It Is Recommended to Buy JK Cement at Target of Rs 1234

March 1, 2018

It is expected that the JK Cement will report Domestic Volume CAGR of 12.8% to 11.3 MnT (Grey + White Cement) over FY17 – 20E. it will also report revenue CAGR of 15.5% to Rs 61.2bn over  FY17 – 20E.

Such things will surely drive operating and Net earnings CAGR by 20.8% and 35.6% respectively.

The cement dispatches during the quarter rose by 20.3% YoY.

Grey Cement dispatches increased by 21.5% YoY.

The white cement & wall putty sales during the quarter stood at 0.3Mt.

The blended realisation for the quarter increased by 5.4%, Grey Cement realisation increased by 6.9% YoY, and white cement realisation registered rise of 3.1% YoY.

JK Cement is trading at 10.1x/8.8x, FY19E/20E EV/EBITDA at CMP.

It is recommended to raise your target price to RS 1,234/share.


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