ACC Ltd: Q1CY12 Result Update


SummaryOver last two years, EV per MT of ACC has been in the range of US$117-183. At current market price the stock is trading at US$162/MT,a discount of 11.4% to its two year high of US$183/MT. Unlike last year, we expect the demand to remain strong even in Q1FY13; however, we don’t expect a strong up tick in cement prices in Q1FY13.

The RBI’s move (50bps cut in repo) should trigger demand from housing and industrial segment in the near term. Also projects like DMIC (Delhi Mumbai industrial corridor) coupled with encouraging data on project implementation under public private partnership to aid cement companies in the long run.. Hence, we expect the demand to remain strong over next couple of years.

Q1CY12_Result_Update_ACC_Ltd.pdf

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