Hold JK Lakshmi Cement Ltd., target Rs 445.0 : Reliance Securities

Reliance Securities has Hold call on JK Lakshmi Cement Ltd. with a target price of Rs 445.0. The current market price of JK Lakshmi Cement Ltd. is 443.5. Time period given by analyst is Medium Term, when JK Lakshmi Cement Ltd. price can reach defined target. Reliance Securities believes that the initiatives undertaken to improve the Durg plant’s operations along with favourable demand environment in the key markets will ensure JKLC to generate sound profitability, going ahead. However, increased capex (Rs 5 bn till FY18E) and limited clinker capacity may pose challenge to JKLC in the near to medium term.