'Buy' ACC Cement, 'Accumulate' Shree Cement, Ramco Cement And UltraTech Cement's Stocks Says DRChoksey

Deven Choksey Research Report

ACC | Target: Rs 2,790 | Rating: Buy | Upside: 27.6%

Key Q2 FY25 updates include-

1. Commissioning of the Sindri plant, contributing 1.6 million tonnes per annum by Q4 FY25E, and Salai Banwa with a capacity of 2.4 mtpa, taking the total consolidated capacity to 40.2 mtpa,

2. anticipated improvement in demand in H2 FY25E, driven by a post-monsoon increase in construction and housing activity.

ACC volume grew to 9.3 mt, up 14.8% YoY (- 8.8% QoQ).

Realization declined to Rs 4,961/ton (-9.4% YoY/-1.8% QoQ), while Ebitda/tonne declined to Rs 469/ton, down 30.8% YoY (-29.5% QoQ).

UltraTech Cement | Target: Rs 12,063 | Rating: Accumulate | Upside: 12.0%

Key Q2 FY25 updates include-

1. Commissioned 8.7 mtpa, with an additional 1.2 mtpa in October 2024, taking consolidated capacity to 156.1 mtpa,

2. awaiting regulatory approvals for Kesoram Industries and India Cement,

3. Current waste heat recovery system capacity of 308 MW, expected to reach 450 MW by FY27E.

UltraTech Cement volume grew to 27.84 mt, up 4.3% YoY (-12.9% QoQ). Realization declined to Rs 4,901 (-8.4% YoY/ -2.9% QoQ) while Ebitda/tonne declined to Rs 725 (Rs 956 in Q2 FY24).

The company has earmarked a capex of Rs 80,000 – Rs 90,000 million for FY25E.

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