ACC rating – Buy: Muted show in Q1CY22 along expected lines Q1CY22 was a muted quarter for ACC (Ebitda plunging 26% y-o-y; though up 14% q-o-q). However, most of this is priced in in our view given Ebitda broadly matched Street’s and our expectation. In the wake of sharp price hikes across regions – to pass on industry-wide impact of surging fuel prices – we see limited risk to earnings. The recent buzz of a potential stake sale by global parent Holcim Group (HG) should drive outperformance, in our view. The current valuations of $100 EV/t deserve a premium (in case of a sell-off) given ACC is one of the strongest brands and has a pan-India network. With ACC’s efforts to enhance efficiency being in focus, we maintain ‘Buy’. Outperformance in store: We expect ACC to outperform given: (i) Undemanding valuations of 10.9x CY22e and 8.8x CY23e EV/Ebitda. (ii) In case the parent’s stake is on the block, ACC deserves a premium for its strong brand and pan-India network. We continue to value ACC at 13x EV/Ebitda and maintain ‘BUY/SO’.
As part of its association with Ultimate Kho Kho, IndianOil will secure the naming rights for the post-match award, recognising the ‘Attacker of the Match.’ Additionally, IndianOil will also have the naming rights to the league’s exciting powerplay segment, which was dominated by Chennai Quick Guns’ stalwart all-rounder Ramji Kashyap who accumulated a total of 24 skydive points this season.
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