JK Lakshmi Cement Ltd. share price target

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...

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).

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...

Healthy sales volume and cost benefits aid performance JK Lakshmi Cement (JKLC) has reported ~20% yoy growth in operating profit to Rs859mn vis--vis our estimate of Rs825mn, mainly supported by stupendous growth in sales volume (+39% yoy to 2.16mnT) coupled with cost benefits. Average realization/tonne remained subdued (down 8% yoy & 7% qoq) owing to poor realization scenario seen in Eastern & Northern markets. However, on account of 21% yoy decline in power and fuel cost/tonne owing to lower petcoke price, operating cost/tonne declined by 9% yoy & 8% qoq to Rs3,020. As we continue...

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...

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) reported a weak operating performance, which is marginally below the expectation since EBITDA came in at Rs669mn as against the estimate of Rs705mn. Reported EBITDA/tonne came in at Rs380 v/s Rs503 and Rs381 in 3QFY15 and 2QFY16, respectively. EBITDA margin stood at ~10.3% (down 324bps yoy). Sales volume (including clinker of 0.166mnT) grew strongly by 17% yoy to 1.76mnT. Though we cut our EBITDA estimates by ~15% and ~23% for FY16E and FY17E, respectively to factor subdued realizations, we still maintain our positive view on the stock based on: 1) expected recovery in pricing, 2) strong...

JKLC's operating performance was lower than our expectations, largely driven by weak realisations. Its volumes have recovered, but the recovery is yet not remunerative. It will continuetoremainincapexmodeuntiltheendofFY18andfurthermarginaldelayscannot...