ICICI Direct has buy call on JK Lakshmi Cement with a target price of Rs 575. for a time frame of 12 months. The current market price of JK Lakshmi Cement is Rs 525.1.
JK Lakshmi Cement Ltd, incorporated in the year 1938, is a Mid Cap company with a market cap of Rs 6136.49 Crore, operating in Cement sector.
JK Lakshmi Cement's key Products/Revenue Segments include Cement, Others and Other Operating Revenue for the year ending 31-Mar-2020.
Investment Rationale
According to ICICI Direct while the company may remain laggard in terms of growth in FY21-23E due to delayed capacity expansion (likely commissioning Q3FY24E), the focus on strengthening balance sheet with significant debt reduction in FY22E remains a key positive. Given the constructive outlook, ICICI Direct maintains its positive stance on the company on expected strong OCF over the next two years. Hence, it maintains its buy rating with a revised target price of Rs 575/share (earlier Rs 470) (at 7x FY23E EV/EBITDA, $70/t).
Financials
For the quarter ended 31-03-2021, the company has reported a Consolidated Total Income of Rs 1451.72 Crore, up 13.40 per cent from last quarter Total Income of Rs 1280.22 Crore and up 25.50 per cent from last year same quarter Total Income of Rs 1156.76 Crore. Company has reported net profit after tax of Rs 159.12 Crore in latest quarter.
(Views and recommendations given in this section are the analysts' own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.)
JK Lakshmi Cement Ltd, incorporated in the year 1938, is a Mid Cap company with a market cap of Rs 6136.49 Crore, operating in Cement sector.
JK Lakshmi Cement's key Products/Revenue Segments include Cement, Others and Other Operating Revenue for the year ending 31-Mar-2020.
Investment Rationale
According to ICICI Direct while the company may remain laggard in terms of growth in FY21-23E due to delayed capacity expansion (likely commissioning Q3FY24E), the focus on strengthening balance sheet with significant debt reduction in FY22E remains a key positive. Given the constructive outlook, ICICI Direct maintains its positive stance on the company on expected strong OCF over the next two years. Hence, it maintains its buy rating with a revised target price of Rs 575/share (earlier Rs 470) (at 7x FY23E EV/EBITDA, $70/t).
Financials
For the quarter ended 31-03-2021, the company has reported a Consolidated Total Income of Rs 1451.72 Crore, up 13.40 per cent from last quarter Total Income of Rs 1280.22 Crore and up 25.50 per cent from last year same quarter Total Income of Rs 1156.76 Crore. Company has reported net profit after tax of Rs 159.12 Crore in latest quarter.
(Views and recommendations given in this section are the analysts' own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.)
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