cement

ACC Limited

ACC · Nifty 50

1,350

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

Sector Positioncement sector. Flow: neutral. is not among current leaders. Regime: BROAD EXPANSION (73%).
Fundamental Score55/100 (ADEQUATE). 4 positive flags, 3 concerns.
Historical Context74 similar technical setups. Average outcome: -7.3% decline. 0% positive.

Fundamental

55/100

ADEQUATE

Trust

95/100

Verification

Coverage

44/100

LIMITED

Quick Take

ACC Limited scores 55/100 on fundamentals (adequate). ACC Limited: BROAD EXPANSION regime.

Fundamental Score: 55/100 · ADEQUATE · 1 signals detected

DuPont Analysis

ROE 8.6% broken into three drivers. Each shows how efficiently the company generates returns.

ROE8.6%=
6.9%Net Margin
×
0.9xTurnover
×
1.3xLeverage

ROE of 8.6% is modest efficiency-driven and stable. Net margin of 6.9% × asset turnover of 0.93x × leverage of 1.3x.

What This Means

Net margin of 6.9% means the company keeps ₹6.9 as profit for every ₹100 of revenue. This is a moderate-margin business. Asset turnover of 0.93x means the company efficiently uses its assets to generate revenue. Leverage of 1.3x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.

Margin Structure

Gross

57.0%

Operating

9.3%

Net

6.9%

declining

Gross margin 57.0% → operating margin 9.3% → net margin 6.9%. Margins are DECLINING. Check if input costs are rising or competition is pressuring pricing.

Financial Health

Earnings Quality

WEAK

Cash flow only covers -0.8x of net income — earnings quality is WEAK. Profit may not be converting to cash. Check receivables and inventory.

Debt Sustainability

COMFORTABLE

Interest covered 24.5x — very comfortable. Debt service is not a concern. Debt/EBITDA at 0.2x is low — balance sheet has capacity.

Free Cash Flow

MODERATE

FCF margin negative at -10.9% — spending more than earning. Check capex cycle.

Peer Comparison

ACC Limited is compared against 5 peers in the cement sector.

Key Watchpoints

🟢

Breaks above ₹1418 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹1282 (-5%)

Further downside risk

🟢

Cement sector entering leadership

Sector rotation signal

Detected Patterns

⚠️ Low Earnings Quality: Cash flow only -0.8x earnings — weak cash conversion

Risk Flags

🔴 2 Critical⚠️ 1 Warning4 Positive7 total flags
🔴Cash covers only 9% of current liabilities
Balance Sheet

Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.

🔴Operating cash flow significantly below net income
Cash Flow

OCF is only -0.8x net income. Profit not converting to cash — aggressive accounting possible.

⚠️Working capital changes are 342% of operating cash flow
Cash Flow

Working capital is consuming significant cash. Operational efficiency declining.

Minimal unusual items — clean earnings
Earnings Quality

Profits are from core operations, not one-offs. High quality.

Receivables decreasing — 10.5% of revenue
Cash Flow

Collection cycle changing. Collection improving — positive for cash flow.

High promoter holding: 57%
Governance

Strong insider alignment. Promoters have significant skin in the game.

Price/Sales: 1.0x — reasonable revenue multiple
Valuation

Company not overvalued on revenue basis.

🔴 2 CRITICAL flags — significant concerns. Investigate before investing.

Data Quality

95/100All ratios self-computed from verified sources. 🟢 5 years of financial data — sufficient for trend analysis

News Correlation

margin pressure (4)management outlook (4)
Our margin analysis (declining) matches news reports of cost/margin pressure

50 articles scanned for fundamental themes

Facts

P/E Ratio
11.5UNAVAILABLE
P/B Ratio
1.2HIGH
Market Cap
₹2509964.6L CrHIGH
From 52W High
67% of high
Sector Peers
5
ACC Limited Stock Analysis, Valuation, Fundamentals & Intelligence | FynSight