Sharekhan's research report on JK Lakshmi Cement
JKL reported a strong beat on operational parameters for Q4FY2022 led by higher-than-expected volume growth along with reduction in cost of production. Management expects further improvement in operational profitability going ahead led by operational efficiencies provided energy costs do not play a major spoilsport. UCW expansion at Rs. 1650 crore capex remain on track for FY2024 end commissioning and would provide next leg of growth from FY2025.
We retain our Buy rating on JK Lakshmi Cement with a revised PT of Rs. 600 lowering valuations multiple to factor in near term energy-related uncertainties and considering favourable valuation.
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