Jefferies has maintained a Buy call on ACC Ltd, setting a target price of ₹2,465, which implies a 30.4% upside from the current market price of ₹1,890.
According to the brokerage, ACC’s Q1 EBITDA fell short of expectations, largely due to higher-than-anticipated costs that led to a margin miss. However, some operational positives were noted—volume growth came in at 12% YoY, potentially aided by intercompany sales, and cement realisation increased by 4.8% QoQ, beating the estimate of a 3% rise.
Jefferies highlighted ACC’s strong pan-India footprint, including 40 million tonnes per annum (mtpa) of capacity, 17 plants, and a vast dealer network of over 69,000—factors which lend structural support to its long-term positioning.
However, it cautioned investors about key risks to the outlook, including execution delays, regional clinker overcapacity, and persistent fuel cost inflation. Jefferies also flagged industry-wide pricing discipline concerns amid an active market share battle among players.
Disclaimer: The views and recommendations expressed in this article are those of Jefferies and do not represent the views of this publication. Investors are advised to consult their financial advisor before making any investment decisions.
