Buy JK Lakshmi Cement; target of Rs 410: Sharekhan
Sharekhan is bullish on JK Lakshmi Cement has recommended buy rating on the stock with a target price of Rs 410 in its research report dated February 02, 2021.
February 09, 2021 / 10:29 PM IST
Sharekhan's research report on JK Lakshmi Cement
JKL reported better-than-expected performance for Q3FY2021 led by a beat in volume offtake, higher other income, fall in interest costs and lower ETR. EBITDA/tonne rose 9% to Rs. 712.We expect strong demand environment to sustain during Q4 along with increase in prices expected during February 2020 in its region of operations. Impact of higher petcoke prices to be felt from Q1FY2022. Company to raise equity at UCW level through rights issue for its Rs. 1,500 crore expansion plan, which is expected to ease clinker and capacity constraints.
We retain a Buy rating on JK Lakshmi Cement with an unchanged PT of Rs. 410 given attractive valuations and healthy net earnings CAGR over FY2021E-FY2023E.
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