Friday, May 25, 2018

Buy JK Cement; target of Rs 1209: Edelweiss

Edelweiss' research report on JK Cement

JK Cement��s (JKCE) Q4FY18 volumes jumped 27% YoY for grey cement (20% estimate), while those for white segment rose 11% (7% estimate). Despite impressive volumes, EBITDA at INR1.82bn dipped 5% YoY (5% below estimate) owing to weak prices and cost pressure in grey cement business. With grey cement realisation/t rising 6% versus a cost hike of 13% YoY, EBITDA/t stood at a tepid INR271 (INR456 for FY18).


JKCE remains one of our preferred picks as it is likely to be a major beneficiary of expected surge in industry clinker utilisations in North. Robust white cement business has potential to mitigate volatility in grey segment. Factoring in superior RoE, we value JKCE at 10x FY20E EV/EBITDA and maintain ��BUY/SO�� with revised TP of INR1,209.

For all recommendations report,�click here

Disclaimer:�The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Read More

No comments:

Post a Comment