ACC LIMITED Page 1

TECHNICAL AND FUNDAMENTAL

ANALYSIS












SUBMITTED BY
RAKESH BHARDWAJ
PGDM (MARKETING & FINANCE)
THAPAR UNIVERSITY
ACC LIMITED Page 2

FUNDAMENTAL ANALYSIS

Top to down valuation
ECONOMIC ANALYSIS

As current growth rate depicted by RBI come under 5% for first quarter 2013,
the growth in manufacturing sector become quite stagnant. Although
companies operations at ACC still shows 2% increase in Net sales and 11% in
net value of company. Company seems to do quite good even in most
turbulent market conditions and depreciating rupee. Current inflation rate of
first quarter is 5.79% which is within bearable levels of the company and
consumer. Gross GDP is around 10.79% as current economic conditions.

INDUSTRY ANALYSIS---

FIVE FORCE MODEL
Bargaining power of suppliers
As ACC and AMBUJA cement are companies of one parent company
HOLICIM international and these companies posses major stake in Indian
cement market.
Bargaining power of ACC being major player in market is more over its
suppliers.
Bargaining power could be strengthened if ACC and AMBUJA buy raw
material jointly.
Bargaining power of Buyers
As ACC is market leader in cement industry of India it dictates the price
of industry.
This factor is also in favour of Acc as it control market price of cement
industry.

ACC LIMITED Page 3

Threats of Substitution
Acc gets direct threat from Market challengers like BINANI, JAYPEE,
BIRLA cements etc.
ACC faces indirect threats from Substitutes like wooden houses etc.
Threats of New Entrants
As due to large initial cost threats for this industry are fewer than other
industries.
Major Indian players like TATA, RELIANCE are capable for entering this
market.
Government laws and licence norms are also Barriers to entry.
Rivalry among companies



Competition for market share is intense among top players.
As being characterised as commodity product lack major
differentiation.
Companies previously competed on price, but now more focus is
on creating differentiation to sustain completion.

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COMPANY ANALYSIS

ACC (ACC Limited) is India's foremost manufacturer of cement and concrete.
ACC's operations are spread throughout the country with 17 modern cement
factories, more than 40 Ready mix concrete plants, 21 sales offices, and several
zonal offices. It has a workforce of about 9,000 persons and a countrywide
distribution network of over 9,000 dealers.
Since inception in 1936, the company has been a trendsetter and important
benchmark for the cement industry in many areas of cement and concrete
technology. ACC has a unique track record of innovative research, product
development and specialized consultancy services. The company's various
manufacturing units are backed by a central technology support services
centre - the only one of its kind in the Indian cement industry.
ACC has rich experience in mining, being the largest user of limestone. As the
largest cement producer in India, it is one of the biggest customers of the
domestic coal industry, of Indian Railways, and a considerable user of the
countrys road transport network services for inward and outward movement
of materials and products.
VALUATION

Market Based valuation
P/E ration= PRICE/EPS.
P/E ratio trend and EPS are forecasted till 2020.
Value of share = P/E*EPS.
Year value of share
2013 1374.46
2014 1466.26
2015 1558.06
2016 1649.87
2017 1741.7
2018 1833.53
2019 1925.38
2020 2017.24
ACC LIMITED Page 5

INFRENCE

ACC Ltd.
BSE: 500410 - 30 Aug 3:50pm IST
961.80+2.35 (0.24% )


As current market price of share is less than its value investor should go
for buying the stock.
Investor already having shares should hold until market Surges again.
Optimum time for going for bottom phishing.

TECHNICAL ANALYSIS

MOVING AVERAGES

Moving Average of ACC Ltd.
Current Share Price 964.10
Three Days 955.62
Five Days 962.33
Ten Days 1000.64
Fifteen Days 1056.36
Twenty Two Days 1092.13
Thirty Days 1130.00
Fifty Days 1166.57
Hundred Days 1189.89
ACC LIMITED Page 6



As trend is showing upward for long term investment, call buy for
long term investment.
BUY CALL at 955 per share.
Stop loss at 955 per share.




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MACD MA-26
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MACD





MACD is below zero that is 12 periods MA is below 26 period MA.
Sigh of bearish that is negative. Market can go further down, so stop loss
could be used.










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MACD
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CANDLE STICK CHART




Plot between dates, open, high, low, close stock price.
Stock is trending below its value.





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30-Aug-13
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RSI INDICATOR




Stock is overbought.
Market is showing low but RSI is rising which show divergence.
RSI above 50 is a Bullish sigh.









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ACC LIMITED Page 10


Bibliography
ACC. (2013). ACC ANNUAL STATEMENT. ACC.
NSE. (2013). ACC CEMENT. NSE INDIA.
REASEARCH, T. S. (2013). ACC.