Hold JK Lakshmi Cement, target price Rs 775: ICICI Direct

ICICI Direct has hold call on JK Lakshmi Cement with a target price of Rs 775. The current market price of JK Lakshmi Cement is Rs 691.7. Time period given by analyst is 12 months when JK Lakshmi Cement price can reach defined target.

JK Lakshmi Cement, incorporated in the year 1938, is a Mid Cap company (having a market cap of Rs 8131.59 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
While growth remain a concern till the time new capacity gets commissioned, cooling down of cost pressure along with increase in renewable energy share remain key positives for margin expansion.

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.