Reliance Securities is bullish on JK Cement has recommended buy rating on the stock with a target price of Rs 1260 in its research report dated May 17, 2017.
Reliance Securities' research report on JK Cement
J.K. Cement (JKC) continued to report a healthy and better-than-estimated operating performance in 4QFY17. Its EBITDA came in at Rs 1.81bn (+6% YoY and +22% QoQ) topping our expectation of Rs 1.73bn. While operating cost/tonne was a tad higher than our estimate, a better-than-estimated improvement in average NCR of grey cement (+9% YoY and +4% QoQ to Rs 3,720/tonne) enabled JKC to report better operating performance.
Factoring in the recent realizations up-tick in Western and Southern markets with wall putty expansion in FY19E, we upgrade our EBITDA estimates by 3% and 8% for FY18E and FY19E, respectively. We reiterate our BUY recommendation on the stock with a revised Target Price of Rs 1,260.
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