ACC's Q4CY20 revenue increased by 2% YoY and is led by increase in the realization of 5% YoY. Q4CY20 cement sales volume declined by 1% YoY, impacted from weak volume in the South market.

Commenting on the result review, IDBI Capital said, "ACC's Q4CY20 Adj. EBITDA is 7% lower than our estimate. Volume in the quarter has declined by 1% YoY and adjusted EBITDA/t stood at Rs 908 (vs Rs 1033/t QoQ). Cash in the books remains strong at Rs 58 billion (18% of Mkt Cap) and company has announced dividend of Rs 14/sh in CY20, which is same as CY19.

Due to lack of capacity addition, ACC has lost market share in the last 3-4 years. And company plans to correct this with addition of 5.4mtpa over CY21, CY22. In CY21/22E we factor volume to increase by 19%/3% YoY and EBITDA/t of Rs955/952 respectively.

We maintain our estimate and TP of Rs 1,879, stock is trading closer to our TP and thus down-grade the rating to Accumulate."

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