Shares of ACC declined round two per cent in Friday’s intraday commerce after the cement maker posted weak earnings within the quarter ended June’22. ACC Ltd on Thursday reported a 60.07% decline in consolidated web revenue at Rs 227.35 crore within the second quarter ended June 30, 2022, in opposition to Rs Rs 569.45 crore in April-June a 12 months in the past.
Whole income of ACC, which follows January-December monetary 12 months, stood at Rs 4,468.42 crore as in opposition to Rs 3,884.94 crore within the year-ago interval. Nonetheless, complete bills rose to Rs 4,221.74 crore in opposition to Rs 3,175.47 crore in the identical quarter a 12 months in the past.
In the meantime, reacting to weak numbers, brokerage homes have downgraded rankings of the cement inventory and slashed goal costs of ACC on the again of q2 earnings posted by the corporate in April-June quarter.
World brokerage companies CITI and Jefferies although maintained a ‘purchase’ on the counter, however diminished their respective goal costs. CITI slashed its goal worth from Rs 2720 to Rs 2460, whereas Jefferies introduced down the goal to Rs 2565 from Rs 2659.
JP Morgan, Goldman Sachs and Credit score Suisse maintained a impartial score, nevertheless, in addition they resorted to focus on cuts. JP Morgan slashed the goal worth from Rs 2325 to Rs 2160. Goldman Sachs and Credit score Suisse new goal costs had been Rs 2100 and Rs 2000respectively.
Morgan Stanely maintained an underweight score with unchanged goal worth of Rs 2050.
Home brokerage Motilal Oswal, which anticipated comparable outcomes, mentioned ACC’s 2QCY22 end result was weak as anticipated, although, the corporate met with our muted expectations.
It believes at present ranges, ACC leaves little room for an upside. It downgraded the inventory with impartial score for goal worth of Rs 2,260, an upside of 5 per cent on its earlier closing.
Saying ‘outcomes are according to what we anticipated however it’s a miss to road estimates’, brokerage agency Phillip Capital maintained a purchase for a goal worth of Rs 2600. On Thursday’s closing it’s 20% upside.
We had been among the many lowest on road estimates. We had been c.33% decrease than consensus*. Absolute EBITDA at Rs3.5bn is 4%/31% higher/decrease vs. Us/consensus. To our estimates, volumes had been 1% higher; realisations 6% higher however opex/tonne too, was 6% larger. Resultantly, EBITDA/tonne at Rs464 was nearly in-line to our estimate at Rs 453 Vs Consensus (primarily based on our quantity estimates) realisations is 7% decrease; opex/tonne 3% larger and blended EBITDA/tonne 31% decrease,” the brokerage added.
At round 10.30 am, shares of ACC had been buying and selling with over half per cent reduce to Rs 2145.05 per share on the BSE. One-year chart sample of the cement inventory exhibits that the inventory has largely traded flat and gave negligible return of round two per cent as on July 15.