The shares of ACC Ltd., was trading at Rs.2308.55, up by 7.34%, hitting a 52 week high of Rs.2342.95 in today’s trading session.
The stock price has increased by 73.57% in last one year, while the benchmark index S&P BSE Sensex has increased by 39.50%.
The stock rallied after the company reported strong operational performance for the second quarter ended June 2021 (Q2CY21).
Due to higher realizations, the company’s EBITDA (earnings before interest, taxes, depreciation, and amortization) margins increased 233 basis points (bps) quarter on quarter (QoQ) to 22.4 per cent. Year on year (YoY), EBITDA Margins increased by 200 basis points (bps) from 20.8 percent in Q1CY20.
The company’s net sales increased by 51% year on year during the quarter, reaching Rs 3,810 crore. EBITDA increased by 65% year on year to Rs 869 crore during the quarter. Profit after tax (PAT) more than doubled to Rs 569 crore from Rs 271 crore in the same quarter the previous year.
According to management, the company has emerged stronger and more resilient as a result of a strong focus on supply chain efficiencies and cost optimization. Projects for Waste Heat Recovery Systems are moving along nicely at various locations. The large cement capacity expansion project at Ametha in Madhya Pradesh has commenced.
The management anticipates a strong recovery in demand. This would be driven by the government’s emphasis on large-scale infrastructure projects and affordable housing, as well as a revival in industrial capex spurred by the implementation of the Production-Linked Incentive scheme.
With a pan-India manufacturing and marketing presence, ACC is a market leader in the Indian building materials industry. It has become synonymous with cement, and it has established a reputation as a pioneering organization that has consistently set new benchmarks through innovative research and product development.
ACC’s primary business is the manufacturing and sale of cement and ready-mix concrete. The company has manufacturing facilities throughout India and primarily serves the domestic market.
ACC has 17 cement plants and 90+ ready mix concrete plants across the country.
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Disclaimer: This document and the process of identifying the potential of a company has been produced for only learning purposes. Since equity involves individual judgments, this analysis should be used for only learning enhancements and cannot be considered to be a recommendation on any stock or sector.