FINANCIAL

MODEL
About the Company
ACC Limited (incorporated in 1936), a member of the LafargeHolcim Group, is principally engaged in the business of manufacturing and
selling of Cement and Ready Mix Concrete. The Company has manufacturing facilities across India and caters mainly to domestic market.
The company has a manufacturing capacity of ~ 34.5 MMTPA from its 17 cement plants and 79 Ready mix concrete plants across India.
The company also operates 8 captive power plants for power requirements of its cement plants.
The products include: Cement, Ready Mix Concrete, Construction Chemicals and Dry Mix Range - For Retail Customers & For Institutional
Customers. They deal 79% in Retail and 21% in wholesale.
Ambuja Cements Limited (50%) is the holding Company of ACC Ltd and LafargeHolcim Ltd is the Parent company for the Group.
ACC and Ambuja cement together have 12-13% capacity share in the Indian cement market.
ACC was formed in 1936 when ten existing cement companies came together under one umbrella in a historic merger. In 1947, India’s
first entirely indigenous cement plant was established in Bihar. Later in 1965, ACC started manufacturing Portland Pozzolana Cement.
In 1973, the co. took over The Cement Marketing Company of India (CMI). In 2005, ACC became part of the Holcim Group of Switzerland.
Subsequently, in 2015, Holcim and Lafarge came together in a merger to form LafargeHolcim – the global leader in building materials
and solutions.

The Model Includes :

Historical Financial Statement
Common Size Statement
Ratio Analysis
Forecasted Growth of - Sales , EBITDA and EPS
Return Of Market
Intrinsic Growth Rate
Calculation of ROIC
Calculation of WACC
Calculation of PV of FCFF
Comparable Company Valuation
Regression Analysis

DISCLAIMER: This model is made as a part of education assignment and is meant for educational purpose only. The author of the report
is not liable for any losses due action taken based on this report. It is advisable to consult SEBI registered research analyst before
making any investment.
--PRATHAM GARG
 Historical Financial Statement-ACC LTD
Years Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Mar-23

# Income Statement
Sales ₹ 11,061.8 ₹ 11,645.5 ₹ 11,706.4 ₹ 10,989.7 ₹ 13,285.1 ₹ 14,801.6 ₹ 15,657.6 ₹ 13,786.0 ₹ 16,151.7 ₹ 22,210.2
Sales Growth 0 5.28% 0.52% -6.12% 20.89% 11.41% 5.78% -11.95% 17.16% 37.51%

COGS ₹ 5,791.6 ₹ 6,172.2 ₹ 8,663.7 ₹ 5,378.3 ₹ 6,359.4 ₹ 7,124.7 ₹ 7,629.9 ₹ 6,657.3 ₹ 7,903.6 ₹ 13,265.4
COGS % sales 52.36% 53.00% 74.01% 48.94% 47.87% 48.13% 48.73% 48.29% 48.93% 59.73%

Gross Margin ₹ 5,270.2 ₹ 5,473.3 ₹ 3,042.7 ₹ 5,611.4 ₹ 6,925.7 ₹ 7,676.9 ₹ 8,027.6 ₹ 7,128.7 ₹ 8,248.1 ₹ 8,944.8
Gross Margin % 47.64% 47.00% 25.99% 51.06% 52.13% 51.87% 51.27% 51.71% 51.07% 40.27%

Selling and other expenses ₹ 3,624.3 ₹ 3,944.1 ₹ 1,459.7 ₹ 4,153.4 ₹ 5,010.4 ₹ 5,628.8 ₹ 5,614.9 ₹ 4,773.6 ₹ 5,250.0 ₹ 7,019.9
S&G Exp % sales 32.76% 33.87% 12.47% 37.79% 37.71% 38.03% 35.86% 34.63% 32.50% 31.61%

EBIDA ₹ 1,645.8 ₹ 1,529.2 ₹ 1,583.0 ₹ 1,458.0 ₹ 1,915.4 ₹ 2,048.1 ₹ 2,412.8 ₹ 2,355.1 ₹ 2,998.1 ₹ 1,924.9
EBIDA % sales 14.88% 13.13% 13.52% 13.27% 14.42% 13.84% 15.41% 17.08% 18.56% 8.67%

Interest ₹ 113.6 ₹ 82.8 ₹ 64.6 ₹ 78.7 ₹ 98.5 ₹ 87.8 ₹ 86.3 ₹ 57.1 ₹ 54.6 ₹ 77.3
Interest % sales 1.03% 0.71% 0.55% 0.72% 0.74% 0.59% 0.55% 0.41% 0.34% 0.35%

Depreciation ₹ 583.8 ₹ 567.6 ₹ 662.6 ₹ 609.2 ₹ 643.6 ₹ 603.2 ₹ 606.4 ₹ 638.8 ₹ 600.7 ₹ 841.3
Depreciation % sales 5.28% 4.87% 5.66% 5.54% 4.84% 4.08% 3.87% 4.63% 3.72% 3.79%

Earning before Tax ₹ 948.5 ₹ 878.8 ₹ 855.8 ₹ 770.2 ₹ 1,173.2 ₹ 1,357.1 ₹ 1,720.1 ₹ 1,659.2 ₹ 2,342.8 ₹ 1,006.3
EBT % 8.57% 7.55% 7.31% 7.01% 8.83% 9.17% 10.99% 12.04% 14.50% 4.53%

Tax ₹ 131.9 (₹ 31.1) ₹ 190.0 ₹ 226.9 ₹ 385.6 (₹ 10.5) ₹ 675.0 ₹ 278.6 ₹ 643.3 ₹ 317.4
Effective Tax Rate 13.91% -3.54% 22.20% 29.46% 32.86% -0.77% 39.24% 16.79% 27.46% 31.54%

Net Profit ₹ 816.6 ₹ 909.9 ₹ 665.8 ₹ 543.3 ₹ 787.7 ₹ 1,367.6 ₹ 1,045.1 ₹ 1,380.6 ₹ 1,699.5 ₹ 688.9
Net Margin 7.38% 7.81% 5.69% 4.94% 5.93% 9.24% 6.67% 10.01% 10.52% 3.10%

Number of Equity Shares ₹ 18.8 ₹ 18.8 ₹ 18.8 ₹ 18.8 ₹ 18.8 ₹ 18.8 ₹ 18.8 ₹ 18.8 ₹ 18.8 ₹ 18.8
EPS ₹ 43.5 ₹ 48.5 ₹ 35.5 ₹ 28.9 ₹ 41.9 ₹ 72.8 ₹ 55.6 ₹ 73.5 ₹ 90.5 ₹ 36.7
EPS % growth 11.43% -26.83% -18.44% 44.98% 73.63% -23.58% 32.10% 23.10% -59.46%

Dividend per Share ₹ 30.0 ₹ 34.0 ₹ 17.0 ₹ 17.0 ₹ 26.0 ₹ 14.0 ₹ 14.0 ₹ 14.0 ₹ 58.1 ₹ 9.3
Divident Payout Ratio 69.05% 70.23% 47.99% 58.82% 62.05% 19.24% 25.18% 19.06% 64.16% 25.24%

Retained Earning 30.95% 29.77% 52.01% 41.18% 37.95% 80.76% 74.82% 80.94% 35.84% 74.76%

# Balance Sheet
Equity Share Capital ₹ 188.0 ₹ 188.0 ₹ 188.0 ₹ 188.0 ₹ 188.0 ₹ 188.0 ₹ 188.0 ₹ 188.0 ₹ 188.0 ₹ 188.0
Reserves ₹ 7,625.4 ₹ 8,029.7 ₹ 8,233.2 ₹ 8,625.4 ₹ 9,167.9 ₹ 10,343.9 ₹ 11,355.8 ₹ 12,511.1 ₹ 14,120.8 ₹ 13,950.5
Borrowings ₹ 35.0 - - - - - - ₹ 102.5 ₹ 125.6 ₹ 153.0
Other Liabilities ₹ 4,252.7 ₹ 4,464.0 ₹ 4,378.8 ₹ 4,580.5 ₹ 5,489.9 ₹ 5,524.1 ₹ 5,592.2 ₹ 5,398.6 ₹ 6,604.4 ₹ 6,252.3
Total Liabilites ₹ 12,101.1 ₹ 12,681.6 ₹ 12,800.0 ₹ 13,393.9 ₹ 14,845.7 ₹ 16,056.0 ₹ 17,136.0 ₹ 18,200.2 ₹ 21,038.8 ₹ 20,543.8

Fixed Assests Net Block ₹ 5,570.0 ₹ 5,666.0 ₹ 5,330.8 ₹ 7,567.8 ₹ 7,280.1 ₹ 7,088.2 ₹ 7,026.7 ₹ 6,694.4 ₹ 6,749.8 ₹ 7,511.9
Capital Work in Progress ₹ 832.2 ₹ 1,955.9 ₹ 2,396.1 ₹ 261.0 ₹ 269.3 ₹ 397.8 ₹ 445.7 ₹ 548.1 ₹ 1,216.4 ₹ 1,684.0
Investments ₹ 2,125.6 ₹ 1,385.2 ₹ 1,314.2 ₹ 117.2 ₹ 94.9 ₹ 104.1 ₹ 116.2 ₹ 129.3 ₹ 149.6 ₹ 163.3
Other Assets ₹ 1,548.1 ₹ 1,697.8 ₹ 1,991.0 ₹ 1,713.0 ₹ 2,402.3 ₹ 2,822.2 ₹ 3,131.1 ₹ 3,470.0 ₹ 3,664.6 ₹ 8,276.4
Total Non Current Assests ₹ 10,075.9 ₹ 10,704.9 ₹ 11,032.1 ₹ 9,659.0 ₹ 10,046.4 ₹ 10,412.2 ₹ 10,719.7 ₹ 10,841.9 ₹ 11,780.3 ₹ 17,635.6

Receivables ₹ 397.2 ₹ 410.6 ₹ 484.4 ₹ 533.2 ₹ 666.0 ₹ 867.4 ₹ 626.7 ₹ 451.4 ₹ 462.3 ₹ 869.2
Inventory ₹ 1,122.3 ₹ 1,256.4 ₹ 1,189.4 ₹ 1,224.6 ₹ 1,404.8 ₹ 1,679.4 ₹ 1,141.9 ₹ 901.3 ₹ 1,273.9 ₹ 1,624.2
Cash & Bank ₹ 505.7 ₹ 309.8 ₹ 94.0 ₹ 1,977.2 ₹ 2,728.6 ₹ 3,097.0 ₹ 4,647.7 ₹ 6,005.7 ₹ 7,522.4 ₹ 414.7
Total Current Assets ₹ 2,025.2 ₹ 1,976.8 ₹ 1,767.9 ₹ 3,735.0 ₹ 4,799.3 ₹ 5,643.7 ₹ 6,416.3 ₹ 7,358.4 ₹ 9,258.6 ₹ 2,908.2

Total Assests ₹ 12,101.1 ₹ 12,681.6 ₹ 12,800.0 ₹ 13,393.9 ₹ 14,845.7 ₹ 16,056.0 ₹ 17,136.0 ₹ 18,200.2 ₹ 21,038.8 ₹ 20,543.8

check TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE

# Cash Flow Statement

Cash from Operating Activity
Profit from operations ₹ 1,703.0 ₹ 1,530.0 ₹ 1,636.0 ₹ 1,480.0 ₹ 1,864.0 ₹ 2,036.0 ₹ 2,432.0 ₹ 2,538.0 ₹ 2,991.0 ₹ 1,840.0
Receivables (₹ 300.0) (₹ 192.0) (₹ 219.0) (₹ 70.0) (₹ 779.0) (₹ 268.0) ₹ 219.0 ₹ 138.0 (₹ 27.0) (₹ 422.0)
Inventory (₹ 6.0) (₹ 148.0) ₹ 59.0 (₹ 48.0) (₹ 174.0) (₹ 279.0) ₹ 531.0 ₹ 232.0 (₹ 379.0) (₹ 283.0)
Payables ₹ 118.0 ₹ 400.0 ₹ 212.0 ₹ 301.0 ₹ 862.0 ₹ 157.0 (₹ 442.0) (₹ 47.0) ₹ 489.0 (₹ 403.0)
Loans Advances - - - - - - ₹ 74.0 - - -
Other WC items - - - - - - (₹ 112.0) ₹ 65.0 ₹ 47.0 (₹ 1,563.0)
Working capital changes (₹ 189.0) ₹ 60.0 ₹ 52.0 ₹ 183.0 (₹ 91.0) (₹ 391.0) ₹ 270.0 ₹ 388.0 ₹ 130.0 (₹ 2,671.0)
Direct taxes (₹ 451.0) (₹ 237.0) (₹ 231.0) (₹ 274.0) (₹ 219.0) (₹ 528.0) (₹ 447.0) (₹ 707.0) (₹ 286.0) (₹ 404.0)
Cash from Operating Activity ₹ 875.0 ₹ 1,413.0 ₹ 1,509.0 ₹ 1,572.0 ₹ 1,463.0 ₹ 727.0 ₹ 2,525.0 ₹ 2,607.0 ₹ 2,965.0 (₹ 3,906.0)

Investing Activity
Fixed assets purchased (₹ 970.0) (₹ 1,606.0) (₹ 1,124.0) (₹ 522.0) (₹ 535.0) (₹ 520.0) (₹ 549.0) (₹ 749.0) (₹ 1,175.0) (₹ 2,105.0)
Fixed assets sold ₹ 7.0 ₹ 3.0 ₹ 4.0 ₹ 21.0 ₹ 14.0 ₹ 23.0 ₹ 54.0 ₹ 1.0 ₹ 22.0 ₹ 124.0
Investments purchased - - - - - - - (₹ 4.0) (₹ 10.0) -
Investments sold ₹ 61.0 ₹ 43.0 ₹ 24.0 ₹ 23.0 ₹ 64.0 ₹ 36.0 ₹ 22.0 ₹ 16.0 ₹ 10.0 ₹ 17.0
Interest received ₹ 161.0 ₹ 125.0 ₹ 63.0 ₹ 65.0 ₹ 70.0 ₹ 92.0 ₹ 177.0 ₹ 187.0 ₹ 177.0 ₹ 215.0
Dividends received ₹ 7.0 ₹ 10.0 ₹ 2.0 ₹ 8.0 ₹ 5.0 ₹ 1.0 ₹ 2.0 - ₹ 2.0 ₹ 2.0
Invest in subsidiaries - - - - - - - - - -
Redemp n Canc of Shares - - - - - - - ₹ 20.0 - -
Other investing items (₹ 128.0) (₹ 32.0) ₹ 127.0 (₹ 129.0) ₹ 3.0 ₹ 5.0 (₹ 27.0) (₹ 6.0) (₹ 12.0) (₹ 2,891.0)
Cash from Investing Actity (₹ 862.0) (₹ 1,457.0) (₹ 904.0) (₹ 534.0) (₹ 379.0) (₹ 363.0) (₹ 321.0) (₹ 535.0) (₹ 986.0) (₹ 4,638.0)

Financing Activity
Proceeds from shares - - - - - - - - - -
Repayment of borrowings (₹ 128.0) (₹ 35.0) - - - - - - - -
Interest paid fin (₹ 51.0) (₹ 49.0) (₹ 41.0) (₹ 46.0) (₹ 42.0) (₹ 41.0) (₹ 57.0) (₹ 40.0) (₹ 32.0) (₹ 60.0)
Dividends paid (₹ 560.0) (₹ 645.0) (₹ 562.0) (₹ 319.0) (₹ 319.0) (₹ 282.0) (₹ 263.0) (₹ 263.0) (₹ 263.0) (₹ 1,089.0)
Financial liabilities - - - - - - - (₹ 25.0) (₹ 36.0) (₹ 89.0)
Other financing items (₹ 96.0) (₹ 108.0) (₹ 113.0) (₹ 65.0) (₹ 65.0) (₹ 58.0) (₹ 54.0) - - -
Cash from financing activity (₹ 835.0) (₹ 837.0) (₹ 716.0) (₹ 430.0) (₹ 426.0) (₹ 381.0) (₹ 374.0) (₹ 328.0) (₹ 331.0) (₹ 1,238.0)

Net Cash Flow (₹ 822.0) (₹ 881.0) (₹ 111.0) ₹ 608.0 ₹ 658.0 (₹ 17.0) ₹ 1,830.0 ₹ 1,744.0 ₹ 1,648.0 (₹ 9,782.0)
 Common Size Income Statement - ACC Ltd

Particulars Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Mar-23

Sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Raw Material Cost 16.00% 17.02% 15.79% 14.47% 14.91% 16.60% 16.72% 17.19% 18.83% 25.42%
Change in Inventory -0.06% 0.10% 0.00% -0.15% 0.11% 0.84% -0.64% -1.03% 1.08% 0.87%
Power and Fuel 21.50% 20.99% 20.47% 19.65% 20.45% 20.27% 20.02% 18.68% 20.83% 25.86%
Other Mfr. Exp 8.81% 8.67% 31.15% 7.78% 6.44% 6.13% 5.82% 5.29% 5.18% 4.65%
Employee Cost 5.99% 6.42% 6.60% 6.89% 6.18% 5.97% 5.53% 6.10% 5.18% 4.67%
Selling and admin 26.22% 27.67% 6.17% 30.74% 32.14% 32.96% 31.25% 29.29% 29.14% 27.95%
Other Expenses 6.55% 6.20% 6.30% 7.06% 5.57% 5.07% 4.61% 5.33% 3.37% 3.65%
Other Income 2.40% 2.07% -0.77% 1.05% 1.03% 1.03% 2.12% 0.36% 1.01% 0.88%
Depreciation 5.28% 4.87% 5.66% 5.54% 4.84% 4.08% 3.87% 4.63% 3.72% 3.79%
Interest 1.03% 0.71% 0.55% 0.72% 0.74% 0.59% 0.55% 0.41% 0.34% 0.35%
Profit before tax 10.97% 9.61% 6.54% 8.06% 9.86% 10.20% 13.11% 12.40% 15.52% 5.41%
Tax 1.19% -0.27% 1.62% 2.06% 2.90% -0.07% 4.31% 2.02% 3.98% 1.43%
Net profit 9.90% 9.98% 5.02% 5.99% 6.96% 10.27% 8.80% 10.37% 11.53% 3.98%
Dividend Amount 5.10% 5.49% 2.73% 2.91% 3.68% 1.78% 1.68% 1.91% 6.75% 0.78%
EBITDA 17.39% 15.29% 12.85% 14.31% 15.45% 14.87% 17.53% 17.44% 19.57% 9.55%

Common Size Balance Sheet - ACC Ltd

Particulars Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Mar-23

Total Liabilites 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Equity Share Capital 1.55% 1.48% 1.47% 1.40% 1.27% 1.17% 1.10% 1.03% 0.89% 0.92%
Reserves 63.01% 63.32% 64.32% 64.40% 61.75% 64.42% 66.27% 68.74% 67.12% 67.91%
Borrowings 0.29% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.56% 0.60% 0.74%
Other Liabilities 35.14% 35.20% 34.21% 34.20% 36.98% 34.41% 32.63% 29.66% 31.39% 30.43%

Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Net Block 46.03% 44.68% 41.65% 56.50% 49.04% 44.15% 41.01% 36.78% 32.08% 36.57%
Capital Work in Progress 6.88% 15.42% 18.72% 1.95% 1.81% 2.48% 2.60% 3.01% 5.78% 8.20%
Investments 17.57% 10.92% 10.27% 0.87% 0.64% 0.65% 0.68% 0.71% 0.71% 0.79%
Other Assets 12.79% 13.39% 15.55% 12.79% 16.18% 17.58% 18.27% 19.07% 17.42% 40.29%
Receivables 3.28% 3.24% 3.78% 3.98% 4.49% 5.40% 3.66% 2.48% 2.20% 4.23%
Inventory 9.27% 9.91% 9.29% 9.14% 9.46% 10.46% 6.66% 4.95% 6.06% 7.91%
Cash & Bank 4.18% 2.44% 0.73% 14.76% 18.38% 19.29% 27.12% 33.00% 35.75% 2.02%
 Ratio Analysis of ACC Ltd
Years Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Mar-23 Trends Mean Median

SalesGrowth 0 5.28% 0.52% -6.12% 20.89% 11.41% 5.78% -11.95% 17.16% 37.51% 8.94% 5.78%
EBITDA Growth 0 -7.09% 3.52% -7.89% 31.37% 6.93% 17.80% -2.39% 27.30% -35.79% 3.75% 3.52%
EBIT Growth 0 -7.35% -2.62% -10.00% 52.33% 15.68% 26.74% -3.54% 41.20% -57.05% 6.15% -2.62%
Net Profit Growth 0 11.43% -26.83% -18.40% 44.98% 73.63% -23.58% 32.10% 23.10% -59.46% 6.33% 11.43%
Dividend Growth 0 13.33% -50.00% -0.03% 52.94% -46.15% 0.00% 0.00% 314.28% -84.05% 22.26% 0.00%

Gross Margin 47.64% 47.00% 25.99% 51.06% 52.13% 51.87% 51.27% 51.71% 51.07% 40.27% 47.00% 51.06%
EBITDA Margin 14.88% 13.13% 13.52% 13.27% 14.42% 13.84% 15.41% 17.08% 18.56% 8.67% 14.28% 14.13%
EBIT Margin 9.60% 8.26% 7.86% 7.72% 9.57% 9.76% 11.54% 12.45% 14.84% 4.88% 9.65% 9.59%
EBT Margin 8.57% 7.55% 7.31% 7.01% 8.83% 9.17% 10.99% 12.04% 14.50% 4.53% 9.05% 8.70%
Net Profit Margin 7.38% 7.81% 5.69% 4.94% 5.93% 9.24% 6.67% 10.01% 10.52% 3.10% 7.13% 7.03%

SalesExpenses %sales 32.76% 33.87% 12.47% 37.79% 37.71% 38.03% 35.86% 34.63% 32.50% 31.61% 32.72% 34.25%
Depreciation %sales 5.28% 4.87% 5.66% 5.54% 4.84% 4.08% 3.87% 4.63% 3.72% 3.79% 4.63% 4.74%
OperatingIncome %sales 9.60% 8.26% 7.86% 7.72% 9.57% 9.76% 11.54% 12.45% 14.84% 4.88% 9.65% 9.59%

Returned on capital employed 13.53% 11.70% 10.93% 9.63% 13.59% 13.72% 15.65% 13.41% 16.61% 7.58% 12.64% 13.47%
Retained earnings% 30.95% 29.77% 52.01% 41.18% 37.95% 80.76% 74.82% 80.94% 35.84% 74.76% 53.90% 46.59%
Return on Equity% 10.45% 11.07% 7.91% 6.16% 8.42% 12.99% 9.05% 10.87% 11.88% 4.87% 9.37% 9.75%
Self Sustained Growth Rate 3.23% 3.30% 4.11% 2.54% 3.19% 10.49% 6.77% 8.80% 4.26% 3.64% 5.03% 3.88%
Interest Coverage Ratio 9.35x 11.62x 14.24x 10.79x 12.91x 16.46x 20.94x 30.07x 43.89x 14.02x 18.43x 1413.03%

Debtor Turover Ratio 27.85x 28.36x 24.17x 20.61x 19.95x 17.06x 24.99x 30.54x 34.94x 25.55x 25.40x 25.27x
Creditor Turnover Ratio 2.60x 2.61x 2.67x 2.40x 2.42x 2.68x 2.80x 2.55x 2.45x 3.55x 2.67x 2.60x
Inventory Turnover Ratio 9.86x 9.27x 9.84x 8.97x 9.46x 8.81x 13.71x 15.30x 12.68x 13.67x 11.16x 9.85x
Fixed Assests Turnover 1.99x 2.06x 2.20x 1.45x 1.82x 2.09x 2.23x 2.06x 2.39x 2.96x 2.12x 2.07x
Capital turnover 1.42x 1.42x 1.39x 1.25x 1.42x 1.41x 1.36x 1.09x 1.13x 1.57x 1.34x 1.40x

Debtor Days 13 days 13 days 15 days 18 days 18 days 21 days 15 days 12 days 10 days 14 days 15 days 14 days
Payable Days 140 days 140 days 137 days 152 days 151 days 136 days 130 days 143 days 149 days 103 days 138 days 140 days
Inventory Days 37 days 39 days 37 days 41 days 39 days 41 days 27 days 24 days 29 days 27 days 34 days 37 days
Cash Conversion Cycle -90 days -88 days -84 days -94 days -94 days -73 days -89 days -107 days -110 days -62 days -89 days -90 days

CFO/Sales 9.61% 11.61% 12.44% 12.64% 11.70% 7.55% 14.40% 16.10% 17.56% -5.56% 10.81% 12.07%
CFO/Total Assets 8.79% 10.66% 11.38% 10.37% 10.47% 6.96% 13.16% 12.19% 13.48% -6.01% 9.15% 10.57%
CFO/Total Debts 3035.80% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 2165.49% 2257.92% -807.03% 665.22% 0.00%
 ACC Ltd - Sales Forecasting ACC Ltd - EBITDA Forecasting ACC Ltd - EPS Forecasting
Year Weight Year Sales (crores) Sales Growth Year Weight Year EBIDTA EBITDA Growth Year Weight Year EPS EPS Growth
1 2013 A ₹11,061.8 0% 1 2013 A ₹1,645.8 0 1 2013 A ₹43.5 0
2 2014 A ₹11,645.5 5.28% 2 2014 A ₹1,529.2 -7.09% 2 2014 A ₹48.5 11.43%
3 2015 A ₹11,706.4 0.52% 3 2015 A ₹1,583.0 3.52% 3 2015 A ₹35.5 -26.83%
4 2016 A ₹10,989.7 -6.12% 4 2016 A ₹1,458.0 -7.89% 4 2016 A ₹28.9 -18.44%
5 2017 A ₹13,285.1 20.89% 5 2017 A ₹1,915.4 31.37% 5 2017 A ₹41.9 44.98%
6 2018 A ₹14,801.6 11.41% 6 2018 A ₹2,048.1 6.93% 6 2018 A ₹72.8 73.63%
7 2019 A ₹15,657.6 5.78% 7 2019 A ₹2,412.8 17.80% 7 2019 A ₹55.6 -23.58%
8 2020 A ₹13,786.0 -11.95% 8 2020 A ₹2,355.1 -2.39% 8 2020 A ₹73.5 32.10%
9 2021 A ₹16,151.7 17.16% 9 2021 A ₹2,998.1 27.30% 9 2021 A ₹90.5 23.10%
10 2023 A ₹22,210.2 37.51% 10 2023 A ₹1,924.9 -35.79% 10 2023 A ₹36.7 -59.46%
11 2024 E ₹19,389.4 -12.70% 11 2024 E ₹2,642.1 37.26% 11 2024 E ₹70.5 92.31%
12 2025 E ₹20,345.8 4.93% 12 2025 E ₹2,761.2 4.51% 12 2025 E ₹73.8 4.59%
13 2026 E ₹21,302.1 4.70% 13 2026 E ₹2,880.3 4.31% 13 2026 E ₹77.0 4.39%
14 2027 E ₹22,258.5 4.49% 14 2027 E ₹2,999.4 4.14% 14 2027 E ₹80.3 4.20%
15 2028 E ₹23,214.8 4.30% 15 2028 E ₹3,118.5 3.97% 15 2028 E ₹83.5 4.03%

Sales Forecasting EBIDTA Forecasting EPS Forecasting

₹25,000.0 ₹3,500.0
₹100.0
₹3,000.0 ₹90.0
₹20,000.0 ₹80.0
₹2,500.0 ₹70.0
₹15,000.0 ₹60.0
₹2,000.0
₹50.0
₹10,000.0 ₹1,500.0 ₹40.0
₹30.0
₹1,000.0 ₹20.0
₹5,000.0
₹500.0 ₹10.0
₹0.0
₹0.0 ₹0.0 2012 A 2014 A 2016 A 2018 A 2020 A 2022 A 2024 A 2026 A 2028 A 2030 A
0 2 4 6 8 10 12 14 16 2012 A 2014 A 2016 A 2018 A 2020 A 2022 A 2024 A 2026 A 2028 A 2030 A
Amounts in Crores
Comparable Company Valuation
Market Data Financials Valuation
Share Shares Equity Enterprise
Company Price Outstandings Value Net Debt Value Revenue EBITDA Net Income EV/Revenue EV/EBITDA P/E
ACC ₹ 2,042.8 ₹ 18.8 ₹ 38,362.8 -₹ 261.7 ₹ 38,101.2 ₹ 18,516.3 ₹ 3,623.6 ₹ 727.7 2.1x 10.5x 52.7x
Ambuja Cements ₹ 471.8 ₹ 198.6 ₹ 93,670.7 -₹ 2,438.3 ₹ 91,232.4 ₹ 31,728.8 ₹ 7,043.8 ₹ 2,437.9 2.9x 13.0x 38.4x
Shree Cement ₹ 24,224.2 ₹ 3.6 ₹ 87,449.4 ₹ 2,691.8 ₹ 90,141.2 ₹ 17,633.9 ₹ 3,200.5 ₹ 1,593.7 5.1x 28.2x 54.9x
UltraTech Cem. ₹ 8,158.2 ₹ 28.9 ₹ 235,525.8 ₹ 9,908.2 ₹ 245,433.9 ₹ 65,813.1 ₹ 11,569.9 ₹ 5,181.6 3.7x 21.2x 45.5x
J K Cements ₹ 3,209.3 ₹ 7.7 ₹ 24,807.5 ₹ 4,458.9 ₹ 29,266.4 ₹ 9,720.2 ₹ 1,408.5 ₹ 419.1 3.0x 20.8x 59.2x
Nuvoco Vistas ₹ 360.9 ₹ 35.7 ₹ 12,889.6 ₹ 4,582.0 ₹ 17,471.6 ₹ 10,586.2 ₹ 2,111.9 ₹ 15.9 1.7x 8.3x 812.7x
Birla Corpn. ₹ 1,229.0 ₹ 7.7 ₹ 9,462.9 ₹ 4,244.0 ₹ 13,706.9 ₹ 8,682.3 ₹ 891.7 ₹ 40.5 1.6x 15.4x 233.7x

High 5.1x 28.2x 812.7x

75th Percentile 3.4x 21.0x 146.4x
Average 2.9x 16.8x 185.3x
Median 2.9x 15.4x 54.9x
25th Percentile 1.9x 11.7x 49.1x
Low 1.6x 8.3x 38.4x

ACC Comparable Valuation EV/Revenue EV/EBITDA P/E

Implied Enterprise Value 53241.5 55703.3 39667.0
Net Debt -261.7 -261.7 -261.7
Implied Market Value 53503.2 55965.0 39928.6
Shares Outstandings 18.8 18.8 18.8
Implied Value per Share 2848.9 2980.0 2126.1
Source : The Valuation School , Screener.in Undervalued Undervalued Undervalued
 Calculation of ROIC - ACC Ltd Dec-18 Dec-19 Dec-20 Dec-21 Mar-23

Current Assets
Inventories 1,679.0 1,142.0 901.0 1,274.0 1,624.0
Trade receivables 867.0 627.0 451.0 462.0 869.0
Short term loans 5.0 6.0 6.0 7.0 6.0
Other asset items 2,817.0 3,126.0 3,464.0 3,658.0 8,271.0
Total Current Assets 5,368.0 4,901.0 4,822.0 5,401.0 10,770.0

Current Liabilites
Trade Payables 1,926.0 1,475.0 1,422.0 1,905.0 1,493.0
Advance from Customers 227.0 157.0 148.0 252.0 170.0
Other liability items 3,368.0 3,957.0 3,825.0 4,444.0 4,586.0
Total Current Liabilites 5,521.0 5,589.0 5,395.0 6,601.0 6,249.0

# Net Working Capital (153.0) (688.0) (573.0) (1,200.0) 4,521.0

Non Current Assets

Land 480.0 515.0 594.0 631.0 779.0
Building 1,662.0 1,718.0 1,786.0 1,891.0 2,029.0
Plant Machinery 6,311.0 6,707.0 6,932.0 7,391.0 8,534.0
Equipments 59.0 66.0 71.0 85.0 94.0
Furniture n fittings 27.0 30.0 34.0 35.0 46.0
Railway sidings 255.0 259.0 276.0 284.0 301.0
Vehicles 69.0 88.0 95.0 100.0 109.0
Intangible Assets 16.0 16.0 10.0 4.0 4.0
Other fixed assets 49.0 49.0 65.0 74.0 175.0
Gross Block 8,928.0 9,448.0 9,863.0 10,495.0 12,071.0
Accumalated Depriciation (1,839.0) (2,420.0) (3,010.0) (3,574.0) (4,385.0)
# Net Non Current Assets 7,089.0 7,028.0 6,853.0 6,921.0 7,686.0

# Invested Capital 6,936.0 6,340.0 6,280.0 5,721.0 12,207.0

EBIT 1,444.9 1,806.3 1,716.3 2,397.4 1,083.6

# ROIC 20.83% 28.49% 27.33% 41.91% 8.88%

Calculation of Reinvestment rate Dec-18 Dec-19 Dec-20 Dec-21 Mar-23

Net Capex 497.0 495.0 748.0 1,153.0 1,981.0

Change in Working Capital - (535.0) 115.0 (627.0) 5,721.0

EBIT 1,444.9 1,806.3 1,716.3 2,397.4 1,083.6

Marginal Tax Rate 25.00% 25.00% 25.00% 25.00% 25.00%
EBIT(1-T) 1,083.7 1,354.8 1,287.2 1,798.1 812.7

Reinvestment Amount (40.0) 863.0 526.0 7,702.0

Reinvestment Rate -2.95% 67.04% 29.25% 947.70%

4 Year Average 260.26%

4 Year Median 48.15%

Calculation of Intrinsic Growth rate Dec-18 Dec-19 Dec-20 Dec-21 Mar-23

Reinvestment Rate -2.95% 67.04% 29.25% 947.70%

ROIC 28.49% 27.33% 41.91% 8.88%

Intrinsic Growth -0.84% 18.32% 12.26% 84.13%

4 Year Average 28.47%

4 Year Median 15.29%
Weighted Average Cost of Capital

All figures are in INR unless stated it otherwise

Peer Comps
Debt/ Debt/ Levered Unlevered
1 2 3
Name Country Total Debt Total Equity Tax Rate Equity Capital Beta Beta
UltraTech Cem. India 11057.74 239254.58 30.00% 4.62% 4.42% 0.94 0.91
Ambuja Cements India 522.73 91518.39 30.00% 0.57% 0.57% 1.06 1.06
Shree Cement India 2811.13 86756.52 30.00% 3.24% 3.14% 0.93 0.91
Dalmia BharatLtd India 3855 37200.4 30.00% 10.36% 9.39% 1.49 1.39
ACC India 153.04 37017.56 30.00% 0.41% 0.41% 1.11 1.11

Average 30.00% 3.84% 3.59% 110.60% 107.43%

Median 30.00% 3.24% 3.14% 1.06 1.06

Cost of debt Cost of Equity

Pre Tax Cost of Debt 50.33% Risk Free Rate 7.15%

Tax Rate 30.00% Equity Risk Premium 8.29%
4
Post Tax Cost of Debt 35.23% Levered Beta 1.36
Cost of Equity 18.43%

Capital Structure Levered Beta

Current Target Comps Median Unlevered Data 1.06

Total Debt 11057.74 4.42% 3.59% Target Debt / Equity 3.72%
Market Capitalization
239254.58 95.58% 96.41% Tax Rate 30.00%
Total Capital 250312.32 100.00% 100.00% Levered Beta 1.36

Debt / Equity 4.62% 3.72% Weighted Average Cost of Capital

Notes: Cost of Equity 18.43%

1. Tax Rate considered as Marginal Tax Rate for the money Equity Weight 96.41%
2. Leverage Data is based on 5 Year Monthly Data
3. Unlevered Data = Levered Beta/(1+(1-Tax Rate)*Debt/Equity) Cost of Debt 35.23%
4. Levered Data = Unlevered Beta*(1+(1-Tax Rate)*Debt/Equity) Debt Weight 3.59%

WACC 19.04%
Calculation of FCFF - ACC Ltd Mar-23 A Mar-24 F Mar-25 F Mar-26 F Mar-27 F Mar-28 F

EBIT 1279.74 1347.95 1419.80 1495.47 1575.18 1659.14

Tax Rate 25.00% 25.00% 25.00% 25.00% 25.00% 25.00%
EBIT(1-T) 959.81 1010.96 1064.85 1121.60 1181.38 1244.35
Less Reinvestment Rate 48.15% 62.29% 76.44% 90.58% 104.72% 104.72%
Free Cash Flow to Firm (FCFF) 497.66 381.21 250.93 105.68 -55.76 -58.73
Mid Year Convention 0.5 1.5 2.5 3.5 4.5
Discounting Factor 0.917 0.770 0.647 0.543 0.457
PV of FCFF 349.40 193.21 68.36 -30.30 -26.81

Expected Growth 5.33%

Terminal Growth 5.38%
WACC 19.04%

Calculation of Termination Value - ACC Ltd Sensitivity Analysis - ACC Ltd

347.05 18% 20% 22% 24%
FCFF(n+1) -61.86 3.00% 365.6 387.7 405.2 419.4
WACC 19.04% 4.00% 352.1 377.4 397.0 412.7
Terminal Growth Rate 5.38% 5.38% 330.1 360.7 383.9 402.2
6.00% 318.5 352.1 377.4 397.0
Terminal Value -453.02 7.00% 297.1 336.6 365.6 387.7

Calculation of Equity Value Per Share - ACC Ltd

PV of FCFF 553.86
PV of Terminal Value -206.81
Value of Operating Assets 347.05

Add : Cash 414.71

Loss : Debt 0
Value of Equity 761.76
Number of Shares 18.77
Equity Value per Share 40.59

Share Price 2043

Discount/Premium 50.33x
 Beta Calculation and Regression Ananlysis - Ambuja Cement
Ambuja Cement NIFTY 50 Beta Drifting
Date Adj Close return date Adj Close return Beta 1.06
2021-08-02 404.7 2021-08-02 15885.2
2021-08-03 408.6 0.98% 2021-08-03 16130.8 1.55% LEVERAGE RAW DATA 1.06
2021-08-04 405.6 -0.75% 2021-08-04 16258.8 0.79% BETA WEIGHT 75%
2021-08-05 405.4 -0.04% 2021-08-05 16294.6 0.22%
2021-08-06 390.9 -3.58% 2021-08-06 16238.2 -0.35% MARKET BETA 1
2021-08-09 392.4 0.38% 2021-08-09 16258.3 0.12% MARKET BETA WEIGHT 25%
2021-08-10 387.8 -1.17% 2021-08-10 16280.1 0.13% Adjust Beta 1.045
2021-08-11 385.5 -0.61% 2021-08-11 16282.3 0.01%
2021-08-12 387.0 0.39% 2021-08-12 16364.4 0.50% SUMMARY OUTPUT
2021-08-13 389.5 0.66% 2021-08-13 16529.1 1.01% Regression Statistics
2021-08-16 383.5 -1.54% 2021-08-16 16563.1 0.21% Multiple R 0.41624886
2021-08-17 388.6 1.32% 2021-08-17 16614.6 0.31% R Square 0.173263114
2021-08-18 396.2 1.97% 2021-08-18 16568.8 -0.28% Adjusted R Square 0.171589557
2021-08-20 379.2 -4.30% 2021-08-20 16450.5 -0.71% Standard Error 0.021600111
2021-08-23 378.1 -0.29% 2021-08-23 16496.4 0.28% Observations 496
2021-08-24 382.6 1.20% 2021-08-24 16624.6 0.78%
2021-08-25 384.3 0.43% 2021-08-25 16634.7 0.06% ANOVA
2021-08-26 385.6 0.33% 2021-08-26 16636.9 0.01% df SS MS F Significance F
2021-08-27 396.9 2.94% 2021-08-27 16705.2 0.41% Regression 1 0.048303 0.048303 103.5298892 3.32008E-22
2021-08-30 404.3 1.87% 2021-08-30 16931.1 1.35% Residual 494 0.230483 0.000467
2021-08-31 407.5 0.80% 2021-08-31 17132.2 1.19% Total 495 0.278786
2021-09-01 408.0 0.11% 2021-09-01 17076.3 -0.33%
2021-09-02 414.9 1.71% 2021-09-02 17234.2 0.92% CoefficientsStandard Error t Stat P-value Lower 95% Upper 95%Lower 95.0% Upper 95.0%
2021-09-03 423.1 1.96% 2021-09-03 17323.6 0.52% Intercept 4.19787E-05 0.000971 0.043224 0.965540062 -0.001866174 0.00195 -0.00187 0.001950132
2021-09-06 424.2 0.27% 2021-09-06 17377.8 0.31% X Variable 1 1.066647281 0.104831 10.17496 3.32008E-22 0.860678506 1.272616 0.860679 1.272616055
2021-09-07 427.3 0.73% 2021-09-07 17362.1 -0.09%
2021-09-08 421.9 -1.26% 2021-09-08 17353.5 -0.05%
2021-09-09 424.3 0.55% 2021-09-09 17369.3 0.09%
2021-09-13 422.2 -0.48% 2021-09-13 17355.3 -0.08%
2021-09-14 418.6 -0.87% 2021-09-14 17380.0 0.14%
2021-09-15 423.0 1.06% 2021-09-15 17519.4 0.80%
2021-09-16 416.4 -1.57% 2021-09-16 17629.5 0.63%
2021-09-17 406.3 -2.42% 2021-09-17 17585.2 -0.25%
2021-09-20 396.6 -2.38% 2021-09-20 17396.9 -1.07%
2021-09-21 399.9 0.83% 2021-09-21 17562.0 0.95%
2021-09-22 406.0 1.52% 2021-09-22 17546.7 -0.09%
2021-09-23 406.1 0.01% 2021-09-23 17822.9 1.57%
2021-09-24 397.5 -2.11% 2021-09-24 17853.2 0.17%
2021-09-27 404.6 1.78% 2021-09-27 17855.1 0.01%
2021-09-28 399.8 -1.17% 2021-09-28 17748.6 -0.60%
2021-09-29 393.4 -1.61% 2021-09-29 17711.3 -0.21%
2021-09-30 387.3 -1.54% 2021-09-30 17618.2 -0.53%
2021-10-01 389.3 0.51% 2021-10-01 17532.1 -0.49%
2021-10-04 393.4 1.06% 2021-10-04 17691.3 0.91%
2021-10-05 390.7 -0.70% 2021-10-05 17822.3 0.74%
2021-10-06 382.2 -2.17% 2021-10-06 17646.0 -0.99%
2021-10-07 390.0 2.03% 2021-10-07 17790.3 0.82%
2021-10-08 390.1 0.04% 2021-10-08 17895.2 0.59%
Return on Markets
Year Annual
2000 -14.65%
2001 -16.18%
2002 3.25% average rate 15.44%
1
2003 71.90% devident rate 1.36%
2004 10.68% Total Market Return 15.44%
2005 36.34%
2006 39.83%
2007 54.77% Return on Market
2008 -51.79%
100.00%
2009 75.76%
2010 17.95% 80.00%
2011 -24.62%
60.00%
2012 27.70%
2013 6.76% 40.00%
2014 31.39%
20.00%
2015 -4.06%
2016 3.01% 0.00%
1995 2000 2005 2010 2015 2020 2025
2017 28.65% -20.00%
2018 3.15%
2019 12.02% -40.00%
2020 14.90% -60.00%
2021 24.12%
2022 4.32%