Please refer to important disclosures at the end of this report
J.K.Cement Ltd (JKCL) is engaged in manufacturing cement and cement
products. The company has expanded its cement capacity by 3.0 MTPA through
two split grinding units (1.5 MTPA each).The total project cost is pegged at
`1,730cr, which includes a 25 MW coal-based thermal power plant.The
company has also commissioned 0.2 MT wall putty plant in Madhya Pradesh.
Apart from this, the company has installed a grey cum white cement plant with
an installed capacity of 0.6 MTPA (white cement) and 1.02 MTPA (grey cement)
in Fujairah (UAE). White cement business having entry barriers, relatively small
industry size and largely duopoly nature of the market coupled with strong
growth in demand has created a steady cash flow stream for JKCL. Further,
railway siding at these newer capacities coupled with grid connection &
refinancing of loans at lower interest cost in UAE to help the company to improve
margins. Going forward, we expect a better monsoon, pick up in construction
activities and higher infra spend in Maharashtra to drive volumes & realization.
JKCL has reported revenue and bottom line growth of 13% & 5% respectively
over FY2012-17 and also operating margins has improved from 13.49% in
FY14 to 16.89% in FY17.Further JKCL has been maintaining a dividend payout
of 26.82% since 2012 and the cash flows has also improved from `519.79cr in
FY12 to `759.46cr in FY17. The company has a ROE of 17.84% and it is
currently trading at valuation EVEBITDA 12.90x TTM earnings .Hence BUY.
CMP `1054
52 Week High / Low
Avg. Daily Volume
Market Cap (` cr)
BSE Sensex
Face Value (`)
Reuters Code
Vaibhav Agrawal
022 3935 7800 Ext: 6808
[email protected]gelbroking.com
J.K.Cement Ltd
Others | Cement
Dec 13, 2017
J.K.Cement Ltd |Cement
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Disclosure of Interest Statement J.K.Cement
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment period): Reduce (-5% to -15%) Sell (< -15)