Why ACC Share Price is Falling

Editor's note: It's been a month since Hindenburg published a detailed report on the Adani group stocks.

In an overwhelming selloff on Wednesday, 22 February 2023, ACC share price registered a fall of over 5%, hitting its 52-week low.

The recently acquired cement company has remained in a downward spiral ever since the Hindenburg report.

Continue reading to find out why ACC share price continues to fall.

Why ACC Share is Falling

Adani group stocks were the biggest movers in the stock market last week.

Hindenburg Research released its report on the Adani group in January 2023, calling it 'The Largest Con in Corporate History'.

Due to this, shares of most Adani stocks took a blow.

Amid this steep fall, shares of ACC, the recently acquired cement company, have taken a hit and its shares currently trade near 52-week low.

Hindenburg Shoutout

Hindenburg Research published a report on 24 January 2023 titled - Adani Group: How the World's 3rd Richest Man Is Pulling The Largest Con In Corporate History, alleging that the group is engaged in brazen stock manipulation.

The report identified numerous instances of undisclosed related-party transactions and earnings manipulation for healthy financials.

The firm also took a short position in Adani Group companies after a two-year investigation based on interviews with former executives, site visits in multiple countries and document reviews.

The allegations come ahead of an ambitious US$2.5 bn follow-on public offer (FPO).

Replying to the allegation, the Adani group called the report a malicious combination of selective misinformation and stale, baseless and discredited allegations.

The company has further questioned the timing of the report, having the cruel purpose to harm the upcoming Adani group FPO.

The company has also issued a 400-page detailed report for the questions of Hindenburg research.

How the Adani vs Hindenburg battels pan out remains to be seen. Stay tuned for more updates from this space.

Margins under pressure

According to media reports, rising input costs are still clamping down on the cement sector.

The sector has been experiencing high raw material costs since the start of the Russian-Ukraine war. Input costs are still elevated, creating a pressure on margins.

Not just ACC, but other cements stocks are also falling as rising interest costs and high travel costs are expected to remain concern for the cement sector in the coming quarters.

The continued margin pressure has further dampened investor sentiment regarding the sector, triggering a sell-off in ACC.

How shares of ACC have performed recently

ACC share price is down 2% today. Over five days, the shares are trading lower by 21.7%.

In a month, the shares have eroded 24.3% of their market value.

The company touched its 52-week high of Rs 2,785 on 14 September 2022 and its 52-week low of Rs 1,732 on 27 January 2023.

1,732 on 27 January 2023.

About ACC

ACC is India's foremost manufacturer of cement and concrete. The company was formed by the merger of ten existing cement companies.

The company is engaged in the manufacturing and selling of cement and ready-mixed concrete.

They manufacture a range of Portland cement for general construction and specific applications. In addition, they also offer two products, namely bulk cement and ready-mix concrete. It operates with 30 ready-mix concrete plants.

The company also provides project management and engineering at cement plants abroad.

For more details about the company, you can have a look at see the ACC company fact sheet and quarterly results on our website.

You can also compare ACC with its peers.

ACC vs Ambuja Cement

ACC vs India Cement

Since stocks from the cement sector interest you, check out Equitymaster's powerful Indian stock screener tool to find the top cement companies in India.

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