ACC - 2QCY13 results - Nirmal Bang Institutional

ACC 2QCY13 performance was better than our expectations and broadly in line with Bloomberg consensus estimate. Reported net sales at Rs27.9bn (in line with our/Bloomberg consensus estimates), EBITDA at Rs4.34bn (15%/6% above our/Bloomberg consensus estimates, respectively) and net profit at Rs2.59bn (17%/3% above our/Bloomberg consensus estimates, respectively) were primarily driven by higher realisation and lower cost inflation compared to our estimates. We believe the proposed restructuring would have an neutral impact on ACC minority shareholders, but the company may gain over a period of time driven by synergy in terms of cost and its proposed expansion plan. However, weak performance in the coming quarters would limit the upside in the near term. We have retained our Hold rating on ACC with a target price of Rs1,339. (ACC 2QCY13 standalone numbers are strictly not comparable with the corresponding quarters due to amalgamation of two wholly-owned arm's with effect from 4QCY12).

Source : Equity Bulls

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