Buy JK Cement, target price Rs 3550: Motilal Oswal Financial Services

Motilal Oswal Financial Services has buy call on JK Cement with a target price of Rs 3550. The current market price of JK Cement is Rs 3227.05 .

JK Cement, incorporated in the year 1994, is a Mid Cap company (having a market cap of Rs 24733.95 Crore) operating in Cement sector.

Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 2249.64 Crore, down -1.65 % from last quarter Total Income of Rs 2287.31 Crore and up 15.78 % from last year same quarter Total Income of Rs 1942.96 Crore. Company has reported net profit after tax of Rs 111.25 Crore in latest quarter.

The company’s top management includes Mrs.Sushila Devi Singhania, Mr.Saurabh Chandra, Mrs.Deepa Gopalan Wadhwa, Mr.Satish Kumar Kalra, Mr.Sudhir Jalan, Mr.Paul Heinz Hugentobler, Dr.K B Agarwal, Mr.Mudit Aggarwal, Mr.Nidhipati Singhania, Mr.Ajay Narayan Jha, Mr.Ajay Kumar Saraogi, Mr.Madhavkrishna Singhania, Mr.Raghavpat Singhania, Mr.Ashok Sinha. Company has S R Batliboi & Co. LLP as its auditors. As on 30-09-2022, the company has a total of 8 Crore shares outstanding.

Investment Rationale
Brokerage is positive on the counter as it believes further upside will be driven by EBITDA growth, improvement in profitability of the Gray Cement business and higher operating cash flow, which will support expansion as well as the deleveraging of its Balance Sheet.

Promoter/FII Holdings
Promoters held 45.84 per cent stake in the company as of 30-Sep-2022, while FIIs owned 16.08 per cent, DIIs 21.9 per cent.