P-Sec: Sell Acc, Target Of Rs 816

Broking houseACC Cement, P-Sec is bearish on ACC and has recommended sell rating on the stock with a target of Rs 816.

P-Sec report on ACC:

ACC reported 19% yoy increase in operating profits. PBIT before exceptional was higher due interest income. Higher tax rate is due to adjustment is a one off and tax rate is also expected to settle down to 27%.

Stock trades at PE 16x CY08E and EV/EBITDA of 9.7x CY08E that makes it an expensive scrip.