Buy JK Lakshmi Cement; target of Rs 388: Anand Rathi

Anand Rathi 's research report on JK Lakshmi Cement

Good rural demand pushed up JK Lakshmi’s Q2 volumes 16% y/y, recouping most of the Q1 volume drop. The company announced its long-awaited 2.5m-ton capacity expansion in the North, though at UCW due to logistics benefits and limestone available there. We believe cost and price pressures in coming quarter, however, will be offset by higher volumes. Delevering and the WHRS expansion will be positives.

Outlook

We retain our Buy call, with a target of Rs388 (Rs370 earlier).