Geojit Research recommended hold rating on JK Lakshmi Cement with a target price of Rs 339 in its research report dated August 07, 2018.
Geojit's research report on JK Lakshmi Cement
JK Lakshmi Cement (JKLC) is part of JK group mainly focused in North, West and Eastern regions of India with a consolidated capacity of 12.5MT. Q1FY19 revenue grew mere 2.5%YoY due to flat growth in volumes and 2.5% YoY growth in realisation. Low realisation was due to pricing pressure witnessed in North in the non-trade segment and the competition impacted volumes also.
Factoring continued pressure in volumes and cost, we downgrade our rating to Hold (from Buy) by valuing at EV/EBITDA of 9x for standalone and arrive at a target of Rs339 (earlier Rs.418).
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