Broker Stock Recommendations for November 25, 2025: Buy or Sell?
Emkay Global has recently downgraded ACC to a “sell” rating, citing concerns over weak margin trends and slower capital expenditure execution. The target price for ACC has been significantly reduced from Rs 2,280 to Rs 1,600. Analysts have adjusted ACC’s valuation to 7x EV/EBITDA, down from 9x, reflecting deteriorating fundamentals. They also noted a concerning increase in working capital days and a drop in cash reserves, leading to a preference for Ambuja Cements over ACC due to better profitability and operational efficiency.
ACC’s Financial Challenges
ACC is facing significant financial challenges that have prompted analysts to revise their outlook. The company’s EBITDA expectations for FY27 have been cut by approximately 12%, primarily due to margin pressures and a higher proportion of traded goods. Analysts have pointed out that increased inter-group trading is adversely affecting ACC’s margins and operational independence. The rising share of traded goods limits the company’s pricing power and ability to premiumize its products. Furthermore, ACC’s working capital has worsened, now standing at 57 days, compared to previous negative working capital levels. This shift indicates a growing strain on the company’s liquidity and operational efficiency.
Declining Cash Reserves and Capacity Expansion
In addition to the margin pressures, ACC’s cash reserves have fallen to a multi-year low of Rs 880 crore, attributed to higher working capital consumption. This decline raises concerns about the company’s financial stability and its ability to invest in future growth. Analysts have also highlighted that ACC’s capacity expansion is projected to grow at a compounded annual rate of only about 7% from FY25 to FY28, which is below market expectations. This limited growth potential further compounds the challenges facing ACC, leading analysts to favor Ambuja Cements, which is perceived to have better profitability and synergy benefits within the group.
Other Market Insights
In other market developments, CLSA has maintained an “outperform” rating on Hindustan Aeronautics, setting a target price of Rs 5,436. This follows the recent appearance of the Tejas Mk1 aircraft at the Dubai Air Show, where analysts identified potential causes for its performance issues. Meanwhile, UBS has initiated coverage of Shaily Engineering with a “buy” rating and a target price of Rs 4,000, citing the company’s strong growth potential. Jefferies has also issued a “buy” recommendation for Shyam Metalics, with a target price of Rs 1,050, highlighting the company’s promising growth trajectory in India’s metals sector.
Future Prospects for IKS Health
Nomura has given a “buy” rating to IKS Health, setting a target price of Rs 2,000. Analysts view the company as an attractive investment in the U.S. healthcare provider space, anticipating a 12% compounded annual growth rate in the U.S. healthcare outsourcing market from CY23 to CY28. IKS Health is recognized for its comprehensive platform and next-generation technology capabilities, positioning it well for future growth. As these companies navigate their respective challenges and opportunities, market analysts continue to monitor their performance closely.
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