Recent Price Movement and Market Context
On 9 Jan 2026, ACC Ltd’s stock closed at Rs.1705, down by 0.69% on the day and underperforming the Cement & Cement Products sector by 0.8%. This decline extended a two-day losing streak, during which the stock has fallen by 2.76%. The current price represents the lowest level for the stock in the past 52 weeks, well below its high of Rs.2123.3 recorded within the same period.
The broader market environment saw the Sensex open lower at 84,022.09, down 158.87 points (-0.19%), and trading near 84,081.77 (-0.12%) at the time. Despite the Sensex being only 2.47% away from its 52-week high of 86,159.02, ACC Ltd’s share price has not mirrored this resilience, continuing to trade below all key moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day averages.
Performance Relative to Benchmarks
Over the last year, ACC Ltd’s stock has generated a negative return of -13.32%, contrasting sharply with the Sensex’s positive 8.38% gain over the same period. This underperformance extends beyond the past year, with the stock consistently lagging the BSE500 index in each of the last three annual periods. Such a trend highlights persistent challenges in regaining investor confidence and market momentum.
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Financial Metrics and Valuation Insights
Despite the recent price weakness, ACC Ltd’s financial performance shows some encouraging signs. The company reported net sales of Rs.12,018.90 crores over the latest six months, reflecting a growth rate of 22.22%. Profitability metrics also remain robust, with a return on capital employed (ROCE) of 17.88% for the half-year period and a quarterly profit after tax (PAT) reaching Rs.1,119.23 crores.
The return on equity (ROE) stands at a healthy 16.2%, supporting the stock’s valuation metrics. ACC Ltd trades at a price-to-book value of 1.6, which is considered attractive relative to its peers’ historical averages. The company’s PEG ratio of 0.1 further indicates that its price is low compared to its earnings growth, a factor that contrasts with the stock’s recent price decline.
Institutional investors hold a significant 27.75% stake in ACC Ltd, suggesting that entities with greater analytical resources maintain exposure to the company’s fundamentals despite the share price pressures.
Capital Structure and Risk Profile
ACC Ltd maintains a conservative capital structure, with an average debt-to-equity ratio of zero, indicating no reliance on debt financing. This low leverage reduces financial risk and supports the company’s ability to sustain operations and investments without excessive borrowing costs.
Sector and Market Position
Operating within the Cement & Cement Products industry, ACC Ltd faces competitive pressures that have contributed to its share price volatility. The sector itself has experienced mixed performance, with some companies outperforming the broader market while others have struggled to maintain momentum. ACC Ltd’s current market capitalisation grade is rated 2, reflecting its mid-cap status within the sector.
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Technical Indicators and Moving Averages
From a technical perspective, ACC Ltd’s share price is trading below all major moving averages, including the short-term 5-day and 20-day averages as well as the longer-term 50-day, 100-day, and 200-day averages. This positioning typically signals a bearish trend in the stock’s price action, reflecting sustained selling pressure over multiple time horizons.
In contrast, the Sensex, while trading below its 50-day moving average, maintains a 50-day average above its 200-day average, indicating a more stable medium-term market trend. This divergence highlights the relative weakness in ACC Ltd’s stock compared to the broader market.
Summary of Recent Trends
ACC Ltd’s stock has experienced a notable decline over the past year, with a total return of -13.32%. This contrasts with the Sensex’s positive 8.38% return, underscoring the stock’s underperformance. Despite this, the company’s profits have increased by 75.6% over the same period, suggesting that earnings growth has not translated into share price appreciation.
The stock’s Mojo Score currently stands at 53.0, with a Mojo Grade of Hold as of 1 Oct 2025, upgraded from a previous Sell rating. This reflects a cautious stance based on the company’s fundamentals and market performance.
Conclusion
ACC Ltd’s fall to a 52-week low of Rs.1705 marks a significant point in its recent market journey. While the stock has underperformed both its sector and benchmark indices, the company’s financial results reveal solid sales growth, profitability, and a conservative capital structure. The divergence between earnings growth and share price performance remains a key feature of the current landscape, with technical indicators signalling continued downward momentum in the near term.
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