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NEW DELHI: Shares of ACC dropped over 8 per cent in Friday’s trade after the cement maker reported less-than-expected results for September quarter on Wednesday.
“ACC’s inability to increase prices despite robust volume trend and spiralling costs is disheartening,” Edelweiss Securities said.
The stock fell 8.2 per cent to hit a low of Rs 1,413 on BSE.
The company reported a 15 per cent year-on-year increase in consolidated net profit at Rs 209 crore.
Analysts in an ET survey by had pegged net profit at Rs 251.53 crore.
Net sales grew 10 per cent at Rs 3,364 crore on the back of an equal percentage growth in cement volume.
“Despite monsoons blowing over and a sustained rise in variable costs, absence of a price hike is likely to be a near-term overhang for the stock.
That said, we maintain the positive view on ACC building in benefits of continued demand growth and an imminent rise in industry clinker utilisation,” the brokerage said.
Brokerage Emkay Global said ACC’s reported adjusted EBitda was lower than estimates, as lower realisation affected margins.
But the brokerage has maintained a buy rating on the stock due to reasonable valuations (10.4x CY19E EV/Ebitda) and a strong balance sheet.
