ACC shares rise nearly 3% as Macquarie maintains ‘Outperform’ with target price of Rs 2,425

Shares of ACC Ltd gained 2.5% in early trading on January 21, reaching ₹2,055.00 on the NSE. The surge follows a positive outlook from Macquarie, which maintained its ‘Outperform’ rating on the stock with a target price of ₹2,425. This comes as part of the brokerage’s broader optimism on the cement sector.

Key Highlights:

1. Positive Sector Outlook:
   • Macquarie predicts a demand recovery and potential price hikes in the cement industry, expected to improve margins significantly from H2 CY24.
   • Capacity utilization is anticipated to remain steady, aligning with the projected demand rebound.
2. Cost Optimization and Earnings:
   • The brokerage highlighted cost optimization strategies and capacity consolidation as critical factors supporting medium-term earnings for major cement players.
   • While FY26 EBITDA estimates were trimmed by 5–14% for cement companies, Macquarie remains optimistic about the sector’s long-term growth.
3. Stock Recommendation:
   • ACC retains its ‘Outperform’ rating with a target price of ₹2,425, reflecting confidence in the company’s operational efficiency and market positioning.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult a financial advisor before making investment decisions.