Cement maker ACC equity value sees sharp fall after Adani acquisition

ACC and Ambuja Cements were acquired by Adani group in September 2022 from LafargeHolcim Group.

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. 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