Buy JK Lakshmi Cement; target of Rs 770: Sharekhan

Buy

Sharekhan's research report on JK Lakshmi Cement

JKL reported a miss on standalone operational performance for Q1FY2024, led by lower-than-estimated volume growth and higher opex per tonne. Regional sales mix marred performance. The company retains 19% y-o-y consolidated volume growth for FY2024 despite weak Q1. Target of Rs. 1,000 EBITDA/tonne in 18 months to stay. Debt raising plans of Rs. 2500 crore to fund organic/inorganic growth may increase leverage in the near term. UCW expansion is on track. The target to achieve 30mtpa capacity by 2030 remains intact.

Outlook

We retain Buy on JK Lakshmi Cement Limited (JKL) with a revised PT of Rs. 770, factoring downwardly revised estimates and considering favourable risk-reward post a recent stock correction.

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JK Lakshmi Cement - 31 -07 - 2023 - khan