ACC Receives 'Sell' Rating from MarketsMOJO, Poor Long-Term Growth and Declining Profits Raise Concerns

ACC, a leading cement company in the largecap industry, has recently received a 'Sell' rating from MarketsMOJO on October 9, 2024. This downgrade is based on poor long-term growth, with net sales and operating profit only growing at an annual rate of 5.28% and 4.54% respectively over the last 5 years.

In addition, the company's results for the quarter ending June 2024 have been flat, with a significant decline in both PAT (profit after tax) and PBT (profit before tax). The DPR (dividend payout ratio) for the year is also at its lowest at 6.03%. These factors have contributed to the stock being in a bearish range, with technical indicators such as MACD, Bollinger Band, and KST all showing a negative trend.

Furthermore, ACC has underperformed the market in the last 1 year, with a return of only 19.08% compared to the market's return of 37.10%. However, the company does have a low debt to equity ratio and an attractive valuation with a price to book value of 2.7. It is also trading at a discount compared to its historical valuations.

Moreover, ACC has shown a significant increase in profits of 158.4% in the past year, while the stock has only generated a return of 19.08%. This has resulted in a PEG ratio of 0.1, indicating that the stock may be undervalued.

It is worth noting that the company has a high institutional holding of 30.62%, which suggests that these investors have better resources and capabilities to analyze the company's fundamentals compared to retail investors.

In conclusion, while ACC may have some positive factors such as low debt and attractive valuation, the recent downgrade to 'Sell' by MarketsMOJO and underperformance in the market may be a cause for concern for potential investors. It is important to carefully consider all factors before making any investment decisions.