Although we have seen the volume growth being sustained, it has come at the cost of realisation. On a yoy basis, the pricing scenario remains soft, as the all India average price is down by 8% for the first two weeks of April. South and North prices are down by 15% and 14% respectively. With the companies vying for market share amid sluggish demand, it would be difficult to pass on the increase in freight costs or to sustain any significant price increase. The impending ban on petcoke by the Government would further compound problems for the cement companies like ACC. ACC is taking too long to improve its profitability per ton which could now get further postponed as the merger with Ambuja Cement has been put on hold. In the process the rerating of its valuation could take longer. We have revised the estimates downwards for CY18 and CY19 and ascribe a lower valuation multiple to the stock. Existing investors who have long term view can continue to hold the stock for sequential targets of Rs 1445 ($110 CY19E EV/Ton and 18.3x CY19E EPS) and Rs 1510 ($115 CY19E EV/Ton and 19.2x CY19E EPS) over 3-4 quarters.