Security Analysis &

Portfolio Management

ACC Ltd
Nirmi Parikh - 40
 Agenda
• Industry Overview
• Company Overview
• Financial Analysis
• Ratio Interpretation
• Technical Analysis
• Recommendation/Conclusion
 Industry Overview

• The cement industry comprises of 125 large cement plants with an

installed capacity of 148.28 million tonnes and more than 300 mini
cement plants with an estimated capacity of 11.10 million tonnes
per annum.
• Presently 93 per cent of the total capacity in the industry is based on
modern and environment-friendly dry process technology and only
7 per cent of the capacity is based on old wet and semi-dry process
technology.
• The Cement Corporation of India, which is a Central Public Sector
Undertaking, has 10 units. There are 10 large cement plants owned
by various State Governments
• The total installed capacity in the country as a whole is 159.38 million
tones
Top Leading Companies
of World.
Sector Wise Allocation
Distribution Cost In Producing
Cement
Market overview
Market Segment
Key Players
 The impact of the Union
Budget 2010
• Excise duty has been increased by 2 per cent.
•
• The Budget has allocated US$ 36.16 billion to India’s infrastructure
development. Heightened focus on railways, housing, urban
infrastructure and continued easy financing of the projects is
expected to give impetus to the construction sector.
•
• Further, the additional deduction available for investment in long-
term infrastructure bonds for individuals is expected to speed up
the execution of infrastructure projects.

 Company Analysis

• ACC was formed in 1936 when ten existing cement companies

came together under one umbrella in a historic merger.


• The use of the plural in ACC's original name, The Associated

Cement Companies Limited, itself indicated the company's
origins from a merger.


• F. E. Dinshaw – the founder of ACC



• Headquarters in Mumbai, India



• Products-Ordinary Portland Cements, Fly- Ash based Portland

Pozzoloana cement,Portland slag cement
•

Financial Analysis
Ratio Interpretations
Technical Analysis
 Recommendations
• Investors should buy the stock.
•
• Likely to increase share price to Rs 1500/ share
•
• Since Government’s continued thrust on infrastructure and its
stimulus packages to boost rural and other sectors are likely to
accelerate construction activity. It is, therefore, expected that
the demand for cement will grow steadily in the next few
years.


• Real estate started booming after recession and so the demand of

cement will grew up.


• Even the common wealth approaching India, the demand of

cement sector has gone up due to infrastructure growth in