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    Buy JK Cement, target price Rs 1635: HDFC Securities

    Synopsis

    JK Cement Ltd., incorporated in the year 1994, is a Mid Cap company (having a market cap of Rs 11527.26 Crore) operating in Cement sector.

    cement
    Promoters held 58.07 per cent stake in the company as of Jun 30, 2020, while FIIs held 13.42 per cent, DIIs 23.33 and public and others 5.18 per cent.
    HDFC Securities has given a buy rating to JK Cement with a target price of Rs 1635. The share price moved up by 0.12 per cent from its previous close of Rs 1487.50. The stock’s last traded price is Rs 1489.25.
    JK Cement Ltd., incorporated in the year 1994, is a Mid Cap company (having a market cap of Rs 11527.26 Crore) operating in Cement sector.

    Financials
    For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 1004.85 Crore, down 34.99 % from last quarter Sales of Rs 1545.65 Crore and down -30.09 % from last year same quarter Sales of Rs 1437.25 Crore Company has reported net profit after tax of Rs 49.95 Crore in latest quarter.
    jk1-graph

    Investment Rationale
    The brokerage remains bullish on the company, owing to healthy traction across both business segments. In grey cement, it expanded capacity in lucrative markets along with margin expansion tailwinds. In white/putty, it is steadily increasing capacity, and its leadership presence continues to support robust margin. THe brokerage has increased FY21/22/23E EBITDA by 9/3/3% each, factoring in higher volumes. It maintains BUY with a revised target price of Rs 1,635.

    Promoter/FII Holdings
    Promoters held 58.07 per cent stake in the company as of Jun 30, 2020, while FIIs held 13.42 per cent, DIIs 23.33 and public and others 5.18 per cent.



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    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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