ICICI Direct's research report on JK Lakshmi Cement
JK Lakshmi mainly caters to north, west & eastern markets with total capacity of 13.3 MT (including subsidiary). It has integrated units at Sirohi, Udaipur (Rajasthan) and Durg (Chhattisgarh) while grinding units are located at Jhajjar (Haryana), Cuttack (Odisha), Kalol and Surat (Gujarat). It also has 105 MW power plant (74 MW CPP, 21 MW WHRS, and 10 MW solar) that fulfils its 75% of total power requirements • The company is now adding 2.5 MT cement capacity (1.5 MT clinker) through its subsidiary unit UCWL at a cost of ~Rs 1650 crore.
Outlook
Post sharp recent rally, we downgrade our rating from BUY to HOLD. We value it at Rs 580 i.e.6.5x FY24E EV/EBITDA.
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