Stock Prices Dip Significantly Over Five Days: Is It Wise to Buy, Sell, or Hold ACC Shares?
Headline: ACC Share Price Today, April 30: ACC Drops 10% in 5 Days, Mixed Brokerage Advice on Buy, Sell, or Hold
By: Sparsh Bansal Follow Us for all the latest on key cement player ACC!
After its earnings announcement, ACC is causing a stir. Top brokerages have revised their target prices on the shares, with a few favoring Ambuja Cements over ACC itself. Given the recent 10% correction in five days, here's what the major brokerages have to say on whether to Buy, Sell, or Hold.
Nuvama Bullish on ACC—With a Slight Pullback
Nuvama Institutional Equities preserves their Buy recommendation for ACC, however, nudging the target price down by 3.3% to ₹2,381 from ₹2,462. The reason? A modest uptick in Q4FY25 volume (14% YoY and 11% sequentially), coupled with a 2% quarter-on-quarter boost in realizations thanks to increased volumes and industry-wide pricing. This led to EBITDA overshooting Nuvama’s estimates by 7%.
The cautious optimism notwithstanding, the delay in the commissioning of two grinding units due to a three-month postponement piques concern. To address this issue, the company deployed approximately ₹690 crore for land acquisition and development in the Western region.
JM Financial Maintains Buy but Favors Ambuja Cements
With an improved pricing environment potentially being countered by higher MSA (Master Supply Agreements) volumes, JM Financial slices their EBITDA estimates for FY26-FY27 by 3% and revises their March FY26 target price to ₹2,150 (previously ₹2,250) based on a 10x FY27E EV/E. Despite the target price reduction, JM Financial upholds its Buy recommendation, attributing the valuation to a reasonable level of the stock. In comparison, within the group, JM Financial prefers Ambuja Cements over ACC, due to its higher growth potential.
ACC's Q4 Result: Profit Down by 20.4%
ACC posted a 20.4% year-on-year drop in its consolidated net profit for Q4FY25, amounting to ₹751.03 crore, compared to ₹943.4 crore in the same period last year. The net profit fell 31.2% quarter-on-quarter. The company's revenue from operations reached ₹5,991.67 crore in Q4FY25, a 12.7% year-on-year jump from the corresponding period last fiscal year. Apart from ACC, investigate other cement stocks for comparison.
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Enrichment Insights:- ACC's Q4FY25 performance saw a 20.4% decline in net profit to ₹751.03 crore compared to ₹943.4 crore in the same quarter last year.- Operations revenue showed growth of 12.7% YoY to ₹5,991.67 crore in Q4FY25, while ICICI Direct reported the highest-ever quarterly revenue of ₹6,067 crore.- The company reported an exceptional loss of ₹134.73 crore.- ACC recommended a ₹7.50/share dividend for shareholder approval in July 2025.- Axis Direct continues to advocate a Buy recommendation, crediting strong Q4 YoY volume growth (14%). However, ICICI Direct’s analysis (focusing on Q3FY25) has yet to update its stance post-Q4 results. To succeed, investors should monitor execution on volume growth and cost controls in the challenging cement sector.
- Despite a 10% drop in ACC's share price over five days, Nuvama Institutional Equities remains bullish on the investment, reducing their target price by 3.3% to ₹2,381.
- The moderate increase in ACC's Q4FY25 volume and realizations, along with increased industry-wide pricing, led to EBITDA overshooting Nuvama’s estimates by 7%.
- JM Financial has maintained a Buy recommendation for ACC, yet they favor Ambuja Cements due to its higher growth potential.
- ACC's Q4FY25 net profit saw a 20.4% year-on-year drop to ₹751.03 crore compared to ₹943.4 crore in the same quarter last year.
- Investors should keep a close watch on the execution of volume growth and cost controls in the challenging cement sector to ensure success.
- In the world of finance and investing, it's crucial to compare various cement stocks, including ACC and Ambuja Cements, to make informed decisions in the stock-market.
- As we navigate the innovative world of Defi and traditional finance, brokers' advice may vary, suggesting actions like Buy, Sell, or Hold on stocks like ACC throughout 2022.
