ACC equity value sees sharp fall after Adani acquisition

A big valuation gap has opened up between ACC and its parent Ambuja Cements post their acquisition by the Gautam Adani group in September 2022.

- KRISHNA KANT

ACC, India’s oldest cement-maker is now trading at less than half the valuation ratio of Ambuja Cements. By contrast, prior to their acquisition, the two companies traded at similar valuations.

ACC is trading at a trailing price-to-earnings multiple of around 15X — less than half Ambuja Cements’ trailing earnings multiple of 32.6X as on Thursday. Similarly, ACC is trading at a price-to-book value ratio of 2.9, nearly 25 per cent lower than Ambuja Cements’ current P/BV ratio 0f 3.9.

ACC and Ambuja Cements were acquired by Adani group in September 2022 from LafargeHolcim Group. Ambuja Cements currently holds a 50.05 per cent stake in ACC, while the Adani family owns another 6.64 per cent through two of their investment firms. By comparison, the Adani family holds a 67.57 percent stake in Ambuja Cements.

ACC accounts for nearly half of Ambuja Cements’ consolidated revenue and profit.

ACC closed with a market capitalisation of $35,102 crore on Monday, reporting a consolidated net profit of 2,344.7 crore in the 12 months ending June this year (Q1FY26). Ambuja Cements on the other hand closed with a market capitalisation of around %1.41 trillion on Friday, with a consolidated net profit of 4,293 crore during the same period.