JK Cement Ltd., incorporated in the year 1994, is a Mid Cap company (having a market cap of Rs 27445.68 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 30-09-2021, the company reported a Consolidated Total Income of Rs 1942.96 Crore, up 11.57 % from last quarter Total Income of Rs 1741.47 Crore and up 16.84 % from last year same quarter Total Income of Rs 1662.95 Crore. Company reported net profit after tax of Rs 149.50 Crore in latest quarter.
Investment Rationale
The brokerage estimates JKCE’s grey cement business would grow at a faster pace (FY21-24E revenue/EBITDA CAGRs: 20/21%), riding on capacity ramp- up and cost efficiencies. However, the brokerage estimates white/putty’s growth would slow down (revenue/EBITDA CAGRs: 12/4%), given that the rising competition from paint companies has moderated the segmental margin and the UAE plant’s scale-up remains challenged. It trims EBITDA estimates for FY22/23E by 8/3%, factoring in the margin pressure in the white/putty segment. It values JKCE at 11.5x its consolidated Sep-23E EBITDA), leading to a TP of INR 3,210/sh. Owing to its expensive valuation, it downgrades rating to REDUCE (from ADD).
Promoter/FII Holdings
Promoters held 57.62 per cent stake in the company as of 30-Sep-2021, while FIIs owned 17.44 per cent, DIIs 20.04 per cent.
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