ACC's Quality Grade Revised Amid Mixed Performance Compared to Industry Peers

ACC, a midcap player in the Cement & Cement Products industry, has recently undergone an evaluation revision reflecting its current performance metrics. The company has demonstrated a sales growth rate of 11.92% over the past five years, alongside an EBIT growth of 8.35%. Its EBIT to interest ratio stands at 22.11, indicating a solid capacity to cover interest expenses. Additionally, ACC maintains a low debt to EBITDA ratio of 0.25 and a net debt to equity ratio of 0.00, showcasing a strong balance sheet.
Despite these positive indicators, ACC's performance has been mixed when compared to its peers. For instance, J K Cements holds a stronger quality position, while Dalmia Bharat Ltd matches ACC's average standing. In terms of returns, ACC has faced challenges, with a year-to-date decline of 8.98% and a one-year return of -19.81%, contrasting sharply with the Sensex's positive performance over the same periods.

Overall, while ACC's financial metrics reflect certain strengths, its relative performance against peers and broader market trends highlights areas for consideration in its ongoing evaluation.