During 4QFY20, grey capacity ramp-up in north moderated covid-led vol loss in 4QFY20. Grey segment’s profit continued to soar in 4Q and in FY20 on robust pricing in north/central and falling energy costs. Similarly, healthy pricing and low fuel cost even firmed up white/putty profitability in 4Q/FY20. Thus, consol net debt/EBITDA in FY20 fell to 2.3x (from 2.5x), despite 6-yr high capex spend.
OutlookWe retain BUY on JK Cement (JKCE) with a TP of Rs 1425. We like the co for its increased grey cement capacity in lucrative north markets and as its white/putty profits continue to firm up (on a high base).
For all recommendations report, click hereDisclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
Read More
