ACC share price hits new LIFE HIGH for second day in a row, stock up 11% in 5 sessions – check what analyst says

At around 11:00 am, the scrip was trading 5.5 per cent higher to Rs 2270 per share on the BSE: PTI

Amid better-than-expected second-quarter results, the shares of cement maker ACC hit a news life high for a second straight day after jumping for almost 7 per cent on the BSE intraday trade today. The stock has surpassed its previous life high of Rs 2169 per share, touched on July 19, 2021.

ACC reported a two-fold jump year-on-year to Rs 569 crore in the April-June quarter of 2021 as compared to Rs 270 crore in the same period a year ago. The company follows January-December financial year, unlike other companies.

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The rise in the Q2 profit was aided by a lower base, increase in sales, and cost-efficiency. While its revenue jumped over 49 per cent to Rs 3884 crore in Q2 FY21 versus Rs 2602 crore in Q2 FY20.

At around 11:00 am, the scrip is trading over 5.5 per cent higher to Rs 2270.8 per share on the BSE as compared to 0.78 per cent decline in the S&P BSE Sensex. The counter has jumped over 26 per cent in the last three months, while 11 per cent in the last five sessions.

Being bullish on the counter, CLSA upgrades ACC to Buy rating and raises the price target to Rs 2,600 per share. The company reported its best-ever EBITDA/t of Rs 1279, while its EV/EBITDA is trading at the higher end of its historical discount to the sector, points out CLSA while raising the FY21-23 EBITDA estimate by 8-9 per cent.

Choice Broking Executive Director and the market analyst Sumeet Bagadia is bullish in the stock amid healthy Q2 numbers of ACC. He expects the stock should be bought at dips and expects it would touch Rs 2350-2400 per share levels positionally with a support of Rs 2170 per share.

Bagadia mentions the stock looks beautiful on both monthly and daily charts and advices to invest for bumper gains in this cement maker stock.

ACC is a subsidiary of Swiss-based LafargeHolcim Group and one of India's leading producers of cement and ready-mixed concrete.

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