Buy JK Lakshmi Cement; target of Rs 950 Sharekhan

Buy

Sharekhan's research report on JK Lakshmi Cement

Q2 standalone revenues met expectations aided by healthy volume growth y-o-y. EBITDA/tonne beat estimates led by higher realisations and a flattish opex/tonne. Company trimmed consolidated volume growth guidance to 13-15% y-o-y, as we expected. Its target of Rs. 1,000 EBITDA/tonne in 18 months stays intact. It commissioned a 1.35 mtpa clinker unit at UCW wile 2.5 mtpa grinding unit gets preponed to April 2024. It targets to achieve a 30 mtpa capacity by 2030 remains intact.

Outlook

We retain a Buy on JK Lakshmi Cement Limited (JKL) with a revised PT of Rs. 950, increasing our valuation multiple to factor in healthy earnings growth outlook in 2-3 years.

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JK Lakshmi Cement - 05 - 10-2023 - khan