Superior execution; growth plans to continue

Company
27 Feb 2024
5 Min read 
  • JK Cement has demonstrated superior execution capabilities after commissioning its new plant in Madhya Pradesh.
  •  The company achieved a capacity utilization of ~90% within one year of commissioning.
  •  JK Cement plans to expand its capacity at the new plant and has a disciplined expansion approach.
  •  The company has a better regional mix and cost benefits compared to its peers.
  •  EBITDA estimates have been upgraded for FY25/26, and the target multiple has been raised.
  •  JK Cement has shown exceptional project executions and marketing strategies, leading to higher volume growth.
  •  The company has recently commissioned a greenfield grinding unit and has plans for further capacity expansions.
  •  Profitability is expected to improve due to a better regional mix and cost efficiencies.
  •  Net debt is expected to peak in FY25 and return ratios are projected to improve.
  •  The stock currently trades at attractive valuation multiples.
Login / Open Demat Account to read the report

Never Miss Out on Hot Market Updates

Get exclusive market news delivered to your inbox - on priority