汇丰银行-印度水泥产业-india cement upgrade acc to buy on record volumes and massive beat；upgrade acem to hold-20170718-hsbc.pdfVIP

18 July 2017   India Cement EQUITIES MATERIALS Upgrade ACC to Buy on record volumes and massive beat; upgrade ACEM to Hold India  ACC reported record volumes and sharp improvement in Rajesh Lachhani* margins – a massive beat of consensus estimates Analyst, Metals Mining, Materials HSBC Securities and Capital Markets (India) Private Limited rajeshvlachhani@hsbc.co.in  Improving cost efficiency, strong volumes and higher +9122 6164 0687 realisations could result in 860bp margin expansion by 2018e * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is  Upgrade ACC to Buy (TP: INR1,900 from INR1,680) and not registered/ qualified pursuant to FINRA regulations ACEM to Hold (TP: INR252 from INR214) on higher earnings Record volumes and higher realisations results in strong earnings surprise: ACC reported strong volumes of 6.74mt (up +10% y-y), higher than consensus expectation of 6.3mt, aided by increased volumes from Jamul and Sindri and benign base. RMC volume of 0.67m cubic metres was up 6% y-y, continuing its positive trend. Volume growth was comm