Choice Institutional Equities Recommends 'BUY' for ACC, Sets Target at Rs 2200

• Choice Institutional Equities maintains a 'BUY' rating on ACC, with a revised target price of INR 2,200, down from INR 2,475.
• The revised target price incorporates the amalgamation with ACEM and the announced share swap.
• Positive outlook for ACC is driven by group synergy benefits, strategic focus on Southern India, and a cost-reduction plan 'Parvat' targeting INR 500/ton reduction by FY28E.
• The cement industry is expected to grow by 7-8% in FY26E with a healthy pricing environment, providing positive sector tailwinds.
• ACC's EBITDA is projected to expand at a CAGR of 14.5% over FY25–28E, supported by volume and realization growth.

Why It Matters: Choice Institutional Equities recommends buying ACC, citing synergy benefits, strategic growth, and cost reduction.