,457-904-533-379-364-321-535-988-4,637-1,205
Cash from Financing Activity +-1,066-834-837-716-430-426-380-374-327-331-1,238-443
Net Cash Flow203-633-942-1644267503741,5591,3571,517-7,1101,347

Free Cash Flow

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Mar 2023Mar 2024
Free Cash Flow-161.00-34.001.001.001.001.002.002.00-100.00-124.00-152.00-352.00

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.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Mar 2023Mar 2024
Debtor Days101313151818211512101415
Inventory Days239231233235278261263153131162109117
Days Payable139132139173286337301198207243110121
Cash Conversion Cycle1101121067710-58-17-30-64-701312
Working Capital Days-55-59-54-53-64-51-28-42-62-713721
ROCE %24%17%15%12%11%16%16%19%16%19%9%17%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters54.53%54.53%54.53%54.53%56.69%56.69%56.69%56.69%56.69%56.69%56.69%56.69%
FIIs13.69%13.86%12.85%12.21%11.42%11.95%10.05%9.98%7.10%6.24%6.17%5.64%
DIIs19.28%19.16%19.89%20.56%18.95%18.64%19.51%19.35%22.79%24.14%24.64%24.82%
Government0.15%0.15%0.15%0.15%0.15%0.15%0.15%0.15%0.15%0.15%0.15%0.15%
Public12.35%12.30%12.58%12.54%12.78%12.55%13.57%13.80%13.26%12.76%12.33%12.68%
No. of Shareholders1,25,5521,22,3471,35,3101,37,3911,41,9221,31,4121,70,3731,77,1781,67,6391,64,5471,49,8931,68,397

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Mid-Cap Opportunities Fund - Regular Plan4,286,8821.591122.76692,3972024-11-21519.14%
Mirae Asset Large & Midcap Fund2,208,9381.53578.53692,3972024-11-21219.03%
SBI Contra Fund1,443,1711.1377.97692,3972024-11-21108.43%
SBI Large & Midcap Fund1,358,4401.39355.78692,3972024-11-2196.19%
Mirae Asset Midcap Fund1,273,8272333.62692,3972024-11-2183.97%
ICICI Prudential Value Discovery Fund868,4110.5227.44692,3972024-11-2125.42%
Aditya Birla Sun Life Frontline Equity Fund788,8610.71206.61692,3972024-11-2113.93%
ICICI Prudential Large & Mid Cap Fund700,1651.27183.38692,3972024-11-211.12%
Franklin India Flexi Cap Fund700,0001.1183.33692,3972024-11-211.1%
ICICI Prudential Multi Asset Fund692,3970.41181.34692,3972024-11-210%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Dec 21Dec 20Dec 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)124.4247.1399.2176.1673.35
Diluted EPS (Rs.)124.0947.0198.9475.9873.17
Cash EPS (Rs.)170.5890.98130.44109.59104.79
Book Value[Excl.RevalReserv]/Share (Rs.)868.84752.27761.33675.69614.23
Book Value[Incl.RevalReserv]/Share (Rs.)868.84752.27761.33675.69614.23
Revenue From Operations / Share (Rs.)1061.701181.45859.18733.34832.89
PBDIT / Share (Rs.)189.08120.58170.48136.81145.28
PBIT / Share (Rs.)142.1075.83138.52102.83113.03
PBT / Share (Rs.)146.0963.11132.7190.43108.44
Net Profit / Share (Rs.)123.6046.2398.4975.6172.53
NP After MI And SOA / Share (Rs.)124.2847.0899.1076.0873.27
PBDIT Margin (%)17.8010.2019.8418.6517.44
PBIT Margin (%)13.386.4116.1214.0213.57
PBT Margin (%)13.765.3415.4412.3313.01
Net Profit Margin (%)11.643.9111.4610.308.70
NP After MI And SOA Margin (%)11.703.9811.5310.378.79
Return on Networth / Equity (%)14.306.2613.0111.2611.93
Return on Capital Employeed (%)15.459.5617.3214.4217.08
Return On Assets (%)9.994.308.857.858.03
Asset Turnover Ratio (%)0.901.070.820.780.94
Current Ratio (X)1.601.461.731.761.60
Quick Ratio (X)1.291.181.511.571.36
Inventory Turnover Ratio (X)4.086.275.044.163.82
Dividend Payout Ratio (NP) (%)7.43123.0614.1118.3819.08
Dividend Payout Ratio (CP) (%)5.3963.0810.6712.7013.25
Earning Retention Ratio (%)92.57-23.0685.8981.6280.92
Cash Earning Retention Ratio (%)94.6136.9289.3387.3086.75
Interest Coverage Ratio (X)22.9929.3358.6745.0631.66
Interest Coverage Ratio (Post Tax) (X)14.5514.3435.9028.9816.81
Enterprise Value (Cr.)44959.8030922.0034164.5424421.8422513.41
EV / Net Operating Revenue (X)2.251.392.121.771.44
EV / EBITDA (X)12.6513.6410.669.508.24
MarketCap / Net Operating Revenue (X)2.351.412.582.211.73
Retention Ratios (%)92.56-23.0685.8881.6180.91
Price / BV (X)2.872.222.912.402.35
Price / Net Operating Revenue (X)2.351.412.582.211.73
EarningsYield0.040.020.040.040.05

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of ACC Ltd as of November 24, 2024 is: 2,688.90

Calculation basis:

  • 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.

As of November 24, 2024, ACC Ltd is Undervalued by 28.66% compared to the current share price 2,090.00

Intrinsic Value of ACC Ltd as of November 24, 2024 is: 2,939.10

Calculation basis:

  • Intrinsic 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 intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 24, 2024, ACC Ltd is Undervalued by 40.63% compared to the current share price 2,090.00

Last 5 Year EPS CAGR: 9.30%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 15.92%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -40.08, which is a positive sign.
  3. The company has higher reserves (11,063.23 cr) compared to borrowings (107.00 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (14.23 cr) and profit (128.15 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 16.75, which may not be favorable.

Stock Analysis

  • 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:
    1. Net Profit Margin: 11.64%
      • 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.
    2. ROCE: 15.45% (Industry Average ROCE: 11.13%)
      • 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.
    3. ROE%: 14.3% (Industry Average ROE: 15.02%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 14.55
      • 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.
    5. Quick Ratio: 1.29
      • 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.
    6. Stock P/E: 21.2 (Industry average Stock P/E: 21.09)
      • 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.
    7. Total Debt / Equity: 0
      • 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 - Qualitative Analysis

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.
INDUSTRYADDRESSCONTACT
CementAdani Corporate House, Shantigram Near Vaishnodevi Circle, S. G. Ahmedabad Gujarat 382421acc-investorsupport@adani.com
www.acclimited.com
Management
NamePosition Held
Mr. Karan AdaniChairman(NonExe.&Ind.Director)
Mr. Ajay KapurWholeTime Director & CEO
Mr. Vinay PrakashNon Exe.Non Ind.Director
Mr. Sandeep SinghiNon Exe.Non Ind.Director
Mr. Arun Kumar AnandNon Exe.Non Ind.Director
Mr. Nitin ShuklaInd. Non-Executive Director
Mr. Rajeev AgarwalInd. Non-Executive Director
Ms. Ameera ShahInd. Non-Executive Director

FAQ

What is the latest intrinsic value of ACC Ltd?

The latest intrinsic value of ACC Ltd as on 24 November 2024 is ₹2688.90, which is 28.66% higher than the current market price of ₹2,090.00.

What is the Market Cap of ACC Ltd?

The Market Cap of ACC Ltd is 39,240 Cr..

What is the current Stock Price of ACC Ltd as on 24 November 2024?

The current stock price of ACC Ltd as on 24 November 2024 is 2,090.

What is the High / Low of ACC Ltd stocks in FY 2024?

In FY 2024, the High / Low of ACC Ltd stocks is 2,844/1,813.

What is the Stock P/E of ACC Ltd?

The Stock P/E of ACC Ltd is 21.2.

What is the Book Value of ACC Ltd?

The Book Value of ACC Ltd is 890.

What is the Dividend Yield of ACC Ltd?

The Dividend Yield of ACC Ltd is 0.36 %.

What is the ROCE of ACC Ltd?

The ROCE of ACC Ltd is 17.3 %.

What is the ROE of ACC Ltd?

The ROE of ACC Ltd is 14.2 %.

What is the Face Value of ACC Ltd?

The Face Value of ACC Ltd is 10.0.

About the Author

Author Avatar
Getaka

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