ACC Ltd Stock Falls to 52-Week Low of Rs.1715.85 Amid Continued Downtrend

Recent Price Movement and Market Context

On the day the new low was recorded, ACC Ltd’s stock traded within a narrow range of Rs.11.5, signalling limited intraday volatility despite the downward trend. The stock’s performance was broadly in line with the Cement & Cement Products sector, which also faced modest declines. The broader market, represented by the Sensex, opened lower at 84,600.99 points, down 94.55 points (-0.11%), and was trading marginally down by 0.07% at 84,635.88 points during the same session. Notably, the Sensex remains close to its 52-week high of 86,159.02, just 1.8% away, indicating a divergence between the benchmark index and ACC Ltd’s share price trajectory.

ACC Ltd’s stock is currently trading 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 momentum in the stock over multiple time horizons.

Performance Over the Past Year

Over the last 12 months, ACC Ltd’s stock has underperformed significantly, delivering a negative return of 16.61%. This contrasts with the Sensex’s positive gain of 8.16% over the same period, highlighting the stock’s relative weakness within the broader market. The 52-week high for ACC Ltd was Rs.2123.30, indicating a substantial decline of nearly 19.2% from that peak to the current 52-week low.

In addition to the recent price decline, the stock has consistently underperformed the BSE500 index across the past three annual periods, reflecting a longer-term trend of subdued returns relative to the broader market.

Financial Metrics and Valuation Insights

Despite the recent price weakness, ACC Ltd’s financial performance over the latest six-month period shows notable growth. The company reported a Profit After Tax (PAT) of Rs.1,494.61 crores, representing an impressive increase of 155.94% compared to the previous corresponding period. Net sales also expanded by 22.22%, reaching Rs.12,018.90 crores. These figures indicate robust top-line and bottom-line growth in the recent half-yearly results.

Return on Capital Employed (ROCE) for the half-year stood at a healthy 17.88%, while Return on Equity (ROE) was recorded at 16.2%. These profitability metrics suggest efficient utilisation of capital and equity, contributing to the company’s attractive valuation profile.

ACC Ltd’s Price to Book Value ratio is currently 1.6, which is considered very attractive relative to its peers’ historical averages. The company’s PEG ratio is 0.1, reflecting a low price-to-earnings growth multiple that may appeal to value-oriented investors.

The company maintains a low average Debt to Equity ratio of zero, indicating a conservative capital structure with minimal leverage. This financial prudence supports the company’s credit profile and reduces financial risk.

Institutional Holdings and Market Perception

Institutional investors hold a significant stake in ACC Ltd, accounting for 27.75% of the shareholding. This level of institutional ownership suggests that entities with substantial analytical resources continue to maintain exposure to the stock despite recent price declines.

Sectoral and Market Dynamics

The Cement & Cement Products sector has experienced mixed performance in recent months, with some stocks facing pressure due to fluctuating demand and input cost volatility. ACC Ltd’s share price movement reflects these broader sectoral headwinds, compounded by the stock’s technical positioning below all major moving averages.

While the Sensex remains near its 52-week high, ACC Ltd’s divergence from the benchmark index highlights the stock’s relative weakness within the market. This underperformance over the past year and across multiple annual periods suggests that the stock has faced challenges in aligning with broader market gains.

Summary of Key Price and Performance Data

To summarise, ACC Ltd’s stock has declined to Rs.1715.85, its lowest level in 52 weeks, after a five-day losing streak resulting in a 3.32% drop. The stock trades below all significant moving averages and has underperformed the Sensex by over 24 percentage points in the past year. Despite this, the company’s recent financial results demonstrate strong profit and sales growth, supported by solid returns on capital and equity, alongside a conservative debt profile.

These factors contribute to the stock’s current Mojo Score of 53.0 and a Mojo Grade of Hold, upgraded from Sell as of 1 Oct 2025. The Market Cap Grade remains at 2, reflecting its mid-cap status within the Cement & Cement Products sector.

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