Motilal Oswal's research report on J K Cement
JKCE’s 4QFY23 operating performance was in line with our estimates as higher-than-estimated realization/t offset higher costs. Consolidated EBITDA came in at INR3.5b (est. INR3.4b), while EBITDA/t stood at INR748 (est. INR753). Adj. PAT came in at INR1.2b (est. INR1.4b). The ramp-up of the Central India plant expansion was impressive as it achieved utilization of 60%/80% in 4QFY23/Mar’23 and generated EBITDA in the first full quarter of operations. It targets grey cement volume growth of ~15% YoY in FY24 and EBITDA/t of INR1,000+ in 2HFY24.
Outlook
We maintain our FY24/FY25 estimates. We prefer JKCE for its consistent expansion plans. We maintain BUY with a revised TP of INR3,675, valued at 14x FY25E EV/EBITDA (v/s Sep’24E EV/EBITDA earlier).
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