ACC Ltd is Rated Sell by MarketsMOJO

Current Rating and Its Significance

MarketsMOJO’s current Sell rating on ACC Ltd indicates a cautious stance towards the stock, suggesting that investors may want to consider reducing exposure or avoiding new purchases at this time. This rating is derived from a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Each of these factors contributes to the overall assessment of the stock’s attractiveness and risk profile.

Quality Assessment

As of 23 February 2026, ACC Ltd’s quality grade is classified as average. This reflects a moderate level of operational efficiency, product competitiveness, and management effectiveness relative to its peers in the Cement & Cement Products sector. While the company maintains a stable market presence, it has not demonstrated significant improvements in profitability or innovation that would elevate its quality rating. Investors should note that an average quality grade suggests the company is neither a standout performer nor a laggard in its industry.

Valuation Perspective

The valuation grade for ACC Ltd is currently deemed attractive. This implies that, based on prevailing market prices and fundamental metrics such as price-to-earnings and price-to-book ratios, the stock is trading at a discount relative to its intrinsic value or sector benchmarks. For value-oriented investors, this could signal a potential opportunity to acquire shares at a reasonable price. However, valuation alone does not guarantee positive returns, especially if other factors weigh negatively on the stock.

Financial Trend Analysis

The financial grade assigned to ACC Ltd is negative, indicating that recent financial performance and trends have been disappointing. The latest data shows that the company has experienced declining profitability, margin pressures, or weakening cash flows. This negative trend raises concerns about the sustainability of earnings and the company’s ability to generate shareholder value in the near term. Such a financial backdrop often warrants a cautious investment approach.

Technical Outlook

From a technical standpoint, ACC Ltd’s stock exhibits a mildly bearish grade. This suggests that recent price movements and chart patterns indicate downward momentum or limited upside potential. The stock’s short- to medium-term trend is not favourable, which may deter momentum investors or traders seeking strong price appreciation. Technical signals often reflect market sentiment and can influence near-term trading decisions.

Stock Performance Overview

As of 23 February 2026, ACC Ltd’s stock has delivered a negative return of -14.26% over the past year. This underperformance extends to shorter time frames as well, with declines of -4.95% over the past month and -12.77% over the past three months. Year-to-date, the stock has fallen by -7.11%. These figures highlight the challenges the company faces in regaining investor confidence and market momentum.

Moreover, ACC Ltd has underperformed the broader BSE500 index over the last three years, one year, and three months, signalling that its struggles are not isolated but persistent relative to the wider market. This relative weakness is an important consideration for investors comparing sector and market opportunities.

Market Capitalisation and Sector Context

ACC Ltd is classified as a small-cap company within the Cement & Cement Products sector. Small-cap stocks often carry higher volatility and risk compared to large-cap peers, which can amplify the impact of adverse financial trends and technical weakness. The cement sector itself is cyclical and sensitive to economic conditions, infrastructure spending, and commodity prices, all of which influence ACC Ltd’s prospects.

What This Rating Means for Investors

For investors, the Sell rating on ACC Ltd serves as a signal to exercise caution. It suggests that the stock currently faces headwinds across multiple dimensions, including financial health and market sentiment. While the valuation appears attractive, the negative financial trend and bearish technical outlook imply that the stock may continue to face downward pressure in the near term.

Investors should carefully weigh these factors against their own risk tolerance and investment horizon. Those with a preference for stable, high-quality companies might find better opportunities elsewhere, whereas value investors may monitor the stock for signs of financial recovery or technical improvement before considering entry.

Summary of Key Metrics as of 23 February 2026

To recap, the key metrics shaping the current rating are:

• Mojo Score: 38.0 (Sell grade)
• Quality Grade: Average
• Valuation Grade: Attractive
• Financial Grade: Negative
• Technical Grade: Mildly Bearish
• Stock Returns: -14.26% (1 year), -7.11% (YTD), -4.95% (1 month)

These data points collectively inform the current cautious stance on ACC Ltd’s stock, reflecting both challenges and potential value considerations.

Looking Ahead

Investors should continue to monitor ACC Ltd’s quarterly results, sector developments, and broader economic indicators that impact the cement industry. Improvements in financial trends or technical signals could warrant a reassessment of the stock’s rating in the future. Until then, the current Sell rating advises prudence and careful evaluation before committing capital.

Conclusion

In conclusion, ACC Ltd’s current Sell rating by MarketsMOJO, last updated on 28 January 2026, reflects a comprehensive analysis of the company’s present fundamentals and market conditions as of 23 February 2026. While the stock’s valuation is attractive, the negative financial trend and bearish technical outlook underpin the cautious recommendation. Investors should consider these factors carefully in the context of their portfolios and investment goals.

Limited Period Only. Start at Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Get 71% Off →