JK Cement Ltd. share price target

JK Cement's results were broadly in line with our estimates. JK's revenues increased 7.1% YoY to | 1,115.6 crore (vs. I-direct estimate: | 1,097.1 crore) mainly led by 3.9% YoY rise in grey cement revenues to | 775.1 crore (driven by higher volumes: up 10.9% YoY). White cement revenues rose 15.4% YoY mainly led by 9.1% YoY growth in volumes Blended EBITDA/tonne declined 31.4% YoY to | 650/tonne (vs I-direct estimate: | 652/tonne) mainly led by 23.3% YoY increase in power cost/t and 9.7% YoY increase in freight cost/t...

J.K. Cement (JKC) has reported an in-line operating performance in 1QFY19, as EBITDA stood at Rs1.5bn (-24% YoY and -17% QoQ) vs. our estimate of Rs1.53bn. Blended EBITDA/tonne stood at Rs657 compared to Rs931 and Rs669 in 1QFY18 and 4QFY18, respectively. Operating cost/ tonne broadly remained flat sequentially at Rs4,169 mainly aided by sharp decline in freight cost/tonne. Notably, Power & Fuel cost/tonne stood at Rs1,065 (+25% YoY and +2% QoQ), while freight cost/tonne came in at Rs1,141 (+4% YoY and -6% QoQ). Average NCR for grey cement stood at Rs3,806/tonne (-4.6% YoY and -2.1% QoQ) mainly marred by subdued realisation in Northern and Southern markets. Grey cement sales volume including clinker of 28k tonne ...

31 July 2018 1QFY19 grey cement volumes (incl. clinker) increased 9% YoY to 2.03mt, led by healthy growth in cement volumes, partially offset by lower clinker sales. White cement volumes rose 9% YoY to 0.28mt, driven by healthy growth in the wall putty segment due to ramp-up of new capacity. Grey cement realizations fell 2% QoQ to INR3,807/ton, with the change in ex-factory sales reflected in lower freight cost/t (-5% QoQ). Revenue grew 7% YoY to INR11.16b, led by healthy volumes, partially offset by weaker realizations. EBITDA fell 24% YoY (-17% QoQ) to INR1.5b due to weaker realizations and cost push in the form of higher power & fuel cost/t and employee cost/t. Margin shrank 5.5ppYoY (-0.3pp QoQ) to 13.5%. Blended EBITDA/t declined 30% YoY (-3% QoQ) to INR650.

ICICI Securities Ltd | Retail Equity Research JK Cement reported mixed Q4FY18 results. Revenues increased 28.0% YoY to | 1,316 crore (above I-direct estimate | 1,248.8 crore) mainly led by 34.9% YoY rise in grey cement revenues to | 932.7 crore (driven by higher volumes: up 27.3% YoY and increase in realisation: up 6.0%...

J.K. Cement's (JKC) has delivered a muted operational performance in 4QFY18 with its EBITDA growing by just 0.3% YoY and 7% QoQ to Rs1.8bn (vs. our estimate of Rs1.9bn) primarily owing to higher-than-estimated jump in Power & Fuel cost. Grey cement and white cement (including Wall Putty) EBITDA came in at Rs650mn (-48% YoY and -15% QoQ) and Rs1.17bn (+106% YoY and +24% QoQ), respectively. Continuing to remain saviour, value-added products contributed >64% to its total operating profit. Grey Cement EBITDA/tonne stood at mere Rs277 vs. Rs670 and Rs390 in 4QFY17 and 3QFY18, respectively. Notably, average NCR rose by 5.8% YoY and 1.9% QoQ to Rs3,887/tonne. Brownfield expansion at Mangrol and Nimbahera (2.5mnT clinker...

We reiterate Buy on JK Cement (JKCE) and with a revised TP of Rs1,180. During Q4FY18, while strong volume growth across both grey (+29% YoY) and white/putty (+11 YoY) drove 28% standalone revenue increase, grey realisation remained insufficient to pass on the cost inflation. Thus, EBITDA fell 5% YoY. On a downward revised PAT base of Q4FY17 and led by lower interest expense, PAT surged 105% YoY. JKCE's reduced debt on books leading to net D:E reduction to 1.1x in FY18 vs 1.6x YoY. We remain bullish on the company owing to stable outlook for white/putty business and increasing demand...

JK Cement reported a revenue of ` 11.2bn (+26.8% YoY, +1.7% QoQ), 2% higher than D'est. The cement dispatches during the quarter rose by 20.3% YoY (+4.5% QoQ). Grey Cement dispatches increased by 21.5% YoY (+5.1% QoQ). The white cement & wall putty sales during the quarter stood at 0.3Mt (+12.5% YoY, flat on QoQ). The blended realisation for the quarter increased by 5.4% YoY (-2.7% QoQ), Grey Cement realisation increased...

JK Cement reported a revenue of ` 11.2bn (+26.8% YoY, +1.7% QoQ), 2% higher than D'est. The cement dispatches during the quarter rose by 20.3% YoY (+4.5% QoQ). Grey Cement dispatches increased by 21.5% YoY (+5.1% QoQ). The white cement & wall putty sales during the quarter stood at 0.3Mt (+12.5% YoY, flat on QoQ). The blended realisation for the quarter increased by 5.4% YoY (-2.7% QoQ), Grey Cement realisation increased...

JK Cement (JKCE) has announced 4 mnt brownfield expansion at its Mangrol unit in Rajasthan (North) at cost of Rs 20 bn. Project includes two satellite grinding units in Western UP (1.7 mnt) and Gujarat (0.7 mnt) and 13 MW WHR power plant.

Sector: Cement /Small Cap | Earnings Update 3QFY18 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 0.4MTPA (second only to UltraTech, which has capacity of 0.55MTPA). The company also manufacturers putty and has an installed capacity of 0.3MTPA. The company has also installed a grey cum white cement plant with an installed capacity of 0.6MTPA (white cement) and 1.02MTPA (grey cement) in Fujairah (UAE) in a 90:10 JV with the Government of Fujairah. It has also expanded its grey cement capacity by 3...