ACC has received two separate GST demand orders totaling ₹40.13 crore from tax authorities in Punjab and Bihar. The cement manufacturer faces these demands related to alleged excess input tax credit violations under the CGST Act, 2017.

GST Demand Orders Breakdown

The company received two distinct orders with varying demand amounts and penalties from different state authorities.

Nature of Alleged Violations

The GST demands stem from multiple compliance issues identified by the tax authorities. The alleged violations include excess input tax credit availed, excess ITC claimed under the Input Service Distributor mechanism, verification issues with credit notes, ineligible ITC claims, and supplies or tax reduced through amendments.

Company Response and Market Performance

ACC has stated that it will take appropriate steps to appeal against both orders before the relevant authorities. The company does not anticipate any material impact on its financials, operations, or other activities resulting from these demands.

Shares of ACC ended at ₹1,737, gaining ₹4.90 or 0.28% on the BSE, indicating that investors view the GST demands as manageable given the company's financial position and appeal process.

CLSA has maintained a Hold rating on ACC Limited, setting a price target of ₹2035.00 for the cement manufacturer. The brokerage's neutral recommendation reflects a measured outlook on the company's stock performance in the current market environment.

Brokerage Recommendation Details

The investment firm's analysis positions ACC with a Hold rating, indicating that current shareholders may consider retaining their positions while new investors might wait for better entry opportunities. The price target of ₹2035.00 provides a specific valuation benchmark for market participants.

Company Profile

ACC Limited operates as a major player in India's cement industry, classified as a large-cap stock with substantial market capitalization. The company maintains a significant presence in the construction materials sector, serving both retail and institutional customers across various market segments.

Market Context

The Hold rating suggests that CLSA views ACC's current valuation as fairly priced, with limited upside potential in the near term. This neutral stance typically indicates that while the company maintains stable fundamentals, market conditions or sector-specific factors may be constraining immediate growth prospects.