ACC, formerly The Associated Cement Companies Limited, is a significant participant in the Indian construction materials industry. It is a part of the Adani Group, which has the largest and fastest-growing portfolio of sustainable enterprises.The company has developed a reputation for consistently creating new standards through its cutting-edge product development and research.
With more than eight decades of skill and knowledge, ACC has significantly contributed to India’s advancement.The ACC share price is Rs.2,385.80, and the market cap stands at Rs. 44,782.50 crore.There are a few points to remember before investing in ACC shares:
- The company announced its Q1FY23 recently, the highlights are as follows:
- The Amethi project to increase capacity by 5 MTPA is on pace, and the integrated unit will be operational in Q4 of 2022.
- Orders have been placed for the subsequent wave of projects at the Chanda and Wadi facilities, with waste heat recovery projects at the Jamul and Kymore plants expected to be operational in Q3 2022.
- In the quarter, there was significant volume growth of 10.5% over the prior year.
- Despite excellent efficiency gained under the ‘Parvat’ initiative, EBITDA at Rs. 426 crore was 51% lower than the previous year due to the considerable impact of fuel cost increase.
- April to June 2022 quarter has been influenced by the inflationary effects of rising global fuel prices. However, through its efficiency project ‘Parvat,’ the company has reduced the burden.
- The activation of waste heat recovery projects in the Jamul, Kymore, and Ametha facilities will increase the percentage of green power to 15%, significantly accelerating the cost-cutting journey.
- The company does not have any debt, which is a positive aspect.
- Also, there has been increasing quarterly revenue for the last three quarters. Again, a positive sign.
- The company has seen positive net profits for the last two years.
Besides these pointers, an investor can consider these red flags:
- Falling profit margin and declining net profit (QoQ).
- Quarterly Net Profit Declining with Declining Profit Margin (YoY).
- There has been a major fall in trailing 12-month net profit.
- Additionally, the company saw top management resigning, a major red flag.
A smart investor maintains all the small information about the share they look forward to buying. Before planning to trade in ACC share price, remember:
- Enter inside the acceptable range specified in the report in a staggered fashion.
- Maintain a strict stop-loss by the report’s closing premise.
- The corpus would spread among the numerous technical research items.
- Do not devote the entire trading corpus to a single stock.
Conclusion
If an investor wishes to incorporate ACC limited in their portfolio, it is important to understand the mentioned points to avoid relying on just one stock.
