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Friday, October 21, 2016

ACC profit is Likely to be up by 46% in Q2


ACCACC, Cement maker, second quarter (July-September) profit is seen increasing 46 per cent at Rs 168 crore on the back of better operational performance and lower depreciation expenses.
Today, ACC share price opened at Rs. 1,612, a tad higher than its previous close of Rs. 1,609.45.
Total income from operations in Q2 decline 5 per cent to Rs 2,639 crore on yearly basis due to weak volumes and weak realizations. ACC has Pan-India presence. The company may see lower volumes due to monsoon and a decline in market share. Cement sales Volumes are likely fall 3.6 per cent at 5.4 million tons as compared to 5.61 million tons Year on Year.
At 12:13 PM, Acc share price was trading at Rs. 1,600.10 with a decline of 0.58% as compared to 0.39% decline in the Benchmark Index Nifty and 0.48% decline in the BSE S&P Sensex. So far, 97 thousand shares have changed hands over the NSE trading counter.
All India cement prices were marginally up on a Year on Year basis and increased 3 per cent Quarter on Quarter. Central & north prices surged 7 percent to 10 percent Year on Year while East, South and West India prices were down. Operating profit during the quarter is anticipated to rise 12 per cent to Rs 350 crore and margin may increase 210 basis points to 13.3 percent Year on Year due to low base.
Key issues to watch out for: Cement pricing recovery, Volume growth and demand revival, Update on cost-saving measures, Update on progress of the East capacity Additions, and Updates on merger synergies with Ambuja Cements.
ACC is the top 500 share for the quarter, picked from among 1700 stocks by Dynamic Levels. This means ACC has strong fundamentals ans has has not made any losses in last 2 quarters. The company’s debt equity is less than 2 (not applicable for NBFC and banks) and pledge is less than 25%. ACC is safe for investment. For the levels of support and resistance on ACC, visitACC share price forecast page of Dynamic Levels website.

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