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Fundamentals for ACC Limited
Business Operations:
Sector: Basic MaterialsIndustry: Building Materials
ACC Limited engages in the manufacture and sale of cement and ready-mix concrete in India. It operates in Cement and Ready Mix Concrete segments. The company provides ordinary Portland cement; blended cement, including Portland Pozzolana cement, Portland slag cement, and composite cement; gold and silver range of cement; ready mixed concrete value-added products; and bulk cement. It also offers construction chemicals, such as ACC LeakBlock, an integral waterproofing compound used in concrete and plaster while constructing houses; ACC LeakBlock WaterProof Plaster - LB 101, a ready-to-use cementitious waterproof mortar for internal and external plaster applications; and tile adhesives, under ACC Xtra Strong brand, used for wet-on-wet fixing of medium sized tiles for internal walls and floors, and external floor applications, as well as an adhesive paste for fixing tiles on floor and wall. In addition, the company provides ready use and waterproof plasters, thin bed joining mortars, grey cement-based tile adhesives, and shrinkage compensated and flowable precision cementitious grout under ACC Suraksha brand; and EcoMaxx, a green concrete with lower embodied carbon content for various structural components applications comprising foundations, columns, beams, external or internal walls, driveways, walkways, etc. It distributes its products through a network of dealers, retailers, engineers, and architects. The company was formerly known as The Associated Cement Companies Limited and changed its name to ACC Limited in September 2006. ACC Limited was incorporated in 1936 and is headquartered in Ahmedabad, India. ACC Limited operates as a subsidiary of Ambuja Cements Limited.
Revenue projections:
Investors are expected to be cautious with ACC, as its revenues are projected to fall compared to last year. A decline in revenue often results in a negative impact on profitability, prompting concerns about the company's financial stability and making investors more conservative in their approach.
Financial Ratios:
| currentRatio | 1.974000 |
|---|---|
| forwardPE | 11.913324 |
| debtToEquity | 2.085000 |
| earningsGrowth | -0.683000 |
| revenueGrowth | 0.323000 |
| grossMargins | 0.415670 |
| operatingMargins | 0.049520 |
| trailingEps | 113.450000 |
| forwardEps | 112.101370 |
ACC Limited's current ratio of 1.974, indicating that the company can meet its short-term debt obligations with ease. This high liquidity level is a positive sign, as ACC Limited has enough cash and current assets to handle its immediate liabilities comfortably.
ACC's Forward PE being in a good range indicates that the stock is valued appropriately based on its earnings. This suggests the stock is not overpriced and leaves room for growth, providing investors with an opportunity for potential appreciation in value.
ACC Limited's low earnings and revenue growth suggest that the company may see declining profits. This indicates potential financial challenges ahead, and could lead to a more cautious outlook from investors.
ACC's negative gross and operating margins reflect unprofitability, suggesting the company is unable to generate revenue sufficient to cover its costs. This could indicate deeper financial challenges or declining efficiency.
ACC's forward EPS being lower than trailing EPS indicates reduced profitability in the upcoming year. This points to a potential decline in earnings, which could impact the company's financial strength.
Price projections:
ACC's price projections have been steadily revised down, pointing to declining confidence in the company's outlook. This suggests that analysts are becoming more conservative in their expectations for ACC's future performance.
Recommendation changes over time:
Analysts have shown a buy bias for ACC, signaling it as a strong investment choice. This positive outlook could motivate investors to allocate funds to ACC, seeing it as a reliable and potentially profitable option, especially in an environment where the stock market is highly scrutinized.
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