Religare has downgraded ACC to 'Hold' from 'Buy' with target price of Rs 1,550 in its report.

ACC's consolidated sales grew to Rs 27.6 billion, in line with estimates. Grey cement volume, realisation growth stood at -1.5% /+2% YoY. Realisations dipped 1.7% QoQ as prices declined across markets. Volume growth continued to lag that of large-cap peers.

Commenting on the investment rationale, the stock broker said, ''We  downgrade the stock to Hold (from Buy) and continue to prefer UTCEM over ACC for its more consistent delivery on volumes and EBITDA/t. While the stock is trading near the replacement cost, upside will hinge on demand pickup as well as synergy benefits, if any, from the Holcim deal. We trim our CY15/CY16 estimates by 6%/12% on lower margin expectations, and roll over to a Mar'16 TP of Rs 1,550 based on 11x EV/EBITDA.''

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