JK Cement Ltd., incorporated in the year 1994, is a Mid Cap company (having a market cap of Rs 23955.09 Crore) operating in Cement sector.
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 1741.47 Crore, down -19.68 % from last quarter Total Income of Rs 2168.19 Crore and up 69.90 % from last year same quarter Total Income of Rs 1024.98 Crore. Company reported net profit after tax of Rs 190.09 Crore in latest quarter.
Investment Rationale
The brokerage expects JKCE to deliver an above-industry volume CAGR of 12% over FY21–23E on account of its expansion in North India. The announced expansion at Panna should continue to drive market share gains over the long term as well as improve its regional mix in favor of North/Central India. It should help the company move down the cost curve by lowering power and fuel as well as other costs. Its TP of INR3,585/share is based on 15x Sep’23E EV/EBITDA for the White Cement business and 12x for the Grey Cement business.
Promoter/FII Holdings
Promoters held 57.6 per cent stake in the company as of June 30, 2021, while FIIs held 16.9 per cent, DIIs 20.6 per cent and public and others 4.9 per cent.
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