Buy JK Lakshmi Cement with a target at Rs 415: Prabhudas Lilladher
K Lakshmi Cement's market positioning would significantly improved post commissioning of its new 1.8mtpa plant in Udaipur (Rajasthan) on the proximity of plant to the key markets.
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| Updated: Prabhudas Lilladher maintains a buy rating on JK Lakshmi Cement post March quarter results with a 12-month target price of Rs 415.
The beat was driven by sharp fall in costs, more than making up for lower realisations. Newly commissioned plant at Durg (Chhattisgarh) operated at 100% utilisation during the quarter on the back of strong demand and improved market reach.
JK Lakshmi Cement's market positioning would significantly improved post commissioning of its new 1.8mtpa plant in Udaipur (Rajasthan) on the proximity of plant to the key markets, said the report.
"Backed by efficient operations, play on large capacity base (12mtpa by Q2FY17) and attractive valuations, we reiterate 'BUY' with revised PT of Rs415, EV/EBITDA of 10x FY18E," it added.
The beat was driven by sharp fall in costs, more than making up for lower realisations. Newly commissioned plant at Durg (Chhattisgarh) operated at 100% utilisation during the quarter on the back of strong demand and improved market reach.
JK Lakshmi Cement's market positioning would significantly improved post commissioning of its new 1.8mtpa plant in Udaipur (Rajasthan) on the proximity of plant to the key markets, said the report.
"Backed by efficient operations, play on large capacity base (12mtpa by Q2FY17) and attractive valuations, we reiterate 'BUY' with revised PT of Rs415, EV/EBITDA of 10x FY18E," it added.
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