Buy J K Lakshmi Cement; target of Rs 710: Axis Securities

Axis Securities is bullish on J K Lakshmi Cement has recommended buy rating on the stock with a target price of Rs 710 in its research report dated August 14 2023.

Broker Research

August 16, 2023 / 13:29 IST

Buy

26 Aug, 2025 12:21

Volume

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Axis Securities report on J K Lakshmi Cement

JK Lakshmi Cement (JKLC) is a dominant player in the cement industry in its key markets of North and West India, generating 75% of its revenue in these two regions. The company also has a significant market presence in eastern India. The company established its first cement plant in 1982 with a capacity of 0.5 mntpa, which has now grown to a total capacity of 13.9 mntpa and a clinker capacity of 8.7 mntpa ( on a consolidated basis). A strong network of over 7,000 cement dealers in the states of Madhya Pradesh, Chhattisgarh, Rajasthan, Gujarat, Uttar Pradesh, Punjab, Delhi, Haryana, Jammu & Kashmir, Maharashtra, Odisha and West Bengal enables the company to efficiently serve its customers across India. The company has 3 integrated and 4 grinding plants at strategic locations.

Outlook

We value JKLC at 7.5x FY25E EV/EBITDA and assign a BUY rating to the company with a TP of Rs 710/share, implying an upside of 12% from the CMP.

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