Reduce ACC - Geojit BNP Paribas

Maintain 'reduce' on ACC – TP Rs.961

- 'Reduce' rating on ACC is maintained with a target price of Rs.961 over one year.

- Company's 1QCY12 is negatively surprised. EBITDA at Rs.640 crore is significantly lower than our analysts' estimates.

- QoQ growth in average sales price (ASP) at 1% is much lower than Ambuja Cement's ASP at 4%. Average sales price at Rs.4256 grew just 1% qoq.

- Operating cost at Rs.3340/ ton is marginally higher than analysts' estimates.

- EBITDA at Rs.960/ ton missed analysts' estimates by 11%.

- It seems that the stock is currently traded at steep valuation. Maintain reduce with a target price of Rs.961 over one year.

Source : Equity Bulls

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