Please refer to important disclosures at the end of this report
1
J.K. Cement Limited (JKCE) is an India-based holding company. The Company is
engaged in manufacturing cement and cement products. Its product portfolio
includes grey cement, white cement and wall putty. The white/putty business
continued to deliver strong profitability led by strong demand driven sales uptick
and lower energy costs. Management remains bullish on grey cement demand
uptick during FY17 led by surge in government-backed projects and low interest
cost. Over the next 10 years, the company expects 8-9% demand CAGR in India.
JKCE is the second largest wall putty manufacturer in India and continues to
deliver strong sales growth led by strong demand in the market. JKCE has
strong promoter holding of 67% which has increased over the last several years,
indicating promoters’ strong confidence in their business. It seems that one can
see a rebound in JKCE’s grey cement profitability and decent growth in its
white/putty profitability. Strong operating cash flow along with lower Cape
x
should lead to moderation in its Net Debt to equity in coming years. Hence Buy.
BUY
CMP `875
Stock Info
Sector
Beta 0.8
Bloomberg Code
Shareholding Pattern (%)
Promoters 67.0
MF / Banks / Indian Fls 15.5
FII / NRIs / OCBs 11.5
Indian Public / Others 5.9
Abs. (%) 3m 1yr 3yr
Sensex 3.2 7.7 41.3
J K Cement 31.3 36.4 361.3
Nifty 8,611
Reuters Code JKCE.BO
Face Value (
`
)10
BSE Sensex 27,866
52 Week High / Low 885/425
Avg. Daily Volume 4,465
Cement
Market Cap (
`
cr) 6,116
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
J K Cement
Others | Cemen
t
October 03, 2016
J K Cement | Cement
October 03, 2016
2
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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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%)