JK Lakshmi Cement (JKLC) reported a weak operating performance, which is marginally below the expectation since EBITDA came in at Rs669mn as against the estimate of Rs705mn. Reported EBITDA/tonne came in at Rs380 v/s Rs503 and Rs381 in 3QFY15 and 2QFY16, respectively. EBITDA margin stood at ~10.3% (down 324bps yoy). Sales volume (including clinker of 0.166mnT) grew strongly by 17% yoy to 1.76mnT. Though we cut our EBITDA estimates by ~15% and ~23% for FY16E and FY17E, respectively to factor subdued realizations, we still maintain our positive view on the stock based on: 1) expected recovery in pricing, 2) strong...