Buy JK Lakshmi Cement, target price Rs 388: Anand Rathi
JK Lakshmi Cement Ltd., incorporated in the year 1938, is a Mid Cap company (having a market cap of Rs 3518.33 Crore) operating in Cement sector.
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Promoters held 46.2 per cent stake in the company as of Sept 30, 2020, while FIIs held 9.9 per cent, DIIs 23.6 per cent and public and others 20.3 per cent.
Anand Rathi has given a buy rating to JK Lakshmi Cement with a target price of Rs 388. The share price moved up by 3.09 per cent from its previous close of Rs 289.80. The stock’s last traded price is Rs 298.75.
JK Lakshmi Cement Ltd., incorporated in the year 1938, is a Mid Cap company (having a market cap of Rs 3518.33 Crore) operating in Cement sector.
Financials For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 1131.74 Crore, up 24.16 % from last quarter Sales of Rs 911.54 Crore and up 11.79 % from last year same quarter Sales of Rs 1012.36 Crore Company reported net profit after tax of Rs 92.95 Crore in latest quarter.
Investment Rationale With pet-coke inventory available for Q3, high fuel costs will start from Q4; logistics cost would be high on strong diesel prices and freight hikes. The Sirohi WHRS expansion by Q2 FY22 will increase the share of renewable energy to ~40%, optimising fuel cost. The company will infuse equity for the UCWL expansion and continue to repay Rs2bn debt p.a. It retains Buy recommendation, with a target of Rs388, on 6.5x FY22e EV/EBITDA. Risks: Demand slowdown; rise in fuel prices. Promoter/FII Holdings Promoters held 46.2 per cent stake in the company as of Sept 30, 2020, while FIIs held 9.9 per cent, DIIs 23.6 per cent and public and others 20.3 per cent.
