Led by a strong jump in per-tonne profit to a multi-year high in the June quarter, the stock of cement major gained nearly 13 per cent on the bourses on Tuesday.
Better than expected realisation and operational efficiencies helped boost the operating profit to about Rs 813 a tonne, the highest in five years, according to analysts at brokerage Prabhudas Lilladher. ACC reported per-tonne profit at Rs 736 in the year-before quarter and Rs 597 in the previous quarter. Not surprising, the Street has upgraded the stock.
The Street will keep an eye on whether the company will sustain this performance. For now, with a narrowing profitability gap to its peers, led by a higher proportion of premium sales and