The 30 reports from 8 analysts offering long term price targets
for JK Cement Ltd. have an average target of 1967.43. The consensus estimate
represents a downside of -10.49%
from the last price of 2198.05.
A leading cement manufacturer in the country, JK Cement Ltd is an affiliate of the multi-disciplinary industrial conglomerate JK Organization, which was founded by Lala Kamlapat Singhania. We recommend buy with a target price of Rs. 2,150 valuing company at 10.5x FY22E EV/EBITDA.
JKCE's revenue was in line and EBITDA, EBITDA/tn and PAT was above estimates. Volumes and realization were in line and cost lower than estimates. This is the highest ever quarterly revenue, EBITDA, EBITDA/tn and PAT for the company. JKCE posted strong set of numbers with 23.6%/ 61.7%/ 105.5% YoY growth in revenue/ EBITDA/ PAT to Rs15.5 bn/ Rs4.1 bn/ Rs2.2 bn in Q2FY21 led by 25.5% YoY growth in blended volume, partially offset by...
Background: JK Cements is one of the largest cement players in North India. It manufactures grey cement, white cement and white cement-based wall putty. Currently the grey cement capacity is 10.5MTPA. Domestic white cement capacity is 0.6MTPA (second only to UltraTech). The company also manufacturers putty and has an installed capacity of 0.7MTPA. The company also has plants in Fujairah (UAE) with an installed capacity of 0.6MTPA (white cement) and 1.02MTPA (grey cement) in a 90:10 JV with the Government of Fujairah. It has also expanded its grey cement capacity by 3 MTPA through two split grinding units (1.5 MTPA...
JK Cements Ltd (JKCE) has reported good set of numbers for 2QFY21 with the company reporting its highest ever quarterly revenue/EBITDA/PAT in this quarter. Even EBITDA/mt was the highest ever reported by the company. This was primarily due to higher-than-industry growth in volume as new capacities ramped up and costs were kept in check (down by 9.2% YoY). The company is benefitting from the unprecedented surge in cement demand as recent capacity expansion of 4.2mn mt is ramping up fast, leading to better volume growth without sacrificing pricing. We expect further reduction in costs as upgradation and modernization of line 3 at Nimbhahera gets completed and expanded capacity ramps up. JKCE is currently operating at 70% capacity...
We expect the company to register Revenue/EBITDA/APAT CAGR of 8%/18%/24% from FY20-FY23E driven by volume CAGR of 8% and consistent realisation improvement of 1.5% each over FY22E-23E. We value JKCL at 10.5x FY22E EV/EBITDA to arrive at TP of Rs.2150
JK Cement (JKCE) continued to gain market share in 2QFY21, with volume growing 26% YoY, led by ~40% capacity expansion. EBITDA grew 62% YoY to INR4.1b and was the highest ever, supported by lower cost. This in turn led to the highest ever EBITDA margin of INR1461/t. We raise our FY21E EBITDA by 16%, factoring in lower cost and target price by 15% to INR2,075/share. We reiterate our Buy rating on a 26% EPS...
Completion of phase-I expansion to fuel the growth With the commissioning of split grinding unit of 0.7 MT at Balasinor, the entire 4.2 MT has been commissioned this fiscal. The newly added capacities include 1 MT grinding unit (GU) each in Nimbahara and Mangrol along with 2.6 MT clinker plant and 1.5 MT GU in Aligarh and 0.7 MT GU in Gujarat (Balasinor). Hence, despite challenging year of FY21E we expect the company to clock volume CAGR of 13.2% to 12.5MT in FY22E (grey + white). The full volume benefit potential is expected to get reflected in...
The company has successfully commissioned 0.7 million tonne per annum grey cement grinding capacity at JK Cement works Balasinor, Gujarat and also commenced commercial despataches on 8th October,2020. This expansion takes the total grey cement capacity of the company to 14.67 million tonne
While sharp white/putty volume loss pulled down revenue, EBITDA decline got contained on healthy pricing across markets, healthy discretionary cost controls, and lower fuel prices. APAT fall accelerated on higher capital charges. Volume momentum has improved across both business segments in 2Q, boosting earnings outlook. We retain BUY on JK Cement (JKCE) with a revised target price of Rs 1,635. Post untimely demise of erstwhile MD & Chairman Mr Yadupati Singhania on 13th August, his nephews Mr Raghavpat and Mr Madhavkrishna have been elevated as MD and Dy MD & CEO respectively and his mother Mrs Sushila Devi as Chairperson. In 1QFY21, JKCE's standalone net sales/EBITDA/APAT fell 27/29/50% YoY.
Background: JK Cements is one of the largest cement players in North India. It manufactures grey cement, white cement and white cement-based wall putty. Currently the grey cement capacity is 10.5MTPA. Domestic white cement capacity is 0.6MTPA (second only to UltraTech). The company also manufacturers putty and has an installed capacity of 0.7MTPA. The company also has plants in Fujairah (UAE) with an installed capacity of 0.6MTPA (white cement) and 1.02MTPA (grey cement) in a 90:10 JV with the Government of Fujairah. It has also expanded its grey cement capacity by 3 MTPA through two split grinding units (1.5 MTPA...
The company recorded healthy operating performance despite lower volume driven by savings in variable cost. Although Revenue/Ebitda/PAT degrew by 28%/31% and 60% on consolidated basis YoY on account of COVID-19 related lockdown, it recorded healthy EBITDA margin of 21.2% in line with our expectation
Commissioning of new capacities to fuel growth Out of total capex plan to set up new 4.2 MT capacity, JK Cement has commissioned 3.5 MT cement capacity while commercial dispatches also resumed in the quarter. Newly added capacities include 1 MT grinding unit (GU) each in Nimbahara, Mangrol along with 2.6 MT clinker plant and 1.5 MT GU in Aligarh. The company is also adding 0.7 MT GU in Gujarat (Balasinor), which will take its total capacity to 14.7 MT, a rise of 40% in capacity. Thus, despite a challenging FY21E, we expect it to clock volume CAGR of 12.6%...
JK Cements Ltd (JKCE) has reported relatively weak set of numbers for 1QFY21. Revenue at Rs9.65bn declined by 27.3% YoY as volume and realization declined by 19% YoY and 6.9% QoQ, respectively. White cement volume and realization were down in the quarter as a result of lockdowns in urban areas, which resulted in weak operating performance for the company. On the positive side, operating cost declined sharply by 9.7% YoY on per tonne basis due to lower freight, power & fuel and other expenses. We believe that large part of this cost decline is due to lower commodity prices and lower travel and advertising expenses during the quarter and are likely to increase from these levels. EBITDA/mt came in at Rs1,150, which was down by 12.4% YoY and...
2 September 2020 J K Cement (JKCE)s 1QFY21 result highlights market share gains for the company, led by ~50% capacity expansion in North India. While we raise our FY21E EPS by 10% to factor lower fixed costs, our FY22 estimates are largely unchanged. We reiterate on a 17% EPS CAGR over FY2022E, driven by capacity-led volume growth. 1QFY21 revenue/EBITDA/PAT at INR9.7b/INR2.2b/INR0.8b was down 27%/ 29%/ 49% YoY and was +2%/ +29%/ +57% against our estimate. Volumes declined for grey cement (incl. Total volumes fell 24% YoY to on a higher proportion of grey cement (90% v/s 85%) in the sales mix. Total cost per ton declined 4% YoY (flat QoQ) to INR4,245/t and was 6% beat on our estimate due to a 27% YoY fall in other expenses from lower fixed overheads. However, decline was partly offset by negative operating leverage and the consumption of higher cost petcoke inventory.
JKCE posted muted set of numbers with 27.3%/ 29.1%/ 49.5% YoY degrowth in revenue/ EBITDA/ PAT to Rs9.6 bn/ Rs2.2 bn/ Rs777 mn in Q1FY21 due to 5.1% YoY de-growth in blended realization (-1.4% QoQ) coupled with 23.5% YoY decline in blended volume to 1.77 mt. We expect 10.5%/ 81%/ 0.7% revenue/ EBITDA/ APAT CAGR over FY2022E led by 6.6%/ 13.8% blended volume growth and (1.2%)/ 1.7% blended cement realization growth in FY21E/ FY22E. We increase our revenue and APAT estimates by 9.6%/ 5.1% and 24.9%/ 8.2% for FY21E/ FY22E factoring Q1FY21 results. We broadly maintain our EBITDA margin estimates. We like JKCE because of its...
A leading cement manufacturer in the country, JK Cement Ltd is an affiliate of the multi-disciplinary industrial conglomerate JK Organization, which was founded by Lala Kamlapat Singhania. The Company has over four decades of experience in cement manufacturing.
JK Cement in its FY20 annual report, highlights about growing together and staying ahead of the curve. JK Cement has posted a strong all round performance in a challenging year and a challenging external environment that was dampened by the Covid-19 pandemic. The company was able to demonstrate such growth driven by resource efficiency, expanding capacities, growing prominence across urban and rural markets. The company continuously improves resource efficiency in clinker and cement production process by optimizing energy usage, utilizing generated waste...
