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On Wednesday, CLSA analysts adjusted their stance on ACC Ltd (NSE:ACC:IN), downgrading the cement company’s stock rating from Outperform to Hold and revising the price target to INR2,040 from the previous INR2,265. This change in rating and price target reflects the firm’s revised expectations for ACC Ltd’s future financial performance.
The downgrade comes with a specific rationale from the analysts at CLSA. They have increased their projections for the company’s consolidated profit after tax (PAT) for the fiscal years 2026 and 2027 by 5% and 3%, respectively, due to anticipated lower depreciation costs. However, they have simultaneously reduced the target multiple from 10 times to 9 times. The analysts express a belief that organic growth for ACC Ltd is likely to be more pronounced in its sister concern, Ambuja Cements (NSE:ABUJ), which has influenced their decision to adjust the target price and the stock rating.
CLSA’s analysis suggests a strategic preference within the sector. They recommend focusing on companies that are leaders in volume growth, which has led them to downgrade ACC Ltd’s stock to a Hold status. By rolling forward their valuation to the fiscal year 2027, CLSA has set the new price target at INR2,040.
The revised price target and rating reflect CLSA’s current outlook on ACC Ltd’s potential within the cement industry, taking into account the company’s growth prospects and market position. This update comes as investors look for guidance on how to navigate the stock within a competitive sector.
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