Accumulate JK Cement; target of Rs 1413: Dolat Capital

Dolat Capital's research report on JK Cement

JK Cement in its FY20 annual report, highlights about growing together and staying ahead of the curve. JK Cement has posted a strong all round performance in a challenging year and a challenging external environment that was dampened by the Covid-19 pandemic. The company was able to demonstrate such growth driven by resource efficiency, expanding capacities, growing prominence across urban and rural markets. The company continuously improves resource efficiency in clinker and cement production process by optimizing energy usage, utilizing generated waste and targeting higher alternate fuel and raw material usage. Also, they are trying to limit the usage of natural resources in grey cement manufacturing and increase the share of additives like fly ash and slag. On the demand front, outlook remains buoyant and any weakness is likely to be transient.

Outlook

Cement demand is likely to return to its normal growth trajectory, especially aided by the rural market where pandemic seems to have had a limited impact.

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