Hold JK Cement, target price Rs 2700: Emkay Global

Emkay Global has hold call on JK Cement with a target price of Rs 2700. The current market price of JK Cement Ltd. is Rs 2386.2. 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 18563.70 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
The brokerage broadly maintains FY23-24 EBITDA estimates, with an unchanged TP of Rs2,700 (Mar'23). Its DCF-based TP implies 1-year forward EV/EBITDA of 12x. Maintain Hold as risk-reward appears to be balanced.

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.