ACC Ltd.

ACC Limited is India ’s leading manufacturer of cement, mainly into Bulk Cement and Ready Mix Concrete. In CY09, the company?s improved operational efficiency helped to gain a decent performance, despite lower volumes and reported 33% jump in its net profit. The net sales were up by 10% and OPM improved by 230 bps to 23.6%.

Currently, the total capacity of the company stands to 26 MMTPA. Bargarh expansion project in Orissa is on the way to be completed by March 2010 with an expanded capacity of 2.1 MMTPA. The other major project at Chanda in Maharashtra, which comprises a new line of 3 MMTPA of cement, is expected to be completed by the quarter ended September 2010.

Going forward, on account of strong infrastructure and real estate development, we expect a strong demand for cement and ACC with its pan India presence would get an advantage of the same.

Technically, ACC, after making a low in Jan 2009 near 560, took a one way really to make a high of 985+ and from there; it is taking a small correction. The stock has multiple support between the level of 725-750, where one can accumulate the stock for higher targets of 1050+. The stop loss would be a closing below 720.