JK Lakshmi Cement Ltd. share price target

EBITDA down 17% YoY at Rs 716 mn was below consensus and our estimates. Average realization was broadly flat QoQ at Rs 3,525/ton, as cement price rise in Northern region was offset by weak prices in Eastern region.

JK Lakshmi Cement's Q4FY17 revenues were above our estimates while margins were below our expectations. Revenues increased 9.7% YoY to | 806.7 crore (above I-direct estimate of | 768.5 crore) led by 6.1% YoY increase in volumes to 2.3 MT (above I-direct estimate of 2.2 MT) mainly due to healthy demand in the east....

Background: JK Lakshmi Cements (JKLC) is a north Indian Cement player, established in 1982. JKLC has clinker units in Sirohi, Rajasthan and grinding units in Rajasthan, Gujarat and Haryana. The current clinker capacity is 6.2 MTPA and cement capacity is 8.3 MTPA. JKLC derives sales volume from the northern and western regions. The company has 5.3% share of dispatches in the northern and western regions. JKLC is on the spree of capacity expansion;...

JK Lakshmi Cement (JKLC) has reported a subdued and lower-than-estimated operating performance in 4QFY17 with its EBITDA declining by 16% YoY and 13% QoQ to Rs716mn mainly owing to subdued sequential realization (-4% QoQ). Operating cost/tonne stood at Rs3,210 (+7% YoY and -0.2% QoQ) marginally higher than estimate of Rs3,186. All opex components came in in-line with estimates barring Power & Fuel cost/tonne, which surged by 37% YoY and 17% QoQ to Rs828. EBITDA/tonne came in merely at Rs312 vs. Rs395 & Rs452 in 4QFY16 & 3QFY17, respectively. Sales volume including clinker continued to remain firm and grew by 6% YoY and 25% QoQ to 2.29mnT. Trimming down our EBITDA estimate by 7% and 5% for...

On better control on cost, Q3FY16 EBITDA at Rs 830mn (up 24% YoY) was 28% above consensus and our estimates. Average realization at Rs 3,560/ton (down Rs 210/ton QoQ) was in line with our estimate. Cement prices in North market had corrected in the wake of demonetization (recovered now).

Background: JK Lakshmi Cements (JKLC) is a north Indian Cement player, established in 1982. JKLC has clinker units in Sirohi, Rajasthan and grinding units in Rajasthan, Gujarat and Haryana. The current clinker capacity is 6.2 MTPA and cement capacity is 8.3 MTPA. JKLC derives sales volume from the northern and western regions. The company has 5.3% share of dispatches in the northern and western regions. JKLC is on the spree of capacity expansion;...

JK Lakshmi Cement's Q3FY17 numbers were above our estimates. Revenues increased 3.5% YoY to | 670.9 crore (above I-direct estimate of | 616.6 crore) led by 3.8% YoY increase in volumes to 1.83 MT (above I-direct estimate of 1.65 MT) mainly due to higher utilisation at the Durg plant (up from 73% to 93% in Q3FY17) and...

JK Lakshmi Cement (JKLC) has reported a better-than-expected operating performance in 3QFY17. JKLC's EBITDA grew by 22% YoY to Rs0.83bn vis--vis our estimate of Rs0.63bn primarily attributable to better-than-estimated sales volume, which stood at 1.83mnT (+4% YoY and +6.5% QoQ). Operating cost/tonne declined by ~2.5% YoY and ~1.7% QoQ mainly on account of significant reduction in raw material cost/tonne and other expenditure/tonne. However, power and fuel cost/tonne surged by 2% QoQ due to increase in petcoke prices. Further, freight cost/tonne also increased by 1.8% YoY and 1.6% QoQ. Average net realization declined by 0.4% YoY...

Background: JK Lakshmi Cements (JKLC) is a north Indian Cement player, established in 1982. JKLC has clinker units in Sirohi, Rajasthan and grinding units in Rajasthan, Gujarat and Haryana. The current clinker capacity is 6.2 MTPA and cement capacity is 8.3 MTPA. JKLC derives sales volume from the northern and western regions. The company has 5.3% share of dispatches in the northern and western regions. JKLC is on the spree of capacity expansion;...

Following a strong volume growth in last five quarters, JKLC sales volume remained subdued in 2QFY17 (-2% yoy & -19% qoq) mainly due to seasonal overhang. Volume from Northern plants dipped 9.5% yoy to 1.37mnT, while volume from Durg plant rose...