External broker reports(aggregated public sources), ICICI Securities Ltd

ICICI Securities Limited

External broker reports(aggregated public sources)

ICICI Securities Ltd

ICICI Securities Limited provides investment services. The Company provides corporate and investment banking, securities, wealth management, retail brokerage, initial public offerings, and advisory services. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

<ul><li>ACC (Holcim group company) is a large cement player with capacity of over 34.5 MT in India and one of the oldest cement players in the Industry</li><li>The company also manufactures ready-mix concrete and has 50 plants across India</li><li>Target Price and Valuation: We value ACC at Rs 2850 i.e.12x CY23E EV/EBITDA</li></ul><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

ACC (Holcim group company) is a large cement player with capacity of over 34.5 MT in India and one of the oldest cement players in the IndustryThe company also manufactures ready-mix concrete and has 50 plants across IndiaTarget Price and Valuation: We value ACC at Rs 2850 i.e.12x CY23E EV/EBITDAContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

ACC: Efficiency Measures Under “Project Parvat” Visible

<p>ACC has delivered 11% EBITDA/te CAGR over CY16-CY21E vs 7% for our coverage universe led by increased cost efficiencies. ACC’s EBITDA/te inched up to Rs1,127/te during 9MCY21E resulting in narrowing of the gap vs peers.</p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

ACC has delivered 11% EBITDA/te CAGR over CY16-CY21E vs 7% for our coverage universe led by increased cost efficiencies. ACC’s EBITDA/te inched up to Rs1,127/te during 9MCY21E resulting in narrowing of the gap vs peers.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Improving profitability to narrow valuation gap

External broker reports(aggregated public sources), Axis Direct

Axis Direct

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<p>We recommend a BUY rating on the stock with a target price of Rs 2,480/share. </p><p>ACC Limited (ACC) – established by historically merging ten cement companies in 1936, has emerged as one of the leading players in the Indian building materials space. The company has 17 modern cement factories, 79 ready-mixed concrete plants, a vast distribution network of over 11,000 dealers, and pan-India sales offices, making it a formidable player in the cement industry.</p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

We recommend a BUY rating on the stock with a target price of Rs 2,480/share. ACC Limited (ACC) – established by historically merging ten cement companies in 1936, has emerged as one of the leading players in the Indian building materials space. The company has 17 modern cement factories, 79 ready-mixed concrete plants, a vast distribution network of over 11,000 dealers, and pan-India sales offices, making it a formidable player in the cement industry.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

<p>We value ACC at 12x its CY22E EV/EBITDA to arrive at a TP of Rs 2,710/share, implying an upside of 21% from the CMP. We maintain our BUY rating on the stock.</p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

We value ACC at 12x its CY22E EV/EBITDA to arrive at a TP of Rs 2,710/share, implying an upside of 21% from the CMP. We maintain our BUY rating on the stock.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

ACC Limited: Resilient Performance Despite Cost Headwinds

External broker reports(aggregated public sources), HDFC Securities

HDFC Securities

<p>Hindustan Unilever: HUL’s headline numbers are broadly in line. However, weak internals (miss in volume) and cautious outlook on demand and margin are raising questions about the near-term performance. Revenue grew at 11% YoY (HSIE 10%) while UVG, at 4%, was below our estimates (6% HSIE). UVG on two-year CAGR was weak at 2.5% but improved sequentially (-0.4% in Q1FY22) after the second wave of COVID impacted Q1FY22. Health, hygiene, and nutrition portfolio (85% mix) sustained healthy growth at 7% YoY. Within the nutrition portfolio, health food drinks volume grew in double digits. Nutrition portfolio should sustain the momentum as 85% of GTM integration is completed. Gross margin pressure continued in Q2FY22 with 142bps YoY contraction due to elevated commodity costs (crude, CPO, tea, and plastic) and higher freight cost. EBITDA growth was at 9% (HSIE 7%). We expect margin to remain under pressure in the near term, owing to sustained inflation and calibrated price hikes. We cut our EPS estimates for FY22/FY23/FY24 by ~2%. We value HUL at 55x P/E on Sep-23E EPS to derive a TP of INR 2,482. Maintain REDUCE.</p>
<div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

Hindustan Unilever: HUL’s headline numbers are broadly in line. However, weak internals (miss in volume) and cautious outlook on demand and margin are raising questions about the near-term performance. Revenue grew at 11% YoY (HSIE 10%) while UVG, at 4%, was below our estimates (6% HSIE). UVG on two-year CAGR was weak at 2.5% but improved sequentially (-0.4% in Q1FY22) after the second wave of COVID impacted Q1FY22. Health, hygiene, and nutrition portfolio (85% mix) sustained healthy growth at 7% YoY. Within the nutrition portfolio, health food drinks volume grew in double digits. Nutrition portfolio should sustain the momentum as 85% of GTM integration is completed. Gross margin pressure continued in Q2FY22 with 142bps YoY contraction due to elevated commodity costs (crude, CPO, tea, and plastic) and higher freight cost. EBITDA growth was at 9% (HSIE 7%). We expect margin to remain under pressure in the near term, owing to sustained inflation and calibrated price hikes. We cut our EPS estimates for FY22/FY23/FY24 by ~2%. We value HUL at 55x P/E on Sep-23E EPS to derive a TP of INR 2,482. Maintain REDUCE.
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

HSIE Results Daily: Hindustan Unilever, Nestle India, L&T Technology Services, ACC

India

ACC Limited  manufactures a range of cements and blended cements. The Company also manufactures gypsum and refractory products such as Brown Tabular Alumina. The Company provides turnkey and application consulting services for setting up and operating cement plants and refractories. The Company owns cement plants throughout India.

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ACC Ltd (ACC IS)

ACC: Efficiency Measures Under “Project Parvat” Visible

ACC (Holcim group company) is a large cement player with capacity of over 34.5 MT in India and one of the oldest cement players in the Industry

ICICI Securities Limited

Improving profitability to narrow valuation gap

ACC has delivered 11% EBITDA/te CAGR over CY16-CY21E vs 7% for our coverage universe led by increased cost efficiencies. ACC’s EBITDA/te inched up...

ICICI Securities Limited

Pick of the Week: ACC Ltd

We recommend a BUY rating on the stock with a target price of Rs 2,480/share. ACC Limited established by historically merging ten cement companies...

Axis Direct

ACC Limited: Resilient Performance Despite Cost Headwinds

We value ACC at 12x its CY22E EV/EBITDA to arrive at a TP of Rs 2,710/share, implying an upside of 21% from the CMP. We maintain our BUY rating on...

Axis Direct

HSIE Results Daily: Hindustan Unilever, Nestle India, L&T Technology Services, ACC

HUL’s headline numbers are broadly in line. However, weak internals (miss in volume) and cautious outlook on demand and margin are raising questions

HDFC Securities

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