JK Lakshmi Cement Ltd. share price target

Low cost pet coke inventory drives margins Jk Lakshmi Cement's Q2FY17 result is not directly comparable due to adoption of new accounting standard (IND AS). Under IND AS the company has reported sales including excise duty i.e | 733.1 crore. After adjusting for excise duty, the company's revenues increased 1.5% YoY to | 655.6 crore (below I-direct estimate of | 767.6 crore)...

JKLC’s operating performance was better than expected driven by better realisations. Exit from capex mode also visible and all capacities likely to be on stream by end of H1FY18. Given that realisation improvement sustains, possibilities of upgrades cannot be ruled out.At the price target, the stock will trade at a valuation of ~US$ 90/tonne. Fundamentals appear strong and if cement prices sustain, potential for recovery in earnings upgrade exists.

JK Lakshmi Cement's Q1FY17 numbers were above our expectations. Revenues in Q1FY17 increased 31.6% YoY to | 777.2 crore (above I-direct estimate of | 683.8 crore) led by 27.7% YoY increase in volumes (due to a pick-up in demand and 100% capacity utilisation of new Durg capacity). Further, realisation in the quarter...

Q1FY17 Revenue/EBITDA at Rs 7.77bn/Rs 1.17bn was largely in-line with our estimates of Rs 7.69bn/Rs 1.25mn. Volume grew strongly by 28% YoY (led by capacity expansion at Durg in Mar-15) and realisation improved 3% YoY as prices increased in North/Central markets. Total cost/ton declined 4% YoY, primarily on account of decline in power & fuel cost, freight cost and operating leverage benefits. Going ahead, we largely maintain our FY17E/18E EBITDA estimates. We expect ~70% EBITDA CAGR during FY16- 18E driven by ~11% volumes CAGR & improvement in margin (EBITDA at Rs860/t by FY18E from Rs369/t in FY16). Maintain Buy. Karvy maintain Buy with a revised target price of Rs 517. Our TP is based on 9x FY18E EV/EBITDA on standalone business and Rs 20/share to Udaipur Cement works).

Impressive Volume & Favourable Cost Scenario Boost Performance JK Lakshmi Cement (JKLC) has reported strong operating performance, with its EBITDA rising by 133% yoy and 37% qoq to Rs1.17bn in 1QFY17 vis--vis our estimate of Rs1.13bn. Operating cost/tonne declined by ~4% yoy mainly owing to sharp decline in power and fuel cost/tonne (-24% yoy) and freight cost/tonne (-8% yoy). Sales volume including clinker grew by 28% yoy to 2.11mnT out of which 0.50mnT came from Durg plant. EBITDA/tonne came in at Rs556 in 1QFY17 vs. Rs305 & Rs398 in 1QFY16 & 4QFY16, respectively. Blended realizations improved by ~3% qoq to Rs3,678. Considering the...

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;...

ICICI Securities Ltd | Retail Equity Research...

here. We roll forward the target to 9x EV/EBITDA on FY18 earnings and maintain our Neutral rating on the stock with revised price target of Rs 380 (vs. 280 earlier). However,webelieveJKLakshmiwillturnouttobeanattractivebetfromFY19,ifthere...

Strong beat led by highest ever volume growth: J K Lakshmi Cement's (JKLC) volume grew ~39% YoY to 2.16mt (East mix 22%, up ~4% QoQ), while realization declined by 7% QoQ (8.5% YoY) in 4QFY16. EBITDA grew 20% YoY...