JK Cement Ltd. share price target

grinding unit). New unit at Mangrol operates at full capacity and the relatively inefficientNimbaheraunitoperationsareinalignmentwithdemand. 9 Fuelpriceshavecorrectedbyanother6%inQ4butfurtherreductionsareunlikely....

grinding unit). New unit at Mangrol operates at full capacity and the relatively inefficientNimbaheraunitoperationsareinalignmentwithdemand. 9 Fuelpriceshavecorrectedbyanother6%inQ4butfurtherreductionsareunlikely....

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...

J.K. Cement's (JKC) 3QFY16 operating performance was ahead of expectation as EBITDA came in at Rs1.25bn (+28% yoy) v/s expectation of Rs1.12bn. EBITDA/ tonne (blended) came in at Rs623 v/s Rs565 and Rs582 reported in 3QFY15 and 2QFY16, respectively. Notably, grey cement EBITDA/tonne remained subdued and stood at Rs257 as against Rs244 in 3QFY15. We continue to believe that possible improvement in utilizations in Southern plants and likely price recovery in Northern markets are key catalysts to improve grey cement operating performance. Further, possible deleveraging of balance sheet from FY17E will aid it to gain further traction...

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...

JK Cement (JKCem)s 2QFY2016 reported numbers have come in better than our estimates. The companys net sales grew by 4.8% yoy to Rs867.9cr (above our estimate of Rs832.2cr). The companys blended sales volume increased by 2.8% yoy, led by 4.3% yoy growth in the white cement (including putty) business. Blended realization/tonne, at Rs4,743, increased 2.0/6.3% yoy/qoq during the quarter (above our estimate of Rs4,596). The EBITDA increased by 21.4% yoy to Rs106.4cr, which is above our estimate of Rs97.1cr. The EBITDA/tonne improved by 18.1% yoy to `581 and is above our estimate of Rs536. The Net profit declined 57.5% yoy to Rs13.7cr, on account of higher depreciation and interest expenses. EBITDA margin at 12.3%, up 167bp yoy: For 2QFY2016, JKCem posted a marginal 4.8% yoy increase in its top-line to Rs867.9cr. The EBITDA came in at Rs106.4cr, an increase of 21.4% yoy (above our estimate of Rs97.1cr). The EBITDA margin at 12.3% is above our estimate of 10.8%, led by better than expected realization and flat operating costs. The operating cost/tonne remained flat yoy at Rs4,161. The EBITDA/tonne came in at Rs581, up by 18.1% yoy, due to increase in realization and flat operating costs. Outlook and valuation: Going ahead,...

8 Cut volume guidance for FY16 given low demand this was essential to ensure that pricingdisciplineinnorthIndiasustains. 8 Nearterm pain will sustain, but JKCE has a competitive advantage over peers in the...

JK Cement's Q2FY16 operational performance was in-line with our estimates. Revenue/EBITDA came at Rs 8.68bn/Rs 1.06bn against our estimates of Rs 8.55 bn/Rs 1.05 bn. Grey cement volume growth tapered down to 2.6% YoY (lowest in the last 6 quarters) while wall putty continued to register healthy growth.

Performance beats estimates; dismal volume remains a setback J.K. Cement's (JKC) 2QFY16 performance was marginally better than our estimate as EBITDA (adjusted for DMF provisioning of Rs125mn) came in at Rs1.19bn against our estimate Rs1.06bn. Adjusted EBITDA/tonne (blended) came in at Rs651 v/s Rs494 and Rs466 in 2QFY15 and 1QFY16 respectively. Notably, grey cement EBITDA/tonne remained subdued and stood at Rs346 as against Rs194 in the corresponding quarter last year. We believe that operating synergies from the expected pickup in utilization from the new unit along with commercial operation...