JK Lakshmi Cement Ltd. share price target

Q1FY16 EBITDA at Rs 507 mn was higher than our estimate of Rs 356 mn on account of better than expected operating margin (8.6% vs. estimate of 6.2%) which is led by lower other expenses. Sales volume grew strongly by 15% YoY (broadly in-line) led by recent commissioning of East capacity while realisation declined 14% YoY on account of weak pricing in its key markets.

Background: JK Lakshmi Cements 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...

JK Lakshmi Cement (JKLC) reported a weak and below than estimated operating performance as operating profit declined by ~55% yoy to Rs507mn as against our expectation of Rs638mn. Weak operating performance was bruised by ~14% yoy drop in average realizations at ~Rs3,569/tonne (our assumption was Rs3,615/ tonne). EBITDA/tonne stood at Rs306 v/s Rs786 seen last year. Operating cost/ tonne has been under control as it declined by ~3% yoy. Sales volume (including clinker) growth has been impressive as it grew by ~15% yoy and ~7% qoq to 1.66mnT. Subdued operating performance coupled with higher interest outgo and...

Background: JK Lakshmi Cements 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 6.6 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 doubling its cement capacity by...

JK Lakshmi Cement's Q4FY15 EBITDA at Rs 715 mn was below our estimate as the operating margins came lower than expected (on higher energy and employee cost) coupled with lower volumes which declined sharply by ~ 9% YoY owing to rural slowdown.

Background: JK Lakshmi Cements 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 4.1 MTPA and cement capacity is 5.3 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 doubling its cement capacity by 4.2 MTPA...

JK Lakshmi cement (JKLC), an ISO 9002 certified company, started its operation in the year 1938 in Sirohi district located in Rajasthan. It manufactures wide range of cement. It is part of...

Background: JK Lakshmi Cements 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 4.1 MTPA and cement capacity is 5.3 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 doubling its cement capacity by 4.2 MTPA by...

Background: JK Lakshmi Cements is a north Indian Cement major, established in 1982. JKLC has clinker units in Sirohi, Rajasthan and grinding units in Rajasthan, Gujarat and Haryana. The current clinker capacity is 4.1 MTPA and cement capacity is 5.3 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 doubling its cement capacity by...