Buy JK Cement, target price Rs 3170: ICICI Securities

ICICI Securities has buy call on JK Cement with a target price of Rs 3170. The current market price of JK Cement Ltd. is Rs 2143.45. Time period given by analyst is one year when JK Cement Ltd. price can reach defined target.

JK Cement Ltd., incorporated in the year 1994, is a Mid Cap company (having a market cap of Rs 16495.23 Crore) operating in Cement sector.

JK Cement Ltd. key Products/Revenue Segments include Cement and Other Operating Revenue for the year ending 31-Mar-2021.



Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 2392.98 Crore, up 16.37 % from last quarter Total Income of Rs 2056.28 Crore and up 10.37 % from last year same quarter Total Income of Rs 2168.19 Crore. Company reported net profit after tax of Rs 199.65 Crore in latest quarter.

Investment Rationale
JKCE may trade at a premium to its long term historical average once the recent concerns around sharp fuel cost escalation recede. It maintains BUY with an unchanged target price of Rs3,170/sh based on 13xFY24E EV/E, implying 50% upside. JKCE remains high conviction preferred pick in the sector. Key risks: Lower demand / pricing and high cost escalation.

Promoter/FII Holdings
Promoters held 45.82 per cent stake in the company as of 31-Mar-2022, while FIIs owned 16.5 per cent, DIIs 20.63 per cent.