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Buy JK Cement, target Rs 330: Sharekhan
Sharekhan Research has maintianed buy rating on JK Cement with target price of Rs 330. The Broking firm are upgrading their earnings estimates for FY2008 by 19% to Rs 35.7 per share and that for FY2009 by 12% to Rs 28.1 per share.
Sharekhan Stock Broking firm has maintianed buy rating on JK Cement with target price of Rs 330, as per their report on December 04, 2007. "Considering the higher than expected earnings for the current quarter, we are upgrading our earnings estimates for FY2008 by 19% to Rs 35.7 per share and that for FY2009 by 12% to Rs 28.1 per share. We have been bullish on the business prospects of JK Cement on account of its cost-cutting measures and its capex programme. Savings in power cost from the CPPs and higher volumes from its greenfield facility will be the major business drivers for the stock. The stock is trading at 10x its earnings and 6.6x its EV/EBITDA on FY2009 earnings estimate. It commands an EV per tonne of USD 84, which is lower than the benchmark asset valuation of USD 100-115 per tonne. Considering the cheap asset valuations, we maintain our Buy recommendation on the stock with an upgraded price target of Rs 330 per share, leaving an upside of 30%" according to Sharekhan report.
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