Buy JK Lakshmi Cement, target price Rs 950: Axis Securities

Axis Securities has buy call on JK Lakshmi Cement with a target price of Rs 950. The current market price of JK Lakshmi Cement Ltd. is Rs 850. Time period given by analyst is 3-4 weeks when JK Lakshmi Cement price can reach defined target. Axis Securities recommended to keep stop loss at Rs 770.

JK Lakshmi Cement, incorporated in the year 1938, is a Mid Cap company (having a market cap of Rs 10017.84 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 30-09-2022, the company has reported a Consolidated Total Income of Rs 1393.15 Crore, down -16.13 % from last quarter Total Income of Rs 1661.05 Crore and up 13.60 % from last year same quarter Total Income of Rs 1226.38 Crore. Company has reported net profit after tax of Rs 61.79 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 30-09-2022, the company has a total of 12 Crore shares outstanding.

Investment Rationale
On the weekly timeframe, the stock has decisively broken out above the “Multiple resistance zone” placed at750-730 levels. The stock also broken above horizontal resistance placed at 816 level. The breakout is accompanied with an increase in volume confirming participation at breakout level. The daily and weekly strength indicator RSI is in bullish mode and weekly RSI holding above its reference line which indicate positive momentum.

Promoter/FII Holdings
Promoters held 46.31 per cent stake in the company as of September 2022 quarter, while FIIs owned 0 per cent DIIs 24.64 per cent.