The Economic Times daily newspaper is available online now.

    Buy JK Lakshmi Cement, target price Rs 870: Motilal Oswal Financial Services

    Synopsis

    The brokerage values the company at 8.5x FY25E EV/EBITDA (v/s Sep’24E earlier) to arrive at its TP of INR870.

    JK Lakshmi CementETMarkets.com
    The brokerage values the company at 8.5x FY25E EV/EBITDA (v/s Sep’24E earlier) to arrive at its TP of INR870.
    Motilal Oswal Financial Services has buy call on JK Lakshmi Cement with a target price of Rs 870. The current market price of JK Lakshmi Cement is Rs 708.

    JK Lakshmi Cement, incorporated in the year 1938, is a Mid Cap company (having a market cap of Rs 8343.98 Crore) operating in Cement sector.

    JK Lakshmi Cement key Products/Revenue Segments include Cement, Others and Other Operating Revenue for the year ending 31-Mar-2022.

    Financials
    For the quarter ended 31-03-2023, the company has reported a Consolidated Total Income of Rs 1878.76 Crore, up 19.21 % from last quarter Total Income of Rs 1576.06 Crore and up 16.28 % from last year same quarter Total Income of Rs 1615.66 Crore. Company has reported net profit after tax of Rs 114.83 Crore in latest quarter.

    The company’s top management includes Mr.Bharat Hari Singhania, Mrs.Vinita Singhania, Mr.B V Bhargava, Dr.Raghupati Singhania, Mr.N G Khaitan, Mrs.Bhaswati Mukherjee, Dr.K N Memani, Mr.Ravi Jhunjhunwala, Mr.Arun Kumar Shukla. Company has S S Kothari Mehta & Co as its auditors. As on 31-03-2023, the company has a total of 12 Crore shares outstanding.

    Investment Rationale
    Management reiterates its aim to achieve an EBITDA/t of INR1,000, driven by optimization of geo-mix, increasing trade sales in more profitable markets, logistics optimization and plant efficiencies. The company will unveil its next leg of expansion plans in FY24E/FY25E.

    The stock trades at 8.1x/6.3x FY24E/FY25x EV/EBITDA (v/s its 10-yearaverage one-year forward EV/EBITDA of 9.5x). The brokerage values the company at 8.5x FY25EEV/EBITDA (v/s Sep’24E earlier) to arrive at its TP of INR870.

    Promoter/FII Holdings
    Promoters held 46.31 per cent stake in the company as of 31-Mar-2023, while FIIs owned 11.68 per cent, DIIs 27.93 per cent.



    (Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. Please consult your financial adviser and seek independent advice.
    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more


    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
    The Economic Times

    Stories you might be interested in