JK Lakshmi Cement Ltd., incorporated in the year 1938, is a Mid Cap company (having a market cap of Rs 3370.07 Crore) operating in Cement sector.
Promoters held 46.2 per cent stake in the company as of June 30, 2020, while FIIs held 11.2 per cent, DIIs 19.2 per cent and public and others 23.4 per cent.
ICICI Securities has given buy rating to JK Lakshmi Cement with a target price of Rs 370. The share price moved down by 4.13 per cent from its previous close of Rs 297.80. The stock’s last traded price is Rs 285.50. JK Lakshmi Cement Ltd., incorporated in the year 1938, is a Mid Cap company (having a market cap of Rs 3370.07 Crore) operating in Cement sector.
Financials For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 911.54 Crore, down -19.86 % from last quarter Sales of Rs 1137.47 Crore and down -19.78 % from last year same quarter Sales of Rs 1136.32 Crore. The Company reported net profit after tax of Rs 50.63 Crore in latest quarter.
Investment Rationale Given the likely stability in North prices, JKLC could generate OCF of ~Rs5 bn p.a., which could be sufficient for any future expansion / capex needs. The brokerage broadly maintains FY21E-22E EBITDA with an unchanged target price of Rs370/share based on 7xFY22E EV/E. Promoter/FII Holdings Promoters held 46.2 per cent stake in the company as of June 30, 2020, while FIIs held 11.2 per cent, DIIs 19.2 per cent and public and others 23.4 per cent.
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