ACC Receives 'Hold' Rating from MarketsMOJO, Despite Potential for Growth

ACC, a leading player in the cement industry, has recently received a 'Hold' rating from MarketsMOJO on October 14, 2024. This upgrade comes as the company has shown a low Debt to Equity ratio (avg) of 0 times and an attractive valuation with a 2.7 Price to Book Value and ROE of 12.9.
Despite the stock trading at a discount compared to its average historical valuations, it has generated a return of 15.21% in the past year, with profits rising by 158.4%. The PEG ratio of the company is also at a low of 0.1, indicating a potential for growth.

However, the company has shown poor long-term growth with Net Sales growing at an annual rate of 5.28% and Operating profit at 4.54% over the last 5 years. In the latest quarter, the company's PAT(Q) has fallen by -31.4% and PBT LESS OI(Q) has fallen by -18.6%. The DPR(Y) is also at its lowest at 6.03%.

Institutional holdings in the company are at a high of 30.09%, indicating that these investors have better capability and resources to analyze the fundamentals of the company compared to retail investors.

Technically, the stock is in a mildly bearish range with factors like MACD, Bollinger Band, and KST all pointing towards a bearish trend. In the last year, the stock has underperformed the market (BSE 500) with a return of 15.21% compared to the market's return of 35.61%.

Overall, while ACC may have potential for growth, it is currently recommended to hold the stock due to its poor long-term growth and bearish technical indicators. Investors should keep an eye on the company's performance in the coming quarters to make informed decisions.