ACC Ltd fell 2.4 per cent in morning trade after posting an about 68 per cent fall in October-December consolidated net profit.
At about 10.15 am, the stock was trading at Rs 1,238.00, down Rs 31.05 or 2.45 per cent.
HSBC has cut target price to Rs 1,139 from Rs 1,165, and retained "reduce" rating.
It said the cement industry is "plagued by overcapacity and sluggish demand conditions".
ACC has been the worst performer among cement companies it covers due to disappointing volume growth, HSBC said in its report.
Deutsche Bank has also cut the target price to Rs 1,315 from Rs 1,375.
It said "we retain 'Hold' only because of the company's strong balance sheet".