Motilal Oswal is bullish on J K Cement has recommended buy rating on the stock with a target price of Rs 1322 in its research report dated May 16, 2017.
Motilal Oswal's research report on J K Cement
4QFY17 revenue increased 7.7% YoY to INR 10.2b (est. of INR 9.8b). Grey cement revenue rose 6% YoY to INR 6.9b (est. of INR 6.5b) due to higher realization in north operations. White cement revenue increased 10% YoY to INR 3.3b, led by growth of 5% YoY in volumes and 4% YoY in realizations.
With lower immediate capex and FCFE of INR 4-5b over FY17-FY19, there remains visibility of deleveraging from FY17 peak of INR 31b. We maintain Buy with TP of INR 1,322 (14x FY19E white cement EBITDA and 10x FY19E grey cement EBITDA).
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