JK Lakshmi Cement Ltd., incorporated in the year 1938, is a Mid Cap company (having a market cap of Rs 7719.16 Crore) operating in Cement sector.
JK Lakshmi Cement Ltd. key Products/Revenue Segments include Cement, Others and Other Operating Revenue for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 1226.38 Crore, down -8.64 % from last quarter Total Income of Rs 1342.36 Crore and up 6.68 % from last year same quarter Total Income of Rs 1149.60 Crore. Company reported net profit after tax of Rs 87.29 Crore in latest quarter.
Investment Rationale
Demand outlook is positive given GoI’s strong focus on infra & Housing. The expansion of 2.5MT will support future growth. The stock currently trades at 8.5x 1Yr Fwd EV/EBITDA. It increases valuation to 8x FY23E EV/EBITDA (5Yr Avg=9.9x) to arrive at a revised Target of Rs.730 (earlier Rs.600), upgrade to Accumulate rating considering capacity expansion to take care growth along with deleveraging.
Promoter/FII Holdings
Promoters held 46.01 per cent stake in the company as of 30-Sep-2021, while FIIs owned 12.48 per cent, DIIs 25.29 per cent.
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