Buy JK Cement, target price Rs 1635: HDFC Securities

JK Cement Ltd., incorporated in the year 1994, is a Mid Cap company (having a market cap of Rs 11527.26 Crore) operating in Cement sector.

BCCL
Promoters held 58.07 per cent stake in the company as of Jun 30, 2020, while FIIs held 13.42 per cent, DIIs 23.33 and public and others 5.18 per cent.
HDFC Securities has given a buy rating to JK Cement with a target price of Rs 1635. The share price moved up by 0.12 per cent from its previous close of Rs 1487.50. The stock’s last traded price is Rs 1489.25.
JK Cement Ltd., incorporated in the year 1994, is a Mid Cap company (having a market cap of Rs 11527.26 Crore) operating in Cement sector.

Financials
For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 1004.85 Crore, down 34.99 % from last quarter Sales of Rs 1545.65 Crore and down -30.09 % from last year same quarter Sales of Rs 1437.25 Crore Company has reported net profit after tax of Rs 49.95 Crore in latest quarter.
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Investment Rationale
The brokerage remains bullish on the company, owing to healthy traction across both business segments. In grey cement, it expanded capacity in lucrative markets along with margin expansion tailwinds. In white/putty, it is steadily increasing capacity, and its leadership presence continues to support robust margin. THe brokerage has increased FY21/22/23E EBITDA by 9/3/3% each, factoring in higher volumes. It maintains BUY with a revised target price of Rs 1,635.

Promoter/FII Holdings
Promoters held 58.07 per cent stake in the company as of Jun 30, 2020, while FIIs held 13.42 per cent, DIIs 23.33 and public and others 5.18 per cent.
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