Goldman keeps ACC at Sell

Goldman keeps ACC at Sell
28 April 2011

Goldman Sachs keeps ACC at Sell with a price target of INR934 as it believes that the company’s operating profit level per ton has peaked.

"The pick up in cement prices since September 2010 has turned out to be much stronger than anticipated, driving the realisation and margin surprises (in the 1QCY11 results)," says the house.

It adds, cement prices in east and central India are seeing some correction in recent weeks, while prices in other regions have peaked and may come off by June. The house reckons the impact of Coal India’s price hike in March will start impacting margins from 2QCY2011 onwards.
Published under Cement News