ACC Ltd Stock Falls to 52-Week Low of Rs.1722.05 Amid Continued Downtrend

Recent Price Movement and Market Context

On the day the new 52-week low was recorded, ACC Ltd’s stock underperformed its sector by 0.37%, closing with a day change of -0.56%. The stock has experienced a cumulative decline of 2.86% over the last four trading days, trading within a narrow range of Rs.16.65. Notably, ACC is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum.

In contrast, the broader market benchmark, the Sensex, opened flat but moved into negative territory, trading at 84,798.66 points, down 0.29% or 36.70 points. The Sensex remains close to its 52-week high of 86,159.02, just 1.6% away, and is supported by bullish moving averages with the 50-day DMA above the 200-day DMA. This divergence highlights ACC Ltd’s relative underperformance within the current market environment.

Long-Term Performance and Valuation Metrics

Over the past year, ACC Ltd’s stock has declined by 16.54%, a stark contrast to the Sensex’s positive return of 7.78% during the same period. The stock’s 52-week high was Rs.2123.30, indicating a significant retracement from that peak. Despite the price weakness, the company maintains a low average debt-to-equity ratio of zero, reflecting a conservative capital structure.

Financially, ACC Ltd reported encouraging results for the six months ended September 2025. Net sales rose by 22.22% to Rs.12,018.90 crores, while profit after tax (PAT) surged by 155.94% to Rs.1,494.61 crores. The company’s return on capital employed (ROCE) for the half year stood at a robust 17.88%, and return on equity (ROE) was recorded at 16.2%. These figures contribute to a very attractive valuation, with the stock trading at a price-to-book value of 1.6, which is at a discount relative to its peers’ historical averages.

Institutional Holdings and Market Sentiment

Institutional investors hold a significant stake in ACC Ltd, with 27.75% of shares owned by entities with greater analytical resources and market insight. This level of institutional participation often reflects confidence in the company’s fundamentals despite recent price pressures.

However, the stock has consistently underperformed its benchmark indices over the last three years, including the BSE500, compounding the challenges faced by shareholders. The PEG ratio of 0.1 indicates that the stock’s price decline has not kept pace with its profit growth, which has increased by 75.6% over the past year.

Technical and Sectoral Considerations

From a technical perspective, ACC Ltd’s position below all major moving averages suggests a continuation of the current downtrend in the near term. The narrow trading range in recent sessions points to subdued volatility but also limited buying interest at current levels.

The cement sector, to which ACC belongs, has faced mixed performance amid fluctuating demand and input cost pressures. ACC’s underperformance relative to its sector peers and the broader market underscores the challenges in regaining momentum.

Summary of Key Metrics

To summarise, ACC Ltd’s stock has reached a new 52-week low of Rs.1722.05, reflecting a sustained period of price weakness despite solid financial performance in recent reporting periods. The company’s low debt levels, strong profit growth, and attractive valuation metrics contrast with its subdued share price performance and technical indicators.

While the broader market and sector indices maintain positive momentum, ACC Ltd’s relative underperformance and trading below all major moving averages highlight the challenges it currently faces in regaining investor confidence.

Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Saving Now →