Current Rating and Its Significance
MarketsMOJO’s 'Hold' rating for ACC Ltd indicates a balanced stance on the stock, suggesting that investors should maintain their existing positions rather than aggressively buying or selling. This rating reflects a moderate outlook where the stock is neither undervalued enough to warrant a strong buy nor overvalued or fundamentally weak enough to recommend selling. The rating was revised from 'Sell' to 'Hold' on 01 Oct 2025, accompanied by an improvement in the Mojo Score from 47 to 53, signalling a more stable outlook.
Here’s How ACC Ltd Looks Today
As of 20 January 2026, ACC Ltd’s financial and market data present a nuanced picture. The company operates within the Cement & Cement Products sector and is classified as a midcap stock. Despite a recent modest decline in the share price of -0.02% on the day, the stock has experienced mixed returns over various time frames: a 1-year return of -13.58%, a 6-month decline of -12.02%, and a 3-month drop of -5.38%. Year-to-date, the stock is down slightly by -0.22%. These figures highlight some short-term volatility and underperformance relative to broader benchmarks.
Quality Assessment
ACC Ltd’s quality grade is rated as 'good', reflecting solid operational and financial health. The company maintains a low average Debt to Equity ratio of zero, indicating a conservative capital structure with minimal reliance on debt financing. This prudent financial management reduces risk and enhances stability. Furthermore, the company reported strong half-yearly results ending September 2025, with a Profit After Tax (PAT) of ₹1,494.61 crores, representing a remarkable growth rate of 155.94%. Net sales for the same period stood at ₹12,018.90 crores, up 22.22%, underscoring robust revenue expansion. The Return on Capital Employed (ROCE) for the half-year was an impressive 17.88%, signalling efficient use of capital to generate profits.
Valuation Perspective
From a valuation standpoint, ACC Ltd is considered 'very attractive'. The stock trades at a Price to Book Value ratio of 1.6, which is below the historical average valuations of its peers, suggesting it is undervalued relative to its intrinsic worth. The company’s Return on Equity (ROE) stands at 16.2%, a healthy figure that supports the valuation appeal. Despite the stock’s negative 1-year return of -13.42%, the company’s profits have surged by 75.6% over the same period, resulting in a low Price/Earnings to Growth (PEG) ratio of 0.1. This indicates that earnings growth is not fully reflected in the current share price, which may interest value-oriented investors.
Financial Trend Analysis
The financial grade for ACC Ltd is 'positive', reflecting encouraging trends in profitability and sales growth. The company’s recent half-year results demonstrate strong momentum, with significant increases in PAT and net sales. This positive trajectory is a key factor supporting the 'Hold' rating, as it suggests the company is on a path of recovery and growth despite recent stock price underperformance. Institutional investors hold a substantial 27.53% stake in the company, signalling confidence from sophisticated market participants who typically conduct thorough fundamental analysis before investing.
Technical Outlook
Technically, ACC Ltd’s grade is 'bearish', indicating that the stock’s price momentum and chart patterns currently show weakness. The stock has consistently underperformed the BSE500 benchmark over the past three years, with negative returns in each of the last three annual periods. This technical weakness suggests caution for short-term traders and highlights the importance of monitoring price action closely. However, the 'Hold' rating balances this technical caution with the company’s improving fundamentals and attractive valuation.
Implications for Investors
For investors, the 'Hold' rating on ACC Ltd suggests maintaining existing positions while observing how the company’s improving fundamentals and valuation metrics translate into stock price performance. The positive financial trends and attractive valuation provide a foundation for potential future gains, but the bearish technical signals and recent underperformance advise prudence. Investors should consider their risk tolerance and investment horizon when deciding on ACC Ltd, recognising that the stock currently offers a moderate risk-reward profile.
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Summary
In summary, ACC Ltd’s current 'Hold' rating by MarketsMOJO reflects a balanced investment stance based on a combination of good quality fundamentals, very attractive valuation, positive financial trends, and bearish technical signals. The rating was last updated on 01 Oct 2025, but the analysis here is based on the latest data as of 20 January 2026. Investors should weigh the company’s strong profit growth and undervaluation against recent price weakness and technical challenges when considering their portfolio strategy.
Looking Ahead
Going forward, the key factors to watch include the company’s ability to sustain profit growth, improve its stock price momentum, and maintain its conservative capital structure. Institutional investor activity and sector dynamics within Cement & Cement Products will also influence ACC Ltd’s market performance. For now, the 'Hold' rating advises a cautious but attentive approach, recognising the stock’s potential while acknowledging current headwinds.
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