HDFC Securties has maintianed outperformer rating on JK Cement with target price of Rs 236, in research report dated on November 20, 2007. "The stock currently trades at a PE of 5.4x FY08 & 5.7x FY09 EPS estimates of Rs. 36.9 & Rs. 35.5 respectively. The EV/EBITDA valuation works out to 4.6x FY08 & 5x FY09 respectively. The EV/tonne numbers are USD 111 & USD78 for FY08 & FY09 respectively. With such attractive valuations, we maintain the OUTPERFORMER rating on the stock with a price target of Rs 236. Going forward, the ability to manage "cost pressures", given that these account for almost a fourth of most companies' revenues, will distinguish the efficient players from the laggards."
according to HDFC Securities research reprot.
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