Recent Price Movement and Market Context
ACC Ltd’s stock has been on a losing streak for the past four trading days, cumulatively shedding 3.59% in value during this period. Despite outperforming its sector by 0.36% on the day it hit the new low, the stock remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning underscores the prevailing bearish sentiment among market participants.
In comparison, the broader market has experienced volatility, with the Sensex opening 119.19 points higher but subsequently reversing sharply to close down by 1,192.60 points, or 1.3%, at 81,196.37. The Sensex itself is trading below its 50-day moving average, although the 50-day average remains above the 200-day average, indicating mixed signals in the broader market trend.
Financial Performance Indicators
ACC Ltd’s recent quarterly results have contributed to the subdued investor sentiment. The company reported a Profit After Tax (PAT) of Rs.375.81 crore for the latest quarter, representing a significant decline of 53.4% compared to the average of the previous four quarters. This sharp contraction in profitability has weighed heavily on the stock’s performance.
Additionally, the company’s PBDIT (Profit Before Depreciation, Interest, and Taxes) for the quarter stood at Rs.700 crore, marking the lowest level in recent periods. The Debtors Turnover Ratio for the half-year was recorded at 6.57 times, the lowest in its recent history, signalling potential challenges in receivables management.
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Long-Term and Relative Performance
Over the past year, ACC Ltd’s stock has declined by 17.33%, underperforming the Sensex, which has delivered a positive return of 6.00% over the same period. The stock’s 52-week high was Rs.2123.3, indicating a substantial drop of approximately 23.4% from that peak to the current 52-week low.
Furthermore, the company’s performance relative to the BSE500 index has been below par across multiple time frames, including the last three years, one year, and three months. This sustained underperformance has been a factor in the recent downgrade of the company’s Mojo Grade from Hold to Sell as of 1 October 2025, with the current Mojo Score standing at 38.0.
Valuation and Financial Ratios
Despite the recent price weakness, ACC Ltd maintains a low average Debt to Equity ratio of zero, reflecting a conservative capital structure. The company’s Return on Equity (ROE) is recorded at 16.2%, which is considered attractive within the sector. The stock is trading at a Price to Book Value of 1.5, indicating a valuation discount relative to its peers’ historical averages.
Profit growth over the past year has been modest, with a 4.9% increase, while the Price/Earnings to Growth (PEG) ratio stands at 2.5. These metrics suggest that while profitability has seen some improvement, the market valuation has not fully reflected this trend.
Shareholding Pattern
Institutional investors hold a significant stake in ACC Ltd, with 27.53% of shares owned by entities with greater analytical resources and long-term investment horizons. This level of institutional holding often provides a degree of stability in share price movements, even amid periods of volatility.
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Summary of Current Market Standing
ACC Ltd’s stock has experienced a notable decline to Rs.1626.6, its lowest level in the past 52 weeks, reflecting a combination of subdued quarterly earnings, lower profitability margins, and underwhelming relative performance against benchmark indices. The stock’s technical indicators remain weak, trading below all major moving averages, which aligns with the current Mojo Grade of Sell.
While the company’s conservative debt profile and attractive ROE provide some financial stability, the recent earnings contraction and lower turnover ratios have contributed to the cautious market stance. The stock’s valuation discount relative to peers indicates that the market is pricing in these challenges, as reflected in the ongoing price weakness.
Sector and Market Environment
The Cement & Cement Products sector continues to face headwinds amid fluctuating demand and pricing pressures. ACC Ltd’s performance must be viewed within this broader context, where sector peers have also experienced varying degrees of volatility. The broader market’s recent sharp reversal after a positive opening further highlights the uncertain environment in which the stock is trading.
Conclusion
ACC Ltd’s fall to a 52-week low is a reflection of multiple factors including recent earnings declines, technical weakness, and relative underperformance in the market. The stock’s current valuation and financial metrics provide a nuanced picture of the company’s standing within the sector, underscoring the complexity of its recent price movements.
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