ACC Share Price in 1992 ( ACC Share History from Harshad Mehta Scam 1992 to 2024)

ACC Ltd (Associated Cement Company) is one of the leading cement manufacturers in India. Founded in 1936, it has grown to become one of the country’s most valuable and respected companies over its long history. ACC is also counted among the pioneers of the Indian cement industry.

The company operates around 17 cement manufacturing sites, over 80 concrete plants, 21 bulk terminals, and several captive power plants across India. ACC is a subsidiary of LafargeHolcim, one of the world’s largest building materials and solutions companies.

Over the decades, ACC Ltd has not only expanded capacity but also integrated sustainability into its vision and operations. It is focused on low carbon growth while creating shared value for all stakeholders.

ACC’s journey in the Indian stock market has seen many ups and downs over the years. After starting off strong in the early years post-IPO, it hit a rough patch following the 1992 stock market scandal. However, it recovered in the subsequent years to regain its position as a leading cement manufacturer in the country.

The demand for cement in India has grown steadily over the years, benefitting companies like ACC. With increasing infrastructure and construction activity, the cement sector is poised for good growth. ACC Ltd has leveraged this opportunity while battling competition in the sector.

In this blog post, we will analyze ACC Ltd’s historical stock market performance over the decades. How did events like the 1992 scam impact ACC Share Price in 1992? What were the factors behind its meteoric rise in early years? What is the outlook for ACC and the cement sector going forward? Read on to get insights into the journey of one of India’s cement pioneers.

ACC Share Price Chart From 1990 to 2024

ACC Ltd got listed on the stock exchanges in 1936, and its shares have seen a lot of action over the decades since then. Let’s take a look at how the company’s share price has moved from 1990 to 2024:

• In 1990, ACC share price was around Rs 100.
• The stock saw steady growth in the early 90s, trading in the range of Rs 150-200.
• Things changed dramatically in 1992 following the Harshad Mehta scam, which led to a major crash in stock markets. ACC share price fell to around Rs 40.
• By 1993-94, the stock had recovered to about Rs 125 levels.
• ACC share price crossed Rs 200 for the first time in 1995.
• In 2000, during the dotcom bubble, the shares went past Rs 400.
• The stock hit Rs 1000 for the first time in 2010 on the back of strong growth in cement demand.
• In 2018-19 period, ACC was trading in the Rs 1300-1500 range.
• The stock is currently trading around Rs 1800 levels (in 2024).

Clearly, barring the crash post the 1992 scam, ACC shares have delivered stellar returns for investors over the long term. The consistent capacity expansions, solid demand outlook and promoter backing have aided in its wealth creation.

Now let’s look at the specific annual returns delivered by ACC Ltd shares over the decades in a tabular format:

This table gives us a snapshot of how the ACC stock has performed over the past 35 years. The next section will analyze the key events that impacted its share price journey during this period.

ACC Ltd’s share price Historical Performance::

Year	Stock Price	YOY Chg %	High	Low
1990	59.6	0.0	99.4	12.1
1991	118.3	98.4	147.0	48.5
1992	136.5	15.3	397.0	107.0
1993	151.1	10.6	172.0	83.8
1994	216.5	43.3	266.0	153.0
1995	148.6	-31.4	229.0	130.0
1996	101.8	-31.5	248.0	77.6
1997	118.6	16.4	153.0	86.4
1998	88.3	-25.6	157.0	68.2
1999	248.3	181.0	303.0	83.0
2000	159.0	-36.0	273.0	83.5
2001	151.8	-4.6	199.0	90.6
2002	165.1	8.7	179.0	126.0
2003	245.6	48.7	255.0	126.0
2004	338.7	37.9	340.0	218.0
2005	534.2	57.7	568.0	327.0
2006	1085.6	103.2	1192.0	501.0
2007	1024.5	-5.7	1314.0	680.0
2008	477.9	-53.4	1050.0	369.0
2009	871.5	82.3	928.0	469.0
2010	1075.6	23.4	1133.0	700.0
2011	1136.4	5.6	1233.0	917.0
2012	1429.4	25.7	1514.0	1083.0
2013	1108.2	-22.5	1452.0	912.0
2014	1399.4	26.2	1570.0	971.0
2015	1359.6	-2.9	1774.0	1302.0
2016	1328.4	-2.3	1738.0	1173.0
2017	1757.9	32.3	1869.0	1315.0
2018	1504.8	-14.4	1856.0	1255.0
2019	1444.7	-4.0	1768.0	1325.0
2020	1618.4	12.0	1788.0	895.0
2021	2217.4	37.0	2587.0	1584.0
2022	2441.4	10.1	2784.0	1900.0
2023	2211.3	-9.5	2488.0	1592.0
2024	2496.0	11.5	2563.0	2190.0

ACC LTD Share Returns In Last 5 Years

If we analyze ACC Ltd’s share price movements in the most recent 5 year period from 2019 to 2024, we can see that it has delivered moderate returns.

• In 2019, ACC share price was around Rs 1450
• The stock rose gradually over the next couple of years, touching highs of Rs 1850 in 2021
• In 2022, the share price corrected to around Rs 1600 levels
• Currently in 2024, ACC is trading at around Rs 2,496

Over the 5 year period from 2019 to 2024, ACC has delivered returns of approximately 24%. On an annualized basis, this amounts to compounded annual gains of around 4.4%.

ACC LTD Share Returns In Last 10 Years

Looking back over the 10 year period from 2014 to 2024, ACC Ltd has rewarded its shareholders well.

• In 2014, ACC share price was trading at around Rs 1000 mark
• Over the next decade, the stock rose consistently, touching new highs along the way
• Currently in 2024, ACC share price is around Rs 2,496

The share price has appreciated by 80% over the past 10 years, delivering annualized returns of around 6.5% compounded annually.

ACC LTD Share Returns In Last 15 Years

The 15 year period from 2009 to 2024 has been a phenomenal one for ACC investors.

• ACC share price in 2009 was around Rs 550
• The stock rose steadily from 2010 onwards as demand environment improved
• In spite of some volatility, the upward momentum was maintained
• Currently trading at Rs 2,496, the stock has delivered over 200% returns in 15 years

This translates to compounded annual gains of around 9.5% over the past 15 years.

ACC LTD Share Returns In Last 20 Years

Taking a longer 20 year view from 2004 to 2024, ACC Ltd has been an outstanding wealth creator.

• ACC share price in 2004 was around Rs 270
• Barring some corrections in 2008 and 2011, the stock rose consistently from 2005 onwards
• Demand uptick starting 2010 propelled the stock to record highs
• Currently trading at Rs 1800, the stock has given a staggering 20 year return of over 570%

This amounts to phenomenal compounded annual returns of around 13.5% over the past 20 years.

Clearly, ACC Ltd has been a shareholder’s delight over the long term, with consistently rising share prices and healthy returns across 5 year, 10 year, 15 year and 20 year periods.

ACC LTD Share VS FD (Normal) VS FD (Compounding)

Let’s now analyze how ACC Ltd’s share returns over the years compare with Fixed Deposit (FD) returns in the same period. This will give us perspective on how attractive the stock has been as an investment avenue.

We will compare ACC annual returns with:

1. Normal FD returns
2. Compounding FD returns

Let’s assume an average normal FD rate of 7% and compounded FD rate of 10% for the analysis.

Over the last 5 years, ACC has given 24% returns. Normal FD would have given 35% (7% simple interest annually) while compounding FD would have given 61% (10% annually compounded).

In the 10 year period, ACC has given 80% returns compared to Normal FD returns of 70% and Compounding FD returns of 159%.

Over 15 years, ACC has given 200% returns while Normal FD would have returned 105% and Compounding FD about 277%.

Finally, over the last 20 years, ACC has given a phenomenal 570% return. A Normal FD would have earned 140% and Compounding FD about 619%.

In most periods, the ACC share has outperformed the Normal FD in terms of returns. Compounding FDs score over ACC shares only in the 15 & 20 year horizons.

Overall, while FD returns are more predictable and safe, investing in ACC would have earned much superior returns in the long run. The analysis shows the wealth creation potential of equity investing in fundamentally strong companies like ACC Ltd.

Going forward, ACC’s growth outlook and performance will decide if it can continue giving higher returns than fixed income options like FDs.

History of ACC Share Price in 1992 to 2023

ACC Ltd has seen many ups and downs in its share price journey over the decades. One of the most turbulent periods for the ACC’s stock was from 1992 to 2023. Let’s look at the key events and ACC’s share performance in this period:

1992 – Harshad Mehta Scam Rocks Markets

The securities scam by stockbroker Harshad Mehta came to light in April 1992, leading to a massive crash in the Indian stock markets. ACC’s share price plummeted from around Rs 200 to Rs 40 in a span of few months.

1993-94 – Recovery Begins

ACC stock started recovering gradually from the huge crash as confidence returned to the markets. By 1994, it was trading around Rs 125 levels.

1995 Onwards – Growth Phase Resumes

From 1995, demand for cement began picking up again as the economy recovered. ACC’s shares crossed Rs 200 mark in 1995 as its earnings improved. By 1999, the stock was trading above Rs 300.

2000-01 – Dotcom Bubble Impact

The dotcom bubble took ACC’s stock price past Rs 400 in 2000. However, the bubble burst in 2001 led to correction back towards Rs 300 levels.

2005-07 – Demand Uptick

Cement demand saw an uptick in India from 2005 onwards with higher infrastructure and housing activity. ACC’s stock price reflected this optimism, moving from around Rs 400 to over Rs 1000 by 2007.

2008 – Global Financial Crisis Dents Sentiment

The 2008 financial crisis resulted in a steep correction, with ACC shares falling back below Rs 500 briefly. But the healthy demand outlook limited the downside.

2010 Onwards – Surge to New Highs

From 2010 to 2023, ACC’s stock rode multiple growth waves, surging from Rs 600 levels to all-time highs of around Rs 2300 recently on the back of strong volume growth and pricing power.

The period from 1992 to 2023 saw ACC’s stock recover from the Harshad Mehta scam crash to become a multibagger. The company leveraged India’s cement demand growth effectively through prudent expansions.

Past significance in the Indian stock market

As one of the older large-cap stocks, ACC Ltd has held a position of importance in the Indian stock markets over the decades:

• One of the earliest cement stocks to get listed in India after starting operations in 1936. It has over eight decades of history in the Indian capital markets.
• Part of the original BSE Sensex stocks when the index was launched in 1986. Continues to be part of the index even today.
• Was among the biggest companies in India by market capitalization through the 1990s and early 2000s before the tech boom.
• Dominated cement sector trading for many years before competitors like Ultratech Cement, Shree Cement etc. gained ground. Still among top 2 cement stocks in terms of market cap.
• Was the most widely held stock in Indian investor portfolios historically, offering an ideal mix of steady growth and dividends. Was seen as a defensive stock.
• Share splits by company in 1994 and 2011 made the stock more affordable for retail investors over time.
• Delivered very high returns to shareholders in the initial decades post-IPO by effectively using its first mover advantage in the cement industry.
• Strategic stake sales by Government to foreign cement majors like Holcim over the years has boosted company prospects.
• Despite competition, ACC continues to be among the top economic moats in Indian stock markets. Retains strong brand image and recall.

While the structure of markets has changed over the decades, ACC Ltd remains an important large-cap name shaping the Indian stock market’s evolution. It remains a key holding in most long-term investor portfolios.

The meteoric rise (focus on early years, pre-scandal)

ACC Ltd enjoyed a meteoric rise in its share price in the initial decades after its listing, especially in the pre-1992 period before the Harshad Mehta scam hit stock markets. Let’s look at some of the key factors that drove the stock’s stunning performance:

• Cement nationalization in 1970s enabled ACC to emerge as the dominant player in the industry in India. With little competition, it enjoyed pricing power and high growth.
• Strong economic growth after liberalization starting 1991 saw construction and infrastructure activity pick up. This massively boosted cement demand, benefitting ACC.
• Being one of India’s oldest companies, ACC had a first mover advantage combined with excellent brand recognition and distribution reach.
• For many years post-IPO, ACC had a monopoly like status in the cement sector. This allowed it to consistently grow sales and profits.
• ACC’s cement capacity expansions in the 1980s and early 90s ensured it was able to cater to the increasing industry demand efficiently.
• Strong balance sheet and cash flows enabled ACC to deliver regular dividends along with share price appreciation. It became a favorite defensive stock.
• Government divestment of its stake in ACC through offerings for sale provided liquidity and encouraged wider investor participation.

Riding on its dominant industry position, brand strength, capacity expansions and solid financials, ACC Ltd’s share price surged rapidly in the pre-1992 period right from its IPO, delivering blockbuster returns for early investors.

Demand of Cement in India

The growing demand for cement in India over the decades has been a key factor driving ACC Ltd’s performance and share price. Let’s look at what fueled cement demand growth in the country:

• Rapid urbanization and population growth, especially post liberalization in the 1990s, saw a boom in housing construction, driving cement demand higher.
• Large investments in infrastructure projects like roads, ports, airports etc. by the government and private sector boosted cement consumption significantly.
• Growth of the commercial real estate sector – malls, hotels, hospitals etc further propelled cement demand.
• Rural housing and construction activity also picked up over the years, adding to demand.
• Availability of cheaper home loans and rising incomes led to higher affordability and activity in real estate, fueling cement usage.
• Government schemes like ‘Housing for All by 2022’ focused on increasing home ownership, utilizing more cement.
• Increased spends on industrial construction with growth in sectors like automobile, FMCG etc.
• Higher spends on public infrastructure like metros, bridges, dams etc. in the last decade.
• Growth in cement usage in new applications like prefabricated construction.

With strong tailwinds from population growth, urbanization, government infrastructure projects, real estate boom, rising incomes and evolving construction techniques, the cement demand in India has grown at a healthy rate of 6-7% CAGR annually over the past few decades – benefitting major producers like ACC.

ACC Share Price in 1992

The year 1992 marked a major turning point in ACC Ltd’s stock price performance.

Its started on a strong note, with ACC Share Price in 1992 at around Rs 200 in January. The outlook seemed positive, with demand for cement on the rise in India.

However, things took a dramatic turn in April 1992 when the Harshad Mehta securities scam broke out, leading to a meltdown in Indian stock markets.

The scam caused panic among investors and raised concerns about corporate governance and market regulations. Being a leading blue-chip company, ACC’s stock was hit hard in the ensuing crash.

From peak levels of around Rs 200, ACC Share Price in 1992 fell sharply as the scam unfolded. By June 1992, the stock had plunged to nearly Rs 40, crashing around 80% from the top!

While the company’s intrinsic strengths and outlook remained robust, the stock got caught in the whirlwind of negative sentiment and systematic sell-off seen in 1992.

For investors who had entered ACC stock near the peak in early 1992 or were leverage exposed, it resulted in massive losses within a short span as the share price eroded quickly.

However, for investors who managed to hold on through the crash or accumulated the stock at lower levels, it proved an opportunity to enter a quality name at attractive valuations.

The events of 1992 provided early signs of the volatility inherent in stock markets and the importance of staying invested for long term rather than getting swayed by sudden market upheavals.

Factors contributing to the surge in ACC share price in 1992

While ACC Ltd’s share price rose strongly in the initial months of 1992 to hit almost Rs 200, there were some fundamental factors driving the uptrend:

• Cement demand was growing at a healthy pace in early 1992 as real estate activity picked up along with higher infrastructure spending. This benefited major producers like ACC.
• After a subdued previous year, ACC returned to strong revenue and profit growth in financial year 1991-92 on the back of higher sales volume and prices. Its results in the first half of 1992 were quite positive.
• The budget in 1992 was also supportive for the infrastructure and construction industry, with higher outlays, which had a positive rub-off effect on cement demand and ACC.
• India’s economy was opening up and growing faster post liberalization. This was leading to higher cement consumption across housing, infrastructure and industrial segments.
• ACC’s strong brand appeal, extensive distribution network and track record of reliable supply made it a preferred choice for major construction projects.
• The company had undertaken cement capacity expansion in the late 1980s which enabled it to meet the increasing demand efficiently.
• ACC’s 1991 stake sale to foreign investors like ICI had provided funds for repaying debt and expansion. This improved sentiments.
• Stocks like ACC were rallying globally as part of a euphoric pre-recession bubble driven by high liquidity and momentum.

While the surge proved short-lived due to the 1992 scam, the positive industry dynamics and ACC’s strengths provided fundamental support for the uptrend in the company’s share price in the early months of 1992.

The shocking scandal (Harshad Mehta Scam 1992)

The securities scam by stockbroker Harshad Mehta in 1992 proved to be a turning point not just for the Indian stock markets, but also for ACC Ltd’s share price trajectory.

How the scam impacted ACC’s stock performance:

• Harshad Mehta had exploited loopholes in the banking system to raise funds through fraudulent means, which were then invested in stocks to rig up prices artificially. Some of these funds were believed to have made their way into large stocks like ACC too.
• Once the scam came to light in April 1992, panic gripped stock markets leading to a massive crash across stocks as the artificially engineered bull run came to a halt.
• As concerns emerged around which companies had been ramped up by Mehta, investors started dumping stocks in a panic. Blue-chip stocks like ACC too faced selling pressure.
• Within a span of three months, ACC’s share price plunged from around Rs 200 to Rs 40, eroding enormous investor wealth as the stock crashed.
• ACC’s links to Harshad Mehta were limited to the latter having invested some scam money in the stock. But negative sentiments after the scam led to innocuous stocks also getting hammered.
• For ACC, the 1992 stock market scam resulted in huge volatility and price erosion. But being a fundamentally strong company, it gradually recovered.

So while ACC itself had no direct role in the scandal, its share price faced collateral damage as the overall markets crashed following the expose of the Harshad Mehta scam, marking a major turning point.

Performance (current market analysis)

Currently, ACC Ltd is trading around the Rs 2,496 levels (in 2024). Some key aspects related to ACC’s present performance and position:

• Cement demand has moderated slightly in the past year but outlook remains positive backed by infrastructure projects and low-cost housing programs.
• ACC reported healthy volume growth of around 5% in 2022 led by higher rural and retail demand. However, profits remained flat due to higher input costs.
• The stock trades around 20 times trailing earnings, which is at a marginal premium to its 5-year average P/E of around 18.
• ACC has optimal utilization of its expanded capacity. It is focusing on cost optimization and premium products to boost profitability.
• The stock offers around 4% dividend yield presently. Strong cash flows allow scope for higher payouts.
• Competition has increased with players like Ultratech, Ambuja, Dalmia etc. But ACC retains its brand appeal, wide reach and quality.

Overall, while short term uncertainty exists, ACC remains well placed to benefit from India’s cement demand growth over the long run given its strong parentage, extensive presence and focus on sustainability.

The demand for Cement in India (future outlook)

The long-term outlook for cement demand in India remains positive driven by the following factors:

• Housing and infrastructure construction activity is expected to pick up over the next decade, driven by urbanization and government initiatives. This will drive cement demand.
• Growth in commercial real estate across hotels, hospitals, malls as well as expansion in industrial sectors will augment cement consumption.
• Increased spends on large infrastructure projects in roads, metros, ports etc. will generate major demand for cement.
• The government’s affordable housing push and projects like ‘Housing for All’ are expected to sustain growth in residential construction and cement usage.
• Higher rural incomes and better connectivity is expected to propel construction activity and cement demand from rural India.
• New trends like prefabricated construction, use of cement in roads and increasing construction of warehouses on rising e-commerce may offer additional demand drivers.
• Cement export potential also exists for India with several countries in Africa, Middle East and South Asia being key importers.

According to estimates, cement demand in India could grow at a CAGR of around 6-7% annually over the next 5 years. This will benefit established cement companies like ACC with a solid track record and extensive market reach.

52-Week High Low

ACC highest Share Price: Rs 2,565.00 (52 week high)

ACC lowest Share Price: Rs 1,592.35 (52 week low)

Over the past one year, ACC Ltd’s share price has traded in a range of Rs 1,592.35 to Rs 2,565.

The stock hit its 52 week high of Rs 2,565 in January 2024. Improved cement demand and strong results had led to the uptick.

ACC LTD Peer Comparison

Let’s see how ACC Ltd compares with its peers in the cement sector:

1. UltraTech Cement – Larger capacity and market share, but ACC matches it on profitability metrics
2. Ambuja Cements – ACC has higher capacity, revenue, profits and valuations
3. Dalmia Bharat – Significantly smaller scale and profits compared to ACC
4. Ramco Cements – Lower market share and profits than ACC currently
5. India Cements – ACC is much larger by market capitalization and capacity

Among listed peers, ACC is second only to UltraTech in size and scale in India. It matches or leads other competitors on most financial parameters.

Given its long history, strong parentage, extensive reach, brand equity and focus on sustainability, ACC remains one of the most formidable cement brands in the Indian market despite intensifying competition.

ACC Share Highlights

ACC Share price in 1994

The stock had recovered to about Rs 125 levels by 1994 after plunging to Rs 40 in 1992 following the Harshad Mehta scam. Improving cement demand and positive market sentiments aided the rebound.

ACC Share price in 2010

ACC’s share price crossed Rs 1000 for the first time in 2010 as the company benefitted from strong growth in cement demand driven by higher infrastructure spending and construction activity.

ACC Share Price in 2020

In 2020, ACC was trading in the range of Rs 1300-1400 per share. After some impact of the Covid-19 pandemic, demand recovered strongly by second half of 2020.

ACC Share price in 2021

The stock surpassed Rs 2000 for the first time in 2021, reaching a high of around Rs 2150 on the back of robust volume growth and firm pricing trends.

ACC share price in 2022 – Fluctuated between Rs 1655-2298

2022 saw volatility in ACC share price from Rs 1655 to Rs 2298 levels. While input cost inflation and sluggish demand impacted initially, recovery came in second half. ACC shares reached an all-time high of Rs 2,565. in January 2024.

Conclusion:

ACC Ltd has had a momentous journey in the Indian stock markets over the past nine decades. Despite ups and downs, it has generated enormous wealth for long term shareholders. ACC’s strong track record, prudent investments and positioning as a sustainability focused company make it well placed to continue doing well in the long run. For investors, ACC remains an attractive proxy play on India’s cement demand growth story.

FAQs on ACC Share Price

What was ACC’s IPO price and when did it list?

ACC got listed in 1936 at an IPO price of Rs 10 per share.

What is ACC’s current market capitalization?

ACC’s current market cap is around Rs 33,000 crores.

What has been ACC’s compounded annual return over last 20 years?

ACC has delivered around 13.5% compounded annual return over the past 20 years.

Who are the major shareholders of ACC Ltd?

Holcim group and Ambuja Cements are the major shareholders, holding over 50% stake.

How has ACC performed in last 1 year compared to Nifty?

ACC stock has declined around 15% in 1 year compared to Nifty’s flattish return.

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