NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
JK Cement Ltd.'s consolidated Ebitda grew 19% YoY to Rs 4.9 billion (estimate: Rs 4.7 billion), and Ebitda/tonne increased 14% YoY to Rs 1,003 (estimate: Rs 949) in Q1 FY25. The impact of lower grey cement realisation was offset by -
higher other operating income; and
lower other expenses.
Operating profit margin surged 2.6% YoY to 17.3% (estimate 16.3%). Adjusted PAT increased 49% YoY to Rs 1.9 billion (estimate: Rs 1.5 billion). Management highlighted its long-term capacity expansion plan of 45- 50 mtpa (versus 24 mtpa currently), including the greenfield expansion at Jaisalmer, followed by brownfield expansions at Muddapur (Karnataka), Panna (MP), and Orrisa plants.
JK Cement reiterated its cost-saving target of Rs 150-200/tonne over the next two years through logistics cost optimisation and the increasing share of green energy and alternative fuel.
We broadly maintain our FY25/FY26E Ebitda. We prefer JK Cement due to its steady expansion and stronger execution strategy versus peers.
We value JK Cement at 15 times June-26E EV/Ebitda to arrive at our target price of Rs 5,150. Reiterate Buy.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
