Current Rating and Its Significance
MarketsMOJO currently assigns ACC Ltd a 'Hold' rating, reflecting a balanced outlook on the stock. This rating suggests that investors should maintain their existing positions rather than aggressively buying or selling. The 'Hold' status indicates that while the company demonstrates solid fundamentals and attractive valuation, certain factors such as technical trends and recent stock performance warrant a cautious approach.
Quality Assessment
As of 09 January 2026, ACC Ltd maintains a good quality grade. The company’s operational metrics highlight robust profitability and efficient capital utilisation. Notably, the Return on Capital Employed (ROCE) for the half-year period stands at an impressive 17.88%, signalling effective use of capital to generate earnings. Additionally, the Return on Equity (ROE) is strong at 16.2%, underscoring the company’s ability to generate shareholder returns. The firm’s low debt-to-equity ratio, averaging zero, further enhances its quality profile by minimising financial risk and interest burden.
Valuation Perspective
ACC Ltd’s valuation is currently rated as very attractive. The stock trades at a Price to Book (P/B) ratio of 1.6, which is below the historical average for its peer group in the cement sector. This discount suggests that the market may be undervaluing the company relative to its intrinsic worth. Despite the stock delivering a negative return of -13.15% over the past year, the company’s profits have surged by 75.6% during the same period, resulting in a very low PEG ratio of 0.1. This combination of strong earnings growth and reasonable valuation metrics makes ACC Ltd an appealing option for value-oriented investors.
Financial Trend Analysis
The financial trend for ACC Ltd is positive. The latest six-month net sales reached ₹12,018.90 crores, reflecting a healthy growth rate of 22.22%. Quarterly profits also hit a peak, with PAT reported at ₹1,119.23 crores, indicating strong operational performance. These figures demonstrate the company’s ability to expand revenue and improve profitability despite challenging market conditions. Institutional investors hold a significant stake of 27.75%, signalling confidence from knowledgeable market participants who typically conduct thorough fundamental analysis before investing.
Technical Outlook
From a technical standpoint, ACC Ltd is currently rated as bearish. The stock has underperformed the broader BSE500 benchmark consistently over the past three years, with returns lagging each annual period. Recent price movements show a decline of 0.49% on the latest trading day, with a one-month drop of 3.90% and a six-month decline of 13.78%. This downward momentum suggests caution for short-term traders, as the stock faces resistance levels and lacks strong upward technical signals at present.
Stock Performance Summary
As of 09 January 2026, ACC Ltd’s stock performance reflects mixed signals. While the company’s fundamentals and valuation remain robust, the stock price has not kept pace, delivering a negative 13.15% return over the last year. Year-to-date, the stock has declined by 1.18%, and the three-month performance shows an 8.43% decrease. This divergence between strong earnings growth and subdued stock price performance highlights the importance of considering both fundamental and technical factors when evaluating the stock.
Implications for Investors
The 'Hold' rating for ACC Ltd suggests that investors should carefully weigh the company’s solid financial health and attractive valuation against the current bearish technical trend and recent price underperformance. For long-term investors, the company’s strong profitability metrics and low leverage provide a foundation for potential future gains as market sentiment improves. However, those seeking immediate capital appreciation may prefer to monitor technical signals before increasing exposure.
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Company Profile and Market Position
ACC Ltd is a midcap company operating in the Cement & Cement Products sector. It is recognised for its consistent operational performance and prudent financial management. The company’s ability to maintain a zero debt-to-equity ratio is particularly notable in a capital-intensive industry, reducing financial risk and interest expenses. This conservative capital structure supports sustainable growth and resilience during economic cycles.
Institutional Confidence and Market Sentiment
Institutional holdings at 27.75% reflect a strong vote of confidence from professional investors who typically conduct rigorous due diligence. This level of institutional interest often provides stability to the stock and can be a positive indicator for long-term prospects. However, the persistent underperformance relative to the BSE500 index over the past three years indicates that broader market factors and sector-specific challenges continue to weigh on the stock’s price.
Conclusion
In summary, ACC Ltd’s 'Hold' rating by MarketsMOJO as of 01 Oct 2025 remains appropriate given the company’s current fundamentals and market conditions as of 09 January 2026. Investors should appreciate the company’s strong quality and very attractive valuation, balanced against a cautious technical outlook and recent stock price weakness. This rating advises a measured approach, encouraging investors to maintain positions while monitoring market developments and technical signals for clearer directional cues.
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