ACC's Financial Performance Declines, MarketsMOJO Rates Stock as 'Sell'

ACC, a leading cement company in the largecap industry, has recently declared its financial results for the quarter ending September 2024. However, the news is not positive as the company has seen a decline in its financial performance. According to MarketsMOJO, the stock call for ACC is 'Sell'.

The company's financial score has fallen from 3 to -14 in the last 3 months, indicating a negative trend. The profit before tax (PBT) less other income has decreased by 66.2% to Rs 160.45 crore, compared to the average PBT of the previous four quarters which was Rs 475.15 crore. This shows a very negative trend in the near term.

Similarly, the profit after tax (PAT) has also fallen by 55.2% to Rs 224.27 crore, compared to the average PAT of the previous four quarters which was Rs 500.10 crore. The net sales have also decreased by 7.3% to Rs 4,613.52 crore, compared to the average net sales of the previous four quarters which was Rs 4,978.18 crore. This indicates a negative trend in the near term.

The operating profit (PBDIT) for the quarter is at its lowest in the last five quarters, at Rs 436.35 crore. The operating profit margin has also decreased to its lowest at 9.46%, indicating a deterioration in the company's efficiency. The PBT less other income is also at its lowest in the last five quarters, at Rs 160.45 crore.

Moreover, the non-operating income for the quarter is 49.71% of the PBT, which shows that the company's income from non-business activities is high. This is not a sustainable business model and can affect the company's profitability in the long run.

The earnings per share (EPS) for the quarter is also at its lowest in the last five quarters, at Rs 10.62. This shows a declining profitability and the company has created lower earnings for its shareholders. Based on these financial results, MarketsMOJO has given a 'Sell' call for ACC's stock.