JK Cement Ltd. share price target

JK Cement (JKCE) remains amongst the best placed midcap in our opinion from FY17 perspective.Wereiteratethatitisamongstthefirstonesinthemidcapcementspaceto fullyexitcapexmode.AlsomostofthecapexatJKCEhasbeencommissionedlargelyasper...

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 MTPA through two...

JK Cement's Q1FY16 EBITDA at Rs 844mn was lower than our estimate of Rs 989mn as the operating margins came lower than expected (on lower realisations). Though the revenues at Rs 8.1bn came in-line with estimate of Rs 8.6bn. Net profit declined 99% YoY to 1.6mn (lower than our estimate of Rs 63mn).

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 7MTPA. JKCE's 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 is also expanding its grey...

JK Cement's Q4FY15 EBITDA at Rs 1.59bn was ahead of our estimate as the operating margins came higher than our expectation (on lower energy and raw material cost), despite the revenue came in line at Rs 9.11 bn. To factor in the near term slowdown in rural demand, we revise our revenue estimates downwards by 2.7%/1.5% for FY16E/17E.

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 7MTPA. JKCE's 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 is also expanding its grey...

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 7MTPA. JKCE's 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 is installing 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 is also expanding its grey...

JK Cements is one of the largest cement players in North India. It manufactures grey cement, w hite cement and white cement ba sed wall putty. Currently the grey cement capacity is 7MTPA. JKCE's domestic white cement capacity is 0.4MTPA (second only to UltraTech, whic h has capacity of 0.55MTPA). The company als o manufacturers putty and has an installed capacity of 0.3MTPA. The company is installing a grey cum white cement plant with an installed capacity of 0.6MTPA (w hite cement) and 1.02MTPA (grey cement) in Fujairah (UAE) in a 90:10 JV w ith the Government of Fujairah. It is also expanding its grey cement capacity...

JK Cements is one of the largest cement players in North India. It manufactures grey cement, white cement and white cement ba sed wall putty. Currently the grey cement capacity is 7MTPA. JKCE's domestic white cement capacity is 0.4MTPA (second only to Ultra Tech, w hich has capacity of 0.55MTPA). The company also manufacturers putty and has an installed capacity of 0.3MTPA. The company is installing a grey cum white cement plant with an installed capacity of 0.6MTPA (w hite cement) and 1.02MTPA (grey cement) in Fujairah (UAE) in a 90:10 JV w ith the Government of Fujairah. It is also expanding its grey cement capacity...

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 7MTPA. JKCE's 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 is installing 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 is also expanding its grey...