Centrum is bearish on JK Lakshmi Cement has recommended sell rating on the stock with a target price of Rs 340 in its research report dated February 07, 2017.
Centrum's research report on JK Lakshmi Cement
In the east JKLC is facing cost headwinds as well as weaker realisation (owing to ongoing expansions), moderating recovery in profitability. Amid ongoing capex to reduce power cost at its eastern operations, JKLC will also have to fund clinker expansion in the north to drive volume growth FY19/20 onwards. This will increase capex rate FY19E onwards and mute deleveraging. We maintain SELL with a lower TP of Rs 340.
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